Economic and Personal Fiance Unit 3

Goes over basic terms within this unit. We have a quiz instead of of test for this unit so im only going over any important information required to know

Property Rights

Legal protections that give people the right to claim, own, and use their possessions as they choose within the law

Real Property

Fixed property comprising land, the air above, the ground below, and any permanent structures on it

Personal Property

Moveable property or possessions owned by an individual that is not real estate (also known as chattel

Intellecutal Property

Creations of the mind—such as books, movies, music, or inventions—that are legally protected to prevent others from copying them

Market Power

The level of influence a single company has over the market price of a product by controlling its supply, demand, or both

Antitrust Laws

Statutes developed by the government to protect consumers from predatory business practices and ensure fair competition by preventing monopolies.

Subsidy

Financial support given by the government to an individual or business to encourage the production or consumption of a specific good or service

Progressive Tax

A tax structure where the tax rate increases as the taxable amount increases (higher earners pay a larger percentage of their income).

Proportional Tax

A tax structure that takes the exact same percentage of income from everyone, regardless of how much they earn (often called a flat tax).

Regressive Tax

A tax that hits lower-income individuals harder because it takes a larger percentage of their total income than it does from higher earners (e.g., sales tax).

Personal Income Tax

A tax levied by federal, state, or local governments on the annual earnings of individuals and households.

FICA Taxes

Mandatory payroll deductions used to fund federal social insurance programs, specifically Social Security and Medicare.

Excise Taxes

An indirect consumer tax imposed by government entities on specific, non-essential goods and services (e.g., fuel, tobacco, alcohol

Credit Union

• A non-profit, member-owned financial cooperative that typically offers lower loan rates and higher interest rates on deposits.

Commerical Bank

A for-profit financial institution owned by investors that offers a wide variety of services (checking, savings, loans) and is insured by the FDIC.

Checking Account

A highly liquid deposit account designed for frequent transaction use (via debit cards or checks) that typically does not earn interest.

Savings Account

An interest-bearing deposit account held at a financial institution that provides lower liquidity but helps grow money safely over time.

Liduidity

The ease and speed with which an asset or investment can be converted directly into cash without losing its value. [1, 2]

Installment Credit

: A loan in which the borrower receives a lump sum upfront and agrees to make scheduled, periodic payments until the loan is fully repaid (e.g., auto loans, student loans).

Revolving Credit

A flexible line of credit that allows a consumer to borrow money up to a pre-approved limit, repay it, and borrow it again repeatedly (e.g., credit cards).

Unsecured Debt

• Money borrowed without backing or providing any collateral, relying solely on the borrower's creditworthiness (e.g., medical bills, standard credit cards).

Default

The failure to repay a loan according to the terms agreed upon in the credit contract.

Annual Percentage rate (APR)

The total annual rate charged for borrowing money, which includes the base interest rate plus any structural fees or costs associated with the loan.

Fiance Charade

The total dollar amount a consumer pays to use credit, including interest charges and monthly fees on unpaid balances.

Grace Period

A set timeframe during a billing cycle where a cardholder can pay off their new balance in full without triggering any interest charges