Supply & Demand
What is Supply
What is: the amount of something available to consumers
What are taxes
What is: a mandatory payment from individuals or businesses to cover gov’t services
What is a Bank
What is: a financial institution that provides a place to safely hold your money
What is Investing
What is: purchasing assets hoping they'll appreciate (grow) or generate income
What is the Principal
What is: the starting amount
What is Demand
What is: the consumer's willingness to buy something
Use of Taxes
What services do banks offer
What is: checking accounts, savings accounts, loans
What does Income mean
What is: the investment puts money in your pocket without you having to sell it
What is interest (2 answers)
What is: 1. the cost of borrowing money, 2. the reward for saving and lending money
What Affects Supply & Demand
What is: Price
Types of Taxes
What is: direct vs indirect (income tax, sales tax, property tax)
What is: interest and fees
What does Appreciation mean?
What is: when something grows in value, when something is worth more than what you put in
What is the formula for interest
What is: interest = interest rate x principal
How does Price affect Supply
What is: if a good's price increases, so will the supply
What is a tariff
What is: a tax placed on a good coming into the country from another country
What is a bank's main goal
What is: for-profit institution (make money)
What are the 3 investment types
What is: stocks, bonds, funds
How do you get paid from bonds?
What is: interest payments + principal amount paid at the end of the contract
5 Ways Price affects Demand
What is: 1. price of a product/service, 2. buyers income, 3. price of substitute goods, 4. consumer preferences, 5. consumer expectations for a price change
What are the effects of tariffs (4 answers)
What is: makes imports more expensive, reduces trade, increases costs for businesses and consumers, disproportionately affects low-income households
What does FDIC mean/do
What is: Federal Deposit Insurance Corporation, covers up to $250,000
What is the difference between Simple Interest & Compound Interest
What is: simple interest is calulcated only on the principal amount, compound interest is calculated on the principal + all previous interest
How do you make money from stocks?
What is: capital gains (selling for higher than you bought) or dividends (periodic cash distributions of profit)