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Per Fi. Ch 1-1 Voc

Know these terms.

QuestionAnswer
goals the things you want to accomplish
personal financial planning spending, saving, and investing your money so you can have the kind of life you want as well as financial security
values the beliefs and principles you consider important, correct, and desirable
opportunity cost what you give up when you make one choice instead of another
liquidity the ability to easily convert your financial resources into cash without a loss in value
service a task that a person or machine performs for you
good a physical object that is porduced and can be weighed or measured
economics the study of the decisions that go into making, distributing, and using goods and services
economy consists of the ways in which people make, distribute, and use their goods and services
supply the amount of goods and services that are available
demand the amount of goods and services people are willing to buy
Federal Reserve System the central banking organization of the United States an d it controls the money supply by determining interest rates and by buying or selling government securities.
inflation the rise in the level of prices for goods and services
consumer a person who purchases or buys and uses goods or services
interest the price that is paid for the use of another's money
Created by: Mrs. Sutherland