Personal Finance and You
The five primary activities related to personal finance are:
Earning, Spending, Giving, Saving and Investing
This sector of our economy is sometimes referred to as the “engine of an economy”.
The Business Sector
Goods and services that are sent OUT to other countries.
Exports
How much of a product buyers are willing to buy at a certain price is referred to as:
Demand
What are the two important uses for money in our economy?
1. Used as a form of exchange between all sectors of our economy.
2. Used as a common measurement unit to set prices.
Canada developed a new agency due to the poor financial literacy of Canadian citizens. This agency is called...
Hint: The acronym is FCAC
Financial Consumer Agency of Canada
This policy is the way a government plans to adjust its spending and taxation levels to influence an economic system.
Fiscal Policy
This type of economic system emphasizes private ownership, profit and competition.
Capitalism
The ideal price and quantity of a product in the marketplace.
Ms. Lister referred to this as the "sweet spot".
Equilibrium Point
A 10 dollar bill, 20 dollar bill, etc. is referred to as a:
Bank Note
When it comes to making decisions, goals, passions, interests, etc. are all examples of:
Internal Factors Affecting Decisions
This sector of our economy sets Monetary policies and produces our currency.
Bank of Canada
In this stage of the economic life cycle, consumers begin to spend less, businesses may have to lay off workers, and businesses start to cut back on production.
Contraction
Part 1: If supply for a product is low, price will:
Part 2: This is referred to as a ____________ Relationship.
Increase
Indirect
A written order telling your bank to pay a sum of money out of your account to a specified person.
Cheque
This is the fourth step in the decision-making model process.
Make a decision/Take action
The persistent rise over time in the average price of goods and services is referred to as:
Inflation
This type of economic system creates a “classless society” where everyone is equal.
Communism
When demand is high, prices will:
Increase
Due to the phasing out of the penny, if a customer's total is $4.87 and they pay with cash, what would the amount be rounded up or down to?
$4.85 - Their total would be rounded down to the nearest five-cent increment.
When you give up one thing in order to gain another thing, this is referred to as a:
Trade-Off
This sector of our economy provides the resources needed for production including: entrepreneurial ideas, labour, land and capital.
Private Household Sector
The three fundamental questions every economic system must answer:
1.What will be produced and who will produce it?
2.How will it be produced?
3.Who will consume what is produced?
In which type of economic system is the Law of Supply and Demand an important element?
Capitalism because it is based on "free market" decisions.
Before money was used, individuals would directly exchange items between themselves. This is called:
Bartering