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Financial Literacy Unit Vocab
Terms in this set (47)
fundamental economic problem of having seemingly unlimited human needs and wants, in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs.
Four factors of production
natural resources, capital, human resources, and entrepreneurship
the demand for the two kinds of good will be bound together by the fact that customers can trade off one good for the other if it becomes advantageous to do so. Supply and demand
good that has to be consumed with another good
the central bank of the United States; incorporates 12 Federal Reserve branch banks and all national banks and state-chartered commercial banks and some trust companies; "the Fed seeks to control the United States economy by raising and lowering short-term interest rates.
Gross Domestic Product
the total market values of goods and services produced by workers and capital within a nation's borders during a given period (usually 1 year).
1 Corporation vs. 2 Partnership vs. 3 Sole Proprietorship
1: Many owners, usually can be sold through stocks/shares. 2: Multiple owners. 3: Only one owner.
Three Economic Questions
What goods and services should be produced, How should the goods and services be produced, For whom should the goods and services be produced
Types of Economic Resources
Land, Labor, Capital, Enterprise
command, market, mixed
system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's citizens and businesses and there is little government intervention or central planning.
a downturn in a nation's economic activity. The consequences typically include increased unemployment, decreased consumer and business spending, and declining stock prices.
A period of general market decline
The cost of an alternative that must be forgone in order to pursue a certain action.
In times of recession; Emergency reserve fund, Accumulation fund, Long-range investments.
Benefits of Graduating
higher degrees = higher tier jobs and salaries
How to Increase Possibilities of Getting a Job
graduate high school, get a graduate's degree, master's degree, PhD, etc.
Net Pay vs. Gross Pay
remaining amount after deductions from the gross salary; employee's regular remuneration including allowances, overtime pay, commissions, and bonuses, etc., before any deductions are made.
Advantages of Getting Credit
can make more money later on.
interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. It is a finance charge expressed as an annual rate.
All other credit cards can be paid minimum, except (old) American Express.
The amount of income left to an individual after taxes have been paid, available for spending and saving.
"Pay Yourself First"
Before you pay your bills, before you buy groceries, before you do anything else, set aside a portion of your income to save.
Checking Account Registers
general insurance system of risk financing to protect the purchaser (the "insured") from the risks of liabilities imposed by lawsuits and similar claims. It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy.
coverage for ones own faults of mistakes against another party.
Car insurance deductibles
deductibles in which refunds or stipends can be given as compensation for insurance payments.
liability, accident, auto all inclusive coverage.
Better Business Bureau
A non-profit, member-funded organization of thousands of US businesses dedicated to building fair and honest relationships between businesses and consumers. The BBB uses news alerts, databases, and other methods to maintain an ethical business environment
checks that are nullified or void by the bank because of insufficient funds in the checking holder's account.
forms filled out by employers, employees, government respectively that contain personal information that determine certain tax breaks.
Credit Reporting Agencies
provide service to the general public by providing credit report information.
Benefits and consequences of..bankruptcy
Eliminate all debts owed; freezes credit for 7 years.
Taxes withheld from paychecks
insurance charge, state/federal taxes.
Insurance policy coverage provisions
guidelines and "fineprint" within the insurance policy coverage plan.
investigates certain cases of tax returns to make sure citizens are being morally just in their statements.
examine carefully for accuracy with the intent of verification
retirement plans for the elderly to make their money last throughout their lifetime.
commercial principle that without a warranty the buyer takes upon himself the risk of quality.
In the United States, laws that require manufacturers to repair defective cars.
Role of FDIC
Insures bank accounts up to a certain limit threshold
that draw money from bank accounts when used
Short-term money market instruments issued by banks and carrying a fixed interest rate to a set maturity date.
Credit Card Interest Rates
rates of interest to certain credit card companies. Fluctuation is very common.
Security Deposits on Rentals
used to make sure that the renter does not skip a months pay. Provides landowner to evict the renter without suffering financial losses.
Pros/Cons of Universal Healthcare
Everyone will have insurance. The level of medical treatment will lower itself. Standard of medicine will decline
social welfare program in the U.S.; includes old-age and survivors insurance and some unemployment insurance and old-age assistance
Types of Mortgages
Interest Only, Adjustable Rate, Equity, Reverse
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