Chapter 1-Financial Terms Flashcards

Front

Anything that is owned by an individual, including money in the bank or investments

Back

Asset

Front

The granting of a loan and the creation of debt; any form of deferred payment

Back

Credit

Front

Money owed to another person or company

Back

Debt

Front

The cost of goods or services; money paid out

Back

Expense

Front

The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively

Back

Financial Literacy

Front

The additional cost a lender charges for borrowing their money

Back

Interest

Front

The percentage of principal charged by the lender for use of its money

Back

Interest Rate

Front

Financial debts or obligations

Back

Liability

Front

Person or entity that charges borrowers interest rates above an established legal rate

Back

Loan Shark

Front

The dollar value of a person’s liabilities is larger than the value of their assets

Back

Negative Net Worth