Term
| Average Propensity to Consume |
|
Definition
| The percentage of each dollar of income on average, that a person spends on current needs rather than savings. |
|
|
Term
|
Definition
The total value of all terms owned by an individual.
- savings accounts
- stocks
- bonds
- home
- automobiles
|
|
|
Term
|
Definition
| Intangible assets; ex. savings accounts, and securities, that are acquired by some promised future return. |
|
|
Term
|
Definition
| Physical assets; ex. real estate, and automobiles, that can be held for either consumption or investment purposes. |
|
|
Term
| Personal Financial Planning |
|
Definition
| A systematic process that considers important elements of an individual's financial affairs in order to fulfill financial goals. |
|
|
Term
|
Definition
Results that an individual wants to attain, ex.
- buying a home
- building a college fund
- achieving financial independence
|
|
|
Term
|
Definition
| The medium of exchange used as a measure of value in financial transactions. |
|
|
Term
|
Definition
| The amt of transaction recieved from purchasing certain types or quantities of goods and services. |
|
|
Term
|
Definition
| Target dates in the future when certain financial objectives are expected to be completed. |
|
|
Term
| Flexible Benefit (cafeteria) Plans |
|
Definition
| The employer allocates a certain amt of money to each employee, then the employee spends that money for their benefits, accourding to their age, income, etc. |
|
|
Term
|
Definition
| The phase of the economic cycle where real GDP INCREASES until it hits a peak. |
|
|
Term
|
Definition
| The phase of the economic cycle when an expansion ends and a contraction begins. |
|
|
Term
|
Definition
| The phase of the economic cycle when real GDP FALLS. |
|
|
Term
|
Definition
| The phase of the economic cycle when a contraction ends and an expansion begins. |
|
|
Term
|
Definition
| A state of the economy in which the general price level is increasing. |
|
|
Term
| Consumer Price Index (CPI) |
|
Definition
| A measure of inflation based on changes in the ost of consumer goods and services. |
|
|
Term
|
Definition
| The amt of goods and services that each dollar buys at a given time. |
|
|
