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25 Cards in this Set
- Front
- Back
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What is an economy? |
A system which goods and services are produced and distributed. |
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What is a loan? |
A debt evidenced by a “note,” whichspecifies the principal amount, interestrate and date of repayment (example:house mortgage)
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What is debt? |
An obligation of repayment owed by oneparty (debtor/borrower) to a secondparty (creditor/lender)
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What is interest? |
A fee paid by a borrower to the lender forthe use of borrowed money
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What is a consumer? |
A person or organization that buys/usesgoods or services
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What is a carbon check? |
A copy of each check you write.
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What is an overdraft? |
When money is withdrawnfrom a bank account and the availablebalance goes below zero.
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What is reconciling? |
The act of matching your bankstatement with your checkbook.
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What is an impulse purchase. |
An item that is bought withoutprevious planning or considerationof the long-term effects.
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What is a budget? |
A summary that shows total incomeand spending for a given time period.
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What is depreciation? |
A decrease or loss in value. |
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What is a credit report? |
A detailed report of an individual’scredit history.
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What is a credit card? |
A card issued by a bank that allowsusers to finance a purchase.
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What is an annual fee? |
A yearly fee that’s charged by the creditcard company for the convenience of thecredit card.
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What is compound interest? |
Interest paid on interestpreviously earned.. |
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What is an emergency fund? |
A savings account that is set aside tobe used only for emergency expenses.
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What is inflation? |
The persistent increase in the cost ofgoods and services or the persistentdecline in the purchasing power of money.
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What is an interest-bearing account? |
An account that generates interestincome on the available balance inthe account
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T or F You must establish credit in order to buya house. |
False |
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T or F If you are a victim of identity theft, youare only responsible for paying back halfof the debt. |
False |
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T or F When it comes to saving money, the amountyou save is determined by how much youhave left at the end of the month once all ofyour spending is done. |
False |
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T or F Your income level greatly affects yoursaving habits. |
False |
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Instead of borrowing money for largepurchases, you should set money aside in a _______ fund over time and pay with cash.
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Sinking Fund |
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T or F The number-one cause of divorce in NorthAmerica today is stress and disagreementsover money. |
True |
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T or F Our culture thinks student loan debt isnormal and that it’s an acceptable way topay for college. |
True |
