Kirk_Test.txt

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Author:
shortstuff01
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66240
Filename:
Kirk_Test.txt
Updated:
2011-02-14 03:28:15
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Economics
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Ch3, 4, 6
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  1. Consumer
    any person or group that buys or uses goods and services to satisfy personal needs and wants
  2. Disposable Income
    income remaining for a person to spend or save after all taxes have been paid
  3. Discretionary Income
    money income a person has left to spend on extras after nessesities have been bought
  4. Rational Choice
    choosing the alternative that has the greatest value from among compareable quality products
  5. Competative Advertising
    advertising that attampts to persuade consumers that a product is different from and superior to any other
  6. Informative Advertising
    advertising that benefits consumers by giving info about a product
  7. Bait & Switch
    ad that attracts consumers w/a low priced product, then tries to sell them a higher-priced product
  8. Comparison Shopping
    getting info on the types and prices of product available from diff stores and co.'s
  9. Warranty
    promise made by a manufacturer or a seller to repair or replace a product w/in a certain time period if it is found to be faulty
  10. Brand Name
    word pic or logo on a product that helps consumers distinguish it from similar products
  11. Generic Brand
    general name for a product rather than a specific brand name given by the manufacturer
  12. Consumerism
    movement to educate buyers about the purchases they make & to demand better+safer products from manufacturers
  13. Ethical Behaviour
    action in accordance w/ moral+ethical convictions about right and wrong
  14. Good consumers keep their eyes open in _________
    The market
  15. Truth in advertising is the ___, but the ability to enforce is _______, so consumers are forced to be _____
    • law
    • limited
    • wary
  16. Oprah
    most powerful woman in america
  17. Ralph Nader
    • consumer advocate
    • dell
  18. Credit
    receipt of money either directly or indirectly to buy goods + services in the present w/ the promise to pay for them in the future
  19. Principal
    amount of money originally borrowed in a loan
  20. Interest
    • amount of money the borrower must pay for the use of someone elses money
    • Cost to borrow
  21. Installment Debt
    type of loan repaid w/ equal payments or installments over a specific period of time
  22. Durable Goods
    manufactured items that have a life span longer than 3yrs
  23. Mortgage
    installment debt owed on houses, buildings, or land
  24. Commercial Bank
    • bank whose main functions are to accept deposits, lend money, + transfer funds among banks individuals, & businesses
    • profit driven
    • prefer business customers
    • operated by professional bankers
    • make higher risk loans
  25. Savings & Loan Association (S&L)
    • depository institution that accepts deposits+lends money
    • makes maily home mortgage loans
    • most have dissapeared b/c of deregulation
  26. Savings Bank
    depository institution originally set up to serve small savers overlooked by commercial banks
  27. Credit Union
    • depository institurion owned+operated by its members to provide savings accounts +low-interest loans only to its members
    • not for profit
    • less overhead
    • run by fewer professionals
  28. Finance Company
    • co that takes over contracts for installment debts from stores + adds a fee for collecting the debt; a consumer finance co makes loans directly to consumers at high rates of interst
    • lenders of last resort
  29. Charge Account
    credit extended to a consumer allowing the consumer to buy goods+services from a perticular co & to pay for them later
  30. Credit Card
    • credit device that allows a person to make purchases to many kinds of stores restaurants & other businesses w/o paying cash
    • borrowing money from a bank or store
  31. Finance Charge
    cost of credit expressed monthly in $ and cents
  32. Annual Percentage Rate (APR)
    cost of credit expressed as a yearly %
  33. Credit Bureau
    private business that investigates a person to find out the risk involved in lending money to that person
  34. Credit Check
    investigation of a persons income current debts personal life and past history of borrowing money and repaying debts
  35. Credit Rate
    rating of the risk involved in lending money to a specific person or business
  36. Collateral
    • something of value that a borrower lets the lender claim if a loan isnt repaid
    • required on large or risky loans
  37. Secured Loan
    loan that is backed up by collateral
  38. Unsecured Loan
    • loan guaranteed only by a promise to repay it
    • usually have higher rates of interest
  39. Usury Law
    law restricting the amount of interest that can be charged for credit
  40. Bankruptcy
    trhe inability to pay debts based on income recieved
  41. Key to debt
    assets>liabilities
  42. Mortgage Loan
    simplest type of loan (15-30yr loan)
  43. Debit Card
    using your money except overdraft becomes a loan
  44. Savings
    setting aside income for a period of time so that it can be used later
  45. Intrest
    payment people receive when they lend money or allow someone else to use their money
  46. Passbook Savings Account
    account for which a depositor recieves a booklet in which deposits withdrawls & intrest are recorded
  47. Statement Savings Account
    acocunt simlar to a passport savings account except that the depositer recieves a monthly statement showing all transactions
  48. Money Market Deposit Account
    account that pays relatively high rates of interest requires a minimum balance and allows immediate access to money
  49. Time Deposits
    savings plans that require savers to leave their money on deposit for certain periods of time
  50. Maturity
    period of time at the end of which time deposits will pay a stated rate of interest
  51. Certificates of Deposits
    time deposits that state the ammount of the deposit maturity and rate od interest being paid
  52. Stockholders
    ppl who have invested in a corp & own some of its stock
  53. Capital Gain
    increase value of an asset from the time it was bought to the time it was sold
  54. Capital Loss
    decrease in value of an asset or bond from the time it was bought to the time it was sold
  55. Tax-exempt Bonds
    bonds sold by local and state gvts interet paid on the bond isnt taxed by the fed gvt
  56. Savings Bonds
    bonds issued by the fed gvt as a way of borrowing money they are purchased at half the face value &increased every 6mo until full face value is reached
  57. Treasury Bills
    certificates issued by the U.S. Treasury in exchange for min amounts of $1,000 and maturing in 3mo-1yr
  58. Treasury Notes
    certificates issued by the U.S. Treasury in exchange for min amounts of $1,000 and maturing in 1-10yrs
  59. Treasury Bonds
    certificates issued by the U.S. Treasury in exchange for min amounts of $1,000 and maturing in 10 or more yrs
  60. Broker
    • person who acts as a go-between for buyers and sellers of stocks and bonds
    • those who advise profit on the purchasing of stocks and bonds
  61. Over-the-counter Market
    electronic purchase and sale of stocks and bonds often of smaller co.'s which takes place outside the organized stock exchanges
  62. Mutual Fund
    • investment co. that pools the money of many individuals to buy stocks bonds or other investments
    • grouping securites in an effort to limit risk
  63. Money Market Fund
    type of mutual fund that uses investors money to make short term loans to businesses and banks
  64. Pension Plans
    co. plans that provide retirement income for their workers
  65. Keogh Plan
    retirement plan that allows self-employed individuals to save a max of 15% of thier income up to a specified amount each yr & to deduct that amount from thier yrly taxable income
  66. Individual Retirement Account (IRA)
    private retirement plan that allows individuals or married couples to save a certain amount of untaxed earnings per yr w/ the interest being tax-deferred
  67. Roth IRA
    private retirement plan that taxes income before its saved but which doesnt tax interest on that income when funds are used upon retirement
  68. Diversification
    • spreading of investments amond several diff types of accounts to lower overall risk
    • key to investments
  69. 5 Types of Consumer Investment
    • Savings-low risk low return
    • Time deposits-limits liquidity increase return (CD's)
    • Insurance-hedge againstt deaths gambles on ones demise
    • Bonds-loaning money to corp or govts
    • Stock-ownership in a corp.
  70. Demand Deposits
    checking accounts allowing you access to your money upon demand
  71. Government Securities
    savings bonds t-bills t-notes

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