| A | B |
|---|
| present value | which is the amount of money you would need to deposit now in order to attain a desired amount in the future. |
| annuity | series of regular deposits |
| future value | the amount an original deposit will be worth in the future |
| principal | the amount of money put into a savings account on which interest is paid. |
| interest | the price that is paid for the use of another's money |
| consumer | a person buys/uses goods or services |
| inflation | the general rise in the level of prices for goods and services over time |
| federal reserve system | the central banking organization of the U S (known as the Fed) |
| values | the beliefs and principles a person conisders important, correct, and desirable |
| liquidity | the ability to easily convert financial resources into cash without a loss in value |
| time value of money | the increase in an amount of money as a result of interest or dividends earned |
| economics | the study of the decisions that go into making, distributing, and using goods and services |
| intermediate goals | takes two to five years to reach |
| long term goals | more than five years to reach |
| short term goals | reach in one year or less |
| opportunity cost | the possibilities that a person gives up when he or she makes one choice instead of another; also known as a trade-off |
| supply | the amount of good and services available for sale |
| demand | the amount of goods and services that people are willing to buy |
