Finance Flash Cards

Borrower

A person who borrows money to finance purchases or investments, usually with the expectation of repayment.

Demand

Refers to how much of a good or service is wanted by consumers. Demand can be influenced by factors including price and availability, indicating a relationship where higher prices might reduce demand and vice versa.

Availability

This term describes how easy or difficult it is to obtain certain goods or services, which can impact demand and market conditions.

Budget

An organized plan that outlines expected income and expenditures, helping individuals or businesses manage their finances effectively.

Capital

Refers to financial assets like money, property, or resources owned by an individual, family, or business, vital for investment, operations, and growth.

Charity

An organization focused on helping individuals in need, such as the poor, ill, or those with special requirements, often funded through donations.

Checking Account

A bank account that allows for easy deposit and withdrawal of money, typically used for day-to-day transactions and payment of goods and services.

Cost

The monetary value paid for goods and services; this typically represents the worth perceived by consumers and the expenses incurred by providers.

Credit

Money loaned to an individual or business that must be repaid over time, usually with interest. It's a vital tool for financing larger purchases.

Credit Card

A plastic card that allows users to borrow money from a financial institution to make purchases, which must be paid back later, often with interest.

Deposit

Money placed into a bank account (checking or savings) that increases available funds for spending or saving.

Donate

The act of giving money or resources to charitable organizations to support those in need, aimed at fostering social welfare.

Expense

The costs incurred through the purchase of goods or services, which reduce the amount of money available to the spender.

Human Capital:

Encompasses the education, skills, knowledge, experiences, and abilities of an individual, contributing to their value in the job market.

Income

The earnings received in exchange for work or investment, typically measured weekly, monthly, or annually.

Interest

Money paid by borrowers to lenders as a fee for using their funds, usually calculated as a percentage of the borrowed amount.

Labor

Refers both to the act of working (verb) and the collective group of individuals employed by a business (noun), playing a critical role in the production of goods and services.

Lender

An individual or institution that provides funds to borrowers, expecting repayment along with interest.

Planned Spending:

Anticipated expenditures for essential needs (like food and housing) and savings for desired wants (like vacations), aiding financial stability.

Scarcity

A condition where demand exceeds supply, often resulting in shortages that can affect prices and availability of goods and services.

Unplanned Spending:

Expenditures for unexpected items or emergencies (like repairs or sudden illnesses), which can disrupt budget plans.

Wage

Regular payments made to employees, commonly inspired by hours worked, serving as compensation for labor.

Withdrawal

The action of removing money from a savings or checking account, reducing available funds.