Financial Terms Flashcards

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Currency

Back

bills and coins circulating in the economy

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Money Supply

Back

the total amount of money in the economy

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Purchasing Power

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the value of a unit of money in terms of what it can buy

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Asset

Back

anything owned to which a market value can be assigned

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Liquid Assets

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items of value that can be used as cash or easily converted into cash

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Bank

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a business whose main purpose is to receive deposits and make loans

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Loan

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a transaction in which a lender gives money to a borrower, who agrees to repay the money at some point in the future

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Credit

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an arrangement that allows a person to buy something with borrowed money and pay for it later or over time

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Financial Institution

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a firm that deals mainly with money, as opposed to goods and services; examples include banks and stock brokerages

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Saving

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setting aside a portion of income for use in the future