Question 1

money

Accepted Answer

anything that serves as a medium of exchange, a unit of account, and a store of value

Question 2

medium of exchange

Accepted Answer

anything that is used to determine value during the exchage of goods and services; buying food with a money

Question 3

barter

Accepted Answer

the direct exchage of one set of goods or sevices for another

Question 4

unit of account

Accepted Answer

a means for comparing the values of goods and services; comparison of $35 jacket at one store and $30 jacket at another store

Question 5

store of value

Accepted Answer

something that keeps its value if it is stored rather than used; piggy bank

Question 6

currency

Accepted Answer

coins and paper bills used as money

Question 7

commodity money

Accepted Answer

objects that have value in themselves and that are also used as money; chicken

Question 8

representative money

Accepted Answer

objects that have value becuase the holder can exchage them for something else of value; silver certificate

Question 9

fiat money

Accepted Answer

money that has value because the government has ordered that it is an acceptable means to pay debts; "legal tender"

Question 10

bank

Accepted Answer

an institution for receiving, keeping, and lending money

Question 11

FDIC (Federal Deposit Insurance Corporation)

Accepted Answer

the government agency that insures customers' deposits if a bank fails;

Question 12

credit card

Accepted Answer

a card entitling its holder to buy goods and services based on the holders's promise to pay for these goods and sevices

Question 13

interest

Accepted Answer

the price paid for the use of borrowed money

Question 14

principal

Accepted Answer

the amount of money borrowed

Question 15

debit card

Accepted Answer

a card used to withdraw money

Question 16

automatic payment

Accepted Answer

The deposit of wages or other income directly into a customer's bank account.

Question 17

savings account

Accepted Answer

a bank account that accumulates interest

Question 18

budget

Accepted Answer

a sum of money allocated for a particular purpose

Question 19

credit

Accepted Answer

An arrangement to receive cash, goods, or services now and pay for them in the future.

Question 20

credit bureau

Accepted Answer

a private firm that maintains consumer credit data files and provides credit information to authorized users for a fee

Question 21

credit rating

Accepted Answer

A measure of a person's ability and willingness to make credit payments on time.

Question 22

collateral

Accepted Answer

a security pledged for the repayment of a loan

Question 23

annual percentage rate

Accepted Answer

the cost of credit expressed as a yearly percentage

Question 24

simple interest

Accepted Answer

the interest computed only on the principal

Question 25

compound interest

Accepted Answer

Interest earned on both the principal amount and any interest already earned.

Question 26

fixed interest rate

Accepted Answer

interest rate that does not change from month to month

Question 27

variable interest rate

Accepted Answer

percentage that a borrower pays for the use of money or credit that moves up or down based on changes in other interest rates

Question 28

check

Accepted Answer

representative money that pulls from your money deposited in a bank

Question 29

checking account

Accepted Answer

A bank or credit union account that allows withdrawals by writing a check.

Question 30

interest rate

Accepted Answer

Percentage of amount borrowed to be added to the amount loaned and paid back

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