Financial Literacy Vocab Quiz

Vocab Quiz Study Guide

The equation for wealth is

assets - liabilities

the net amount of financial value a person has after subtracting liabilities

net worth

Savers have

future time preferences

A/an is the cost of something, or the amount of money a person has to pay to get or do something

expense

is the amount of money that is paid in exchange for using someone else's money

interest

what are two types of traditional financial institutions

banks and credit unions

Alternative financial institutions

check cashers, currency exchanges, and payday lenders

inflation is

an economic process in which the price of goods and service rises over time

is a form of online, encrypted currency that is not connected to a bank account or credit card and allows users to make purchases anonymously

cryptocurrency

when choosing a savings tool, it is important to consider how quickly the money can be accessed if you need it, otherwise known as

liquidity

addresses consumers' needs and communicates retailers' rules regarding issues like refunds, returns, and replacements

customer service