| A | B |
|---|
| interest | money paid for the use of money |
| time deposit | savings plan usually for a specified amount |
| dividends | money earned from shares of stock |
| savings | putting money away to grow or nonuse of income till later time |
| pension plans | money for retirement |
| stockholders | owners of shares in a company |
| savings bonds | fed. gov't. certificates puchased at less than the face value that will mature to face value in specified amt of time |
| mutual bonds | pools money from many ppl for investment purposes |
| maturity | time that investors are required to leave their money on deposit in time deposit accounts |
| tax exempt bonds | issued tax free by a city or state to raise revenue |
| certificate of deposit | investment in form of a time deposit |
| diversification | spreading investments among diff. alternatiaves |
| stock | part oqnership in assests of a company |
| bond | denotes a loan to the company and becomes their debt |
| voluntary exchange | the way the buyer and seller work out market terms |
| real income effect | lowered buying power when the price of an item rises but income doesn't |
| equilibrium price | price where quantity demanded curve and supply curve intersect |
| utility | power that g or s has to satisfy |
| surplus | amt supplied greataer than demand |
| elasticity | price responsiveness of consumers |
| complementary good | what bread is to butter |
| substitute | you know |
| diminishing returns | longer you buy an item less value it has to you |
| supply | goods and services produced for the marketplace |
| registration fee | annual licensing fee paid to state for the right to drive the car |
| liability insurance | required-covers the other person in an accident |
| leasing | alternative way to finance and drive a car |
| collision insurance | optional insurance used to cover your repairs from an accident |
| uninsured motorist insurance | insurance that covers non insured drivers |
| comprehensive insurance | insurance that covers acts of god |
| closed lease | value of car determined up from before lease is up. |
| open lease | selling price of the car is determined at the end of the lease perios |
| warranty | covers the car from faulty or defective equipment during a certain amt of time |
| depreciation | loss of value |
| title fee | fee paid to transger ownership of car from 1 person to another |
| extended warranty | puchased by the buyer to cover costs beyond dealer's warranty |
| DMV | dept. of motor vehicles |
| residual value | value of a car at the end of the lease if the leasee wants to buy it. |
| principal | amt originally borrowed |
| revolving charge acct. | allows additional purchases from the same store even though previous bill has not been paid. |
| credit | recieving money to buy goods and services in the present with a promise to pay in the future. |
| annual percentage rate | cost of credit expressed as a percentage plus noninterest costs |
| collateral | something of value used to secure a loan |
| installment charges acct. | designed for ppl who wish to charge large purchases of durables w/ payment of interest and principal in equal amts over a period of time |
| truth in lending act | ensures that consumers are informed af costs and conditions of credit |
| mortgage | installment debt owed on a real property like a house |
| regular charge acct. | also called 30 day charge-bill must be paid within 30 days |
| bankruptcy | condition when debtors give up most of what they own to creditors |
| credit risk | relates to person's ability to pay devts |
| debit card | cashless method of purchasing in which funds are transferred electronically from your acct. not credit card. |
| credit limit | max amt of g and s that can be bought against a promis to pay in the future |
| usury law | limits amt of interest that can be charged for credit |
