economy testweek 2

Children’s savings accounts

Often a higher interest rate and meant for children

Capital saving accounts

Involve large amounts of money being saved in account

Deposit savings accounts

Has less access but is more secure and offers higher interest rates (ideal for emergency funds or future goals)

Purchasing power

value of money in terms of getting you stuff

Yield

The return of the amount invested or the income generate by an investment over a specific period distinct from total return which includes price changes

Investment accounts

You can convert your savings into investments, such as company shares

Absolute change

The direct numerical difference (new-old) showing the AMOUNT of increase of decrease

Relative change

Expresses change as a percentage or the rate compared to the original

Percentage points

The absolute difference between two percentages, to clarify changes in rates or proportions, preventing confusion with relative percentage changes

Mortgage loan

A loan with a house as security

Loan amount

Amount you can borrow

Instalment amount

Amount you must pay back per month

Instalment buying

With installed payment and gives immediate disposable use, often for specific purchases

Continuous credit

An agreement where you can take out loans automatically without having to ask for permission every single time, that automatically ads to your repayments monthly

Overdrawn

When you have a negative balance in your bank

Concrete market

Place where suppliers and consumers meet

Abstract market

Total demand and supply of a good or service, the suppliers and consumers don’t actually meet.

Demand curve

Shows the connection between demand and price (sloping downwards)

Willingness to pay

Maximum price that consumers are prepared to pay

Supply curve

Shows the connection between the price and quantity sellers are willing to supply (sloping upwards)

Willingness to supply

Minimum price that suppliers ask for their product

Market

Place where suppliers and consumers find each other (virtually)

Equilibrium price

Market price which matches both the quantity demand (consumers) and the supply willing to provide (producers)

Equilibrium quantity

Quantity supplied and demanded at the equilibrium price

Supply of labour

Consists of people who have paid jobs or are looking for work

Consumers of labour

Enterprises and non-commercial organisations (institutions, hospitals)

Demand for labour

Jobs that are filled by self employed people and employees

Vacancies

Unfilled jobs

Labour productivity

The production (value) per person in a certain period

Labour productivity 2

Production (value) divided by employment

Compound interest

The interest you get on top of your old interest if you leave your money in a savings account