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unit 2 vocab
Terms in this set (71)
a person who purchases goods and services for personal use.
income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.
income remaining after deduction of taxes, other mandatory charges, and expenditure on necessary items.
alternative that has the greatest perceived value.
An attempt to persuade consumers that a product is different from and better than any other.
Aids consumers by providing useful information about a product.
Bait and switch
The action (generally illegal) of advertising goods that are an apparent bargain, with the intention of substituting inferior or more expensive goods.
Comparing prices and brands from multiple stores and companies.
promise made by the manufacturers or seller to repair or replace a product if its faulty.
word, picture, or logo on a product that helps consumer distinguish it from similar products.
there is no brand name and its difficult to tell who made the product.
a movement that started on the 1960's to educate buyers about the purchases that they make and to demand better and safer products from manufacturers.
respecting the rights of products and sellers.
receiving funds to buy goods and services with the promise to pay for them in the future.
amount originally borrowed.
amount the borrower must pay for the use of someone else's funds.
consumers repay with equal payments over a period of time.
manufactured items that last longer than 3 years, on an installment plan.
installment debt owed on a real property such as houses, buildings, or land.
a bank that offers services to the general public and to companies.
Savings and loan association (S&L)
an institution that accepts savings at interest and lends money to savers chiefly for home mortgage loans and may offer checking accounts and other services.
a financial institution that receives savings accounts and pays interest to depositors.
a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates.
a company concerned primarily with providing money, as for short-term loans.
an account to which goods and services may be charged on credit.
a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
cost of credit expressed in dollars and cents.
Annual percentage rate (APR)
cost of credit expressed as a yearly percentage.
a company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions, etc.
an investigation that reveals your income, debts, details about personal life, & how well you have paid debts in the past.
an estimate of the ability of a person or organization to fulfill their financial commitments, based on previous dealings.
size of your capital or personal wealth.
backed up by collateral.
based on person's reputation and a promise to repay.
law restricting the amount of interest that can be charged for credit.
state of legally having been declared unable to pay off debts owed w/ available income.
Club warehouse stores
charge lower prices than grocery stores do.
open 16-24 hrs a day, carries a limited selection of items and are usually more expensive.
Private labeled products
store brand products
how long something lasts.
amount of use a person gets from an item over time and the value a person places on this use.
long-term agreement describing the terms under which property is rented.
funds a renter lets an owner hold in case the rent is not paid or the apartment is damaged.
fees involved in arranging for a mortgage or in transferring ownership of property.
fees paid to a lender and computed as a percentage of a loan
licensing fee paid to a state for the right to use a car.
insurance that pays for bodily injury and property damage.
setting aside income for a period of time so that it can be used later.
account that pays interest, has no maturity date, and from which funds can be withdrawn at any time without penalty.
Money market deposit account (MMDA)
account that pays relatively high rates of interest, requires a minimum balance, and allows immediate access to funds.
savings plan that require savers to leave their funds on deposit for certain periods of time.
period of time at the end of which time deposits will pay a stated rate of interest.
Certificates of deposit
time deposits that state the amount of the deposit, maturity, and rate of interest being paid.
people who have invested in a corporation and own some of its shares of stock.
increase of value of an asset from the time it was bought to the time it was sold.
decrease in value of an asset from the time it was bought to the time it was sold.
Tax exempt bonds
Bonds sold by local and state government; interest paid on the bond is not taxed by the federal government.
bonds issued by the federal government as a way of borrowing money; they are purchased at half the face value and increased every 6 months until full face value is reached.
certificates issued issued by the U.S Treasury in exchange for a minimum amount of $1,000 and maturing in a few days up to 26 weeks.
certificates issued by the us treasury in exchange for minimum amounts of $1,000 and maturing in 2 - 10 years.
certificates issued by the us treasury in exchange for minimum amounts of $1,000 and maturing in 30 years.
person who acts as a go-between for buyers and sellers of stocks and bonds.
Over the counter market
an electronic marketplace for stocks not listed on the organized exchanges.
Stock market indexes
a measurement of a section of the stock market.
an investment program funded by shareholders that trades in diversified holdings and is professionally managed.
Money market fund
is an open-ended mutual fund that invests in short-term debt securities such as US Treasury bills and commercial paper.
company plans that provide retirement income for their workers.
a tax-deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes.
Individual retirement account (IRA)
an investing tool used by individuals to earn and earmark funds for retirement savings.
an individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ are tax-free.
spreading of investments among several different types to lower overall risk.