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chapter 20
Term | Definition |
---|---|
consumer | someone who buys a good or service |
disposable income | money income left after all taxes on it have been paid |
discretionary income | money income left after necessities have been brought and paid for |
consumerism | a movement to educate buyers about the purchases they make and to demand better and safer products from manufacturing |
comparison shopping | buying strategy to get best buy for the money |
warranty | the promise made by a manufacturer or a seller to repair or replace a product within a certain time period if it is faulty |
budget | a plan for making and spending money |
income | money received from labor, business, or property |
expense | money spent on goods and services |
credit | money borrowed to pay for a good or service |
annual percentage rate | annul cost of credit expressed as a percentage of the amount borrowed |
collateral | property or valuable item serving as security for a loan |
bankruptcy | inability to pay dept |
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 |
principle | the rule of conduct or belief |
return | profit earned through investing |
stock | ownership share of a corporation |
dividend | payment of a portion of a company's earnings |
bond | contract to repay borrowed money with interest at a specific time in the future |
mutual fund | pools of money from many people who are invested in a selection of individual stock and bonds chosen by financial experts |
impulse buying | purchasing an item on the spot because of an emotional rather than planned decision |