buisness revise Flashcards
(41 cards)
after someone has paid for their expenses what is the remaining income known as
disposable income
variable tax means
the more you earn the more you pay
where a currency is described as weak this means that
there is a low demand
strong exchange rates for a country can lead to
an increase in local employment
the advertised return from a savings account is known as
nominal interest
What can bad debt lead to?
Business failure
What are those struggling with debt repayments particularly exposed to?
Decreases in government spending
What do you call the rate of increase in the prices we pay for goods and services?
Inflation
What is the term used to describe inflation where there is an increased demand for goods and services, but the supply cannot keep up?
Demand pull
What do you call the amount borrowed at the start of a loan?
Principal
What type of interest rewards savers?
High interest
Why are interest rates used to curb inflation?
Because an increase in interest rates encourages saving
What do you call the study of changes in the social make up of society?
Demographics
What does it mean when a currency is described as being ‘strong?
High demand for it
What happens when there is weak currency in a country?
Drives down employment and decreases the gross domestic product (GDP)
What does GDP stand for?
Gross domestic product
How old do you have to be to borrow money from a financial institution?
18
What kind of age group is most comfortable taking risks?
Young person
What do you call a UK citizen’s right to live in the UK?
Legal right
What forms the basis of our economic system?
Money
What is the main indirect tax in the UK?
VAT
What does VAT stand for?
Value Added Tax
What is the source of most of the government’s spending money?
Income tax
After someone has paid for their expenses, what is the remaining income known as ?
Gross income
