Consumer Studies Notes

A collection of vocabulary terms related to consumer studies, covering key concepts of interest, inflation, and quality assurance.

Quality Assurance

The process aimed at ensuring products meet required standards and customer needs.

Simple Interest

Interest calculated only on the principal amount borrowed or invested.

Compound Interest

Interest calculated on the principal amount and also on accumulated interest.

Inflation

The continuous increase in the prices of goods and services, decreasing the purchasing power of money.

Inflation Rate

The percentage increase in prices of goods and services in a year.

Fixed Interest Rates

An interest rate that remains the same for the full term of a loan, providing predictability.

Variable Interest Rates

An interest rate that fluctuates based on market conditions, affecting loan repayments.

Consumer Price Index (CPI)

A measure used to calculate the inflation rate based on the average price changes of a basket of goods.

Repo Rate

The rate at which the central bank lends money to commercial banks, influencing interest rates in the economy.

Disposable Income

The amount of money available for spending and saving after income taxes have been paid.