You Can BANK on This! (Part 2)
Glossary terms from:
A financial institution that provides various products and services to its customers, including checking and savings accounts, loans and currency exchange.
The industry involved with conducting financial transactions. Also, conducting business with a bank, e.g., maintaining a checking or savings account or obtaining a loan.
Monetary or non-monetary gain received because of an action taken or a decision made.
A spending-and-savings plan, based on estimated income and expenses for an individual or an organization, covering a specific time period.
In the context of credit transactions, capacity is one of the Three Cs of Credit. It is an indicator of how creditworthy a prospective borrower is likely to be, as determined by the borrower's current and future earnings relative to current debt. High earnings and low debt, for example, indicate a strong capacity to make payments on the loan in question.
Decision made or course of action taken when faced with a set of alternatives.
Government-issued pieces of metal that have value and are used as money.
People who use goods and services to satisfy their personal needs and not for resale or in the production of other goods and services.
Spending by households on goods and services. The process of buying and using goods and services.
An amount that must be paid or spent to buy or obtain something. The effort, loss or sacrifice necessary to achieve or obtain something.
The money in circulation in any country.
A conclusion reached after considering alternatives and their results.
Reaching a conclusion after considering alternatives and their results.
A graph-like form into which people may enter notations about the costs and benefits of various alternatives; used for assistance in making decisions.
Desires that can be satisfied by consuming a good or service. Economists do not differentiate between wants and needs.
The study of how people, firms and societies choose to allocate scarce resources with alternative uses.
Tangible objects that satisfy economic wants.
Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.
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.
In a credit arrangement, the total amount spent during the billing cycle.
The basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.
Tax in the form of a percent of the cost of a good or service; paid to local and state governments when goods and services are purchased.
To keep money for future use; to divert money from current spending to a savings account or another form of investment.
Disposable income (income after taxes) minus consumption spending.
The condition that exists because human wants exceed the capacity of available resources to satisfy those wants; also a situation in which a resource has more than one valuable use. The problem of scarcity faces all individuals and organizations, including firms and government agencies.
Activities performed by people, firms or government agencies to satisfy economic wants.
Use money now to buy goods and services.
Compulsory payments to governments by households and businesses.
Desires that can be satisfied by consuming or using a good or service. Economists do not differentiate between wants and needs.
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.