Economics - Unit 2 Vocabulary Quiz - Personal Finance Part 1

A person or organization that uses a product or a service

• caveat emptor
• consumer
• producer
• tax payer

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

• credit
• overdraft
• debt
• grant

An obligation of repayment owed by one party (the borrower) to a second party (the lender); in most cases this includes repayment of the original loan amount plus interest

• credit
• grant
• overdraft
• debt

A system by which goods and services are produced and distributed

• financial literacy
• branding
• economy
• zero-based budget

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

• financial literacy
• financing
• envelope system
• branding

Charge for borrowed money generally defined as a percentage; money paid to savers and investors by financial institutions, governments, or corporations for the use of their money (such as a 2% return on money held in a savings account)

• interest rate
• annual fee
• interest
• debt snowball

Temporary borrowing of a sum of money

• overdraft
• grant
• scholarship
• loan

The decisions which an individual or a family unit is required to make to obtain, budget, save, and spend money over time

• envelope system
• marketing
• personal finance
• branding

Interest paid on interest previously earned; credited daily, monthly, quarterly or semiannually

• compound interest
• simple interest
• annual percentage rate (APR)
• budget

Five hundred dollars in readily available cash to be used only in the event of an emergency; the goal of the First Foundation

• sinking fund
• zero-based budget
• emergency fund
• debt snowball