Chapter 1 Flashcards
(18 cards)
Amount of your original deposit will be worth in the future based on earning a specific interest rate over a specific period of time
Future Value
Amount of money you would need to deposit
Present Value
Amount of goods and services people are willing to buy
Demands
Price will/may increase
inflation
The increase of an amount of money due to earn interest or dividends
Time value of money
The study of the decisions that go into making distributing and using goods and services
Economics
Original amount of money on deposit(savings) original amount of money
Principal
Arranging to spend, save and invest money to live comfortably have financial security and achieve goals
Personal financial planning
the ability to easily convert financial assets to cash without loss in value
liquidity
Consists of ways in which people make distribute and use their goods and services
Economy
long term goals
take more than 5 years to achieve
Short term goals
take 1 year or less to achieve
amount of goods and services available for sale
supply
the central banking organization of the U.S, controls money supply
Federal Reserve system
an intangible( a task that a person or a machine performs for you)
services
A series of equal regular deposits
annuity
car is a need
False
a person who purchases and uses goods and services
Consumer
