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Personal Finance.
Exam Flash Cards
| Question | Answer |
|---|---|
| Price at a point where the amount supplied equals the amount demanded. | Equilibrium Price |
| Consumers will generally buy less of a product at a higher price than a lower price; consumers are demanding. | Law of Demand |
| The higher the price of a product the more they'll supply & the lower the price the less they'll supply. | Law of Supply |
| Basic economic decisions are based on the actions of the buyers & sellers. | Market Economy |
| Amount of money given or asked for when goods & services are bought or sold. | Price |
| Temporary under-supply of an item. | Shortage |
| Over-supply of an item. | Surplus |
| Things you own that have value. | Assets |
| Statement listing your assets, liabilities, & net worth. | Balance Sheet |
| Two part statement listing cash income, cash expense, cash saving, & cash deficit. | Cash Flow Statement |
| Negative cash flow in which monthly cash incomes are less than monthly cash expenses. | Deficit |
| Cash expenses that stay relatively stable. | Fixed Expenses |
| Amounts you owe to others. | Liabilities |
| Total assets minus total liabilities. | Net Worth |
| Cash expenses that can change a lot from month to month, by choice. | Variable Expenses |
| A natural talent. | Aptitude |
| Activities of an individual or group involved in producing and distributing goods & services to customers. | Business |
| Can be physically weighed & measured. | Goods |
| Necessary wants; things we must have in order to survive. | Needs |
| Cost of choosing one things over another. | Opportunity Cost |
| Anything that people can use to make or obtain what they want or need. | Resource |
| Tasks that people or machines perform. | Services |
| Things we wish we could have. | Wants |
| All items, other than natural, used to produce goods & services. | Capital Resources |
| Set of rules by which a nation decides how to distribute its resources to satisfy people's wants. | Economic System |
| The initiation to combine natural, human, & capital resources to produce goods & services. | Entrepreneurship |
| People who contribute the physical & mental energy to the production process. | Human Resources |
| Another term for human resources. | Labor |
| Cannot be replaced. | Nonrenewable Resources |
| Can be replaced by themselves or by the efforts of others. | Renewable Resources |
| Lack of something that can be used to satisfy the wants of an individual or group; always exists. | Scarcity |
| Consists of nothing more than your signature. | Blank Endorsement |
| Restricts the use of the check so it must be deposited into your account. | Restrictive Endorsement |
| Used to transfer a check to another person. | Endorsement in Full |
| Any checks that are written but not cleared. | Outstanding Checks |
| To balance your checkbook. | Reconcile |
| Amount of time it will take for your money to double when place in a savings account at a given interest percentage. | Rule of 72 |
| How quickly and conveniently you can retrieve your money from an investment. | Liquidity |
| Money received by you. | Income |
| Period of severe economic decline. | Recession |
| Very severe recession that lasts for several years. | Depression |
| First economic indicator; dollar value of all final goods & services produced in the United States in a single year. | GDP (Gross Domestic Product) |
| Second economic indicator; prolonged rise in the level of prices for goods & services that reduces the purchasing power of money. | Inflation |
| Third economic indicator; percentage of the unemployed work force looking for jobs. | Unemployment Rate |
| Replaced by GDP; not only the United States. | GNP (Gross National Product) |
| Most economic resources & business are owned by individuals or groups rather than public businesses. | Private Enterprise System |
| Contest between businesses to win customers. | Competition |
| Amount of money left over after a business pays for the cost of producing goods & services. | Profit |
| Businesses act in a responsible & fair way toward their employees & society. | Social Responsibility |
| If there are so few firms selling one kind of product, there is no competition. | Monopoly |
| Receives a monthly statement, accessible through ATM's, low interest rates, & easily accessible. | Statement Savings Account |
| Certifies that you loaned money to the government or a corporation & outlining the terms of payment; are IOU's. | Bonds |
| Professionally managed portfolio's made up of stocks, bonds, & other investments. | Mutual Funds |
| Represents ownership of a corporation; stockholders own shares & are entitled to a share of the profits. | Stocks |
| Retirement plan that allows you to contribute to a savings plan from your pre-tax earnings that your employer may match. | 401 (k) |
| Earnings on the account are tax free after five years. | Roth IRA |
| Gaining an amount as a return on an investment. | Yield |
| Government charge on earnings or other sources of income. | Income Tax |
| Money raised through this fund is used to pay retirement benefits. | Social Security Tax (FICA) |
| Money is used for health & hospital insurance; people 65 and over. | Medicare |
| Hidden or built in tax that is a certain percentage of the price. | Excise Tax |
| Tax on imported goods that are collected by the federal government. | Tariff |
| All individuals pay this on wages & salaries; withheld from your check. | Federal Income Tax |
| Different branch of government gets your money. | State Income Tax |
| Goes to the city you live in. | City Income Tax |
| Varies from state to state; doesn't affect the price of food. | General Sales Tax |
| Local government gets most of the money for items owned by people or businesses. | Property Tax |
| Left at the time of someone's death. | Estate & Inheritance Tax |
| Tax on things you receive from others; can't give money away without being taxed. | Gift Tax |
| Impose a higher percentage rate of tax on people with higher incomes. | Progressive Tax |
| Item or activity that is the source of the tax. | Tax Base |
| Property offered & pledged to secure repayment of a loan & subject to seizure should the borrower default. | Collateral |
| Measure of your financial worth. | Capital |
| Income available to make repayment. | Capacity |
| Involves your honesty & reliability in meeting financial responsibilities. | Character |
| Protection against inflation; more in the past. | Real Estate |
| Restricted access to your money, withdrawal penalty if passed expiration date, no risk, no fees, higher interest, & simple. | Certificate of Deposit (CD) |
| Legal process to get out of debt when you can no longer make all of your required payments. | Bankruptcy |
| Profit from sale of capital assets such as stocks, bonds, & real estate are tax deferred. | Capital Gain |
| Calculated on the combined total of the original sum borrowed & the interest it has already accrued. | Compound Interest |
Created by:
Carly.
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