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Chapter 20
Vocabulary
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 after necessities have been bought or paid for |
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 the best buy for the money |
warranty | promise made by a manufacturer or seller to replace or repair a product within certain period of time 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 or services |
credit | money borrowed to pay for a good or service |
annual percentage rate (APR) | annual cost of credit expressed as a percentage of the amount borrowed |
collateral | property or valuable item serving as security for loan |
bankruptcy | inability to pay debts |
save | to set aside income for a period of time so that it can be used later |
interest | payment people receive when they lend money or allow someone else to use their money |
principal | the most important |
return | profit earned through investing |
stock | ownership share of corporation |
dividend | payment of a portion of a company's earning |
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 stocks and bonds chosen by financial experts |
impulse buying | purchasing an item on the spot because of an emotional rather than planned decison |