Glossary Terms:

U.S. Senate Mulls Over Bankruptcy Legislation

Glossary terms from:
http://www.econedlink.org/e26


Borrow

To receive and use something belonging to somebody else, with the intention of returning or repaying it--often with interest in the case of borrowed money.

Consumers

People who use goods and services to satisfy their personal needs and not for resale or in the production of other goods and services.

Credit

The opportunity to borrow money or to receive goods or services in return for a promise to pay later.

Credit Card

A small, specially coded plastic card issued by a bank, business, etc., authorizing the cardholder to purchase goods or services on credit.

Creditor

A person or company to whom money is owed.

Debt

Money owed to someone else. Also the state or condition of owing money. Can be individual, corporate or government debt.

Equity

Stock, both common and preferred. Also, the value of mortgaged property after accounting for charges against it or money owed.

Incentive

Any reward or benefit, such as money, advantage or good feeling, that motivates people to do something.

Interest

Money paid regularly, at a particular rate, for the use of borrowed money.

Interest Rate

The price paid for using someone else's money, expressed as a percentage of the amount borrowed.

Money

Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.

Opportunity Cost

The second-best alternative (or the value of that alternative) that must be given up when scarce resources are used for one purpose instead of another.

Unsecured Debt

Debt without collateral; credit card debt, for example.

Work

Effort applied to achieve a purpose or result, often for pay; skills and knowledge put to use to get something done; employment at a job or in a position; occupation, profession, business, trade, craft, etc.