Financial Concepts and Terms

Front

Sources of income

Back

wages, rentals, interest, capital, profits, investments, entrepreneurship

Front

Exemption (aka an allowance) and how does it work

Back

allowance is used to reduce amount of taxed income

Front

Liquidity—what does it mean; what products are liquid

Back

the degree of ease in which assets can be sold

Front

Gift cards and how they work

Back

closed loop system and open loop system

Front

Discretionary income or budget surplus

Back

not allocated for food or shelter

Front

Money orders

Back

A money order is a payment order for a pre-specified amount of money and is purchased at different types of stores – it is used like a check.

Front

Why does the U.S. currency have value even though it is not tied to a commodity

Back

there is a belief that money has value and therefore is accepted

Front

Opportunity cost

Back

next best alternative – it is what is given up when a choice is made.

Front

Who is hurt the most and the least with inflation

Back

most hurt are lenders (banks) and people living on a fixed income. Least hurt are those who owe large amounts of money.

Front

Role of the Treasury Department

Back

collects taxes, prints money, issues treasury bonds