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Role of the Consumer
Debt
Necessities
Saving
Investing
100
Any person or group that buys or uses goods and services to satisfy personal needs and wants.
What is a consumer?
100
Receipt of money either directly or indirectly to buy goods and services in the present with the promise to pay for them in the future.
What is credit?
100
A store open 16 to 24 hours a day, carrying a limited selection of relatively higher-priced items.
What is a convenience store?
100
Setting aside income for a period of time so that it can be used later.
What is saving?
100
The payment people receive when they lend money or allow someone else to use their money.
What is interest?
200
Income remaining for a person to spend or save after all taxes have been paid.
What is disposable income?
200
The amount of money the borrower must pay for the use of someone else's money.
What is interest?
200
The ability of an item to last a long time.
What is durability?
200
Savings plans that require savers to leave their money on deposit for a certain period of time.
What are time deposits?
200
People who have invested in a corporation and own some of its stock.
What are stockholders?
300
Money a person has left to spend on extras after necessities have been bought.
What is discretionary income?
300
Manufactured items that have a life span longer than three years.
What is a durable good?
300
The insurance that pays for bodily injury and property damage.
What is liability insurance?
300
A period of time at the end of which time deposits will be paid at a stated rate of interest.
What is maturity?
300
The increase in value of a asset from the time it was bought to the time it was sold.
What is capital gain?
400
Choosing the alternative that has the greatest value from among comparable quality products.
What is a rational choice?
400
Debt owed on houses, buildings or land.
What is mortgage?
400
The amount of use a person gets from an item over time and the value a person places on this use.
What is service flow?
400
An account that pays relatively high rates of interest, requires a minimum balance, and allows immediate access to money.
What is a money market deposit account?
400
The decrease in the value of an asset or bond from the time it was bought to the time it was sold.
What is capital loss?
500
Getting information on the types and prices of products available from different stores and companies.
What is comparison shopping?
500
Something of value that a borrower lets the lender claim if a loan is not repaid.
What is collateral?
500
The fees involved in arranging for a mortgage or in transferring ownership of property.
What are closing costs?
500
Time deposits that state the amount of the deposit, maturity, and rate of interest being paid.
What are certificates of deposits?
500
Spreading of investments among several different types of accounts to lower overall risk.
What is diversification?