Economic Decisions
This is the time frame of anything within a year.
short-term
This is a deposit made to a bank that increases by a percentage interest rate every year and then is returned for a profit.
CD
This is the money earned from providing goods and or services.
Income
This is the gradual rise in prices over time.
Inflation
When someone borrows money that must be repaid with interest this is known as a ____.
loan or debt
Which decision is long-term: Buying a car in 4 years or starting a retirement account.
Retirement account
When someone lends money to a company or government for a period of time which will be returned later after increasing overtime with interest.
Bond
This is the total value of property and savings someone has.
Wealth
Cost of living
This is the percentage that must be repaid on top of the principle amount of a loan.
Interest
The money, wealth, skills, and time available to us.
Resources
This is a pooling of funds managed by a professional and invested in different stocks, bonds, and other investments.
Mutual Fund
This is something that someone owns that contributes positively to their wealth
Asset
This is the measurement of your financial ability to buy products and services.
Purchasing power
If a debt or loan is backed by collateral in the form of property is it secured or unsecured?
Secured
The choices we have when making an economic decision.
Opportunities
Buying a share of a company to be sold later at a higher value for profit.
Stock
This is something that can cost money and take away from someone's wealth.
liability
If inflation increases but income remains the same, does your purchasing power increase or decrease?
decrease
This is the measurement of your creditworthiness for banks to assess how risky it is to lend you money.
Credit score
The different priorities we have when making an economic decision such as spending the money on things we want or saving the money for later.
Preferences
This is the cost of not choosing an opportunity when making a financial decision
How can someone best prepare for risks
Is real or nominal gains the one adjusted for after inflation?
Real
If you have a low credit score you may have to pay _________________ (more/less) in interest on loans and big purchases.
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