Very Interesting
This interest is computed on principal only.
Simple Interest
This measures the sum of all economic activity.
Gross Domestic Product
What's the first step of the budgeting process?
Set financial goals.
Food, clothing, and entertainment are examples of what type of expense?
Variable Expense
What type of asset do you use to pay for bills and emergencies?
Monetary assets
The value of the next best alternative.
Opportunity cost
Expansion, peak, contraction, and trough.
To achieve your financial goals.
Rent and vehicle insurance payments are examples of what kind of expense?
Fixed Expense
What is an example of an investment asset?
Stocks
Child support, social security benefits, your paycheck, and public assistance are all examples of what?
Income
This is the steady rise in prices over time.
Inflation
This is the study of personal and family resources considered important in achieving financial success.
Personal Finance
Money owed to a doctor, lawyer, friend - any money you owe.
Other than assets, what two other things would you find on a balance sheet?
Liabilities and net worth
This is the best kind of interest.
Compound Interest
Who suffers in times of high inflation?
People on fixed incomes
Most people can only increase net worth by doing what?
Spending less than they make so they cand save and invest.
Which type of expense is not easy to reduce?
Fixed expense
What is the formula to calculate net worth?
Assets minus liabilities
We love income, but this type of income is preferable (or best).
Tax-exempt income
This indicator does the best job of measuring the state of the economy at any point in time.
Gross Domestic Product
This is the money you use to pay for all the necessities of life.
Disposable Income
Checking account statements provide a source of information for the value of what?
Expenditures
How do we value assets on a balance sheet?