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Chap. 20
Term | Definition |
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CONSUMER | Or someone who buys a product or service. |
DISPOSABLE INCOME | The money that remains after all taxes on it have been paid. |
DISCRETIONARY INCOME | the money reamining after paying for necessities. |
CONSUMERISM | A movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers. |
COMPARISON SHOPPING | Buying strategy to get best buy for the money. |
WARRANTY | The promise of a manufacturer or a seller to repair or replace a faulty product with in a certain time period. |
BUDGET | A careful record of all the money you earn and spend. |
INCOME | The money you earn. |
EXPENSE | The money you spend on everything, including what you choose to save. |
CREDIT | Borrowing money to pay for something now while promising to repay it later. |
ANNUAL PERCENTAGE RATE (APR) | The annual cost of credit expressed as a percentage of the amount borrowed. |
COLLATERAL | Property, such as a house, car, or other valuable item, that a borrower pledges as security for a loan. |
BANKRUPTCY | The inability to pay debts. |
SAVE | To set aside income for a period of time so that it can be used later. |
INTEREST | The payment people receive when they lend money, or allow someone else to use their money. |
PRINCIPAL | The amount you initially deposited. |
RETURN | Profit earned by the investor, is usually low. |
STOCK | Ownership share of a corporation. |
DIVIDEND | Payment of a portion of a company's earnings. |
BOND | Lending money to a company or goverment. |
MUTUAL FUND | Pools of money from many people. |
IMPULSE BUYING | Purchasing an item on the spot beacuse of an emotional rather than planned decision. |