Focus on Economic Data: U.S. Consumer Price Index, November 19, 2008
Glossary terms from:
A financial institution that provides various products and services to its customers, including checking and savings accounts, loans and currency exchange.
Monetary or non-monetary gain received because of an action taken or a decision made.
An individual who has received and used something belonging to somebody else, with the intention of returning or repaying it--often with interest in the case of borrowed money.
Any activity or organization that produces or exchanges goods or services for a profit.
Resources and goods made and used to produce other goods and services. Examples include buildings, machinery, tools and equipment. In the context of credit transactions, capital 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 financial assets and net worth.
Consumer Price Index (CPI)
A price index that measures the cost of a fixed basket of consumer goods and services and compares the cost of this basket in one time period with its cost in some base period. Changes in the CPI are used to measure inflation.
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.
A sustained decrease in the average price level of all the goods and services produced in the economy.
The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.
A severe, prolonged economic contraction.
The central bank of the United States. Its main function is controlling the money supply through monetary policy. The Federal Reserve System divides the country into 12 districts, each with its own Federal Reserve bank. Each district bank is directed by its nine-person board of directors. The Board of Governors, which is made up of seven members appointed by the President and confirmed by the Senate to 14-year terms, directs the nation's monetary policy and the overall activities of the Federal Reserve. The Federal Open Market Committee is the official policy-making body; it is made up of the members of the Board of Governors and five of the district bank presidents.
Tangible objects that satisfy economic wants.
Accommodation in houses, apartments, etc.
Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.
A rise in the general or average price level of all the goods and services produced in an economy. Can be caused by pressure from the demand side of the market (demand-pull inflation) or pressure from the supply side of the market (cost-push inflation).
A practice or arrangement whereby a company provides a guarantee of compensation for specified forms of loss, damage, injury or death. People obtain such guarantees by buying insurance policies, for which they pay premiums. The process allows for the spreading out of risk over a pool of insurance policyholders, with the expectation that only a few policholders will actually experience losses for which claims must be made. Types of insurance include automobile, health, renter's, homeowner's, disability and life.
Money paid regularly, at a particular rate, for the use of borrowed money.
The price paid for using someone else's money, expressed as a percentage of the amount borrowed.
The quantity and quality of human effort available to produce goods and services.
One who lends; may be an individual or a business.
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.
The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.
The weighted average of the prices of all goods and services in an economy; used to calculate inflation.
People and firms that use resources to make goods and services.
Natural resources, human resources, capital resources and entrepreneurship used to make goods and services.
The amount of goods and services that a monetary unit of income can buy.
The basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.
The chance of losing money.
Activities performed by people, firms or government agencies to satisfy economic wants.
Use money now to buy goods and services.
The number of people without jobs who are actively seeking work.
Value of Money
The ability of money to buy goods and services. A wide variety of items has been used as money. Money need not have any intrinsic value. It is people's willingness to accept it that gives it value.
Payments for labor services that are directly tied to time worked, or to the number of units of output produced.
People employed to do work, producing goods and services.