ECONOMICS Year in review

Market economy – economic system in which the people, rather than the government, own the resources and run the business Mixed economy – an economy system that has characteristics of a market and a command economy Command economy – government owned

Demand – the quantity of a good ofr service that consumers are will and able to buy at various prices during a given time period. Supply – the quantity of a product that producers are will and able to make available for sale at various prices over a given time period.

Production – the creation of goods and services Resources – things that are used to create other goods and services.

Endorsement – your signature on the back of a check, acknowledging that you received the funds of transferred your right to the funds to someone else Automatic withdrawal – a bill paying arrangement in which your bank removes money from your account at a specified time and sends it to a company to pay your bill

Overdrawing – writing a check for more money than is deposited in your checking account Debit card – card that transfers funds electronically from your checking account to the store’s account to pay for a purchase PIN – your secret number that identifies you to an ATM as the owner of the ATM card

Credit – the ability to borrow money in return for a promise of future repayment Budget –a plan for dividing income among spending and saving options Money order – a check that draws on the money of the bank or other financial business that issued it. Example: You pay the bank or currency exchange and they issue one of their checks

Wire transfer – electronically moves money from an account in one bank to an account in a different bank. Safe deposit box – boxes with individual locks that you may rent from a bank

Traveler’s checks – checks that you pay for in advance and if lost or stolen the company that you bought them from replaces them Cashiers check – a bank’s own personal check signed by the bank’s cashier

Points – percent of the amount of the loan Liability insurance – covers the other guy. In Illinois, a car owner is required to have this. Implied warranty – if a seller sells a new product without a written warranty this warranty still covers the product.

Lien - When a creditor or bank has the right to sell the mortgaged or collateral property of those who fail to meet the obligations of a loan contract.creditorbankmortgagedcollateral Lease – a rental agreement Policy – insurance contract Premium – regular payment required to purchase insurance.

Appraisal – expert’s determination of the value of a piece of property. Comprehensive insurance – protects your car against fire and theft Claim – formal request for payment from the insurance company when you suffer a loss

Deductible - The amount you pay for a loss before the insurance company pays anything Replacement cost – the cost of replacing the item, regardless of market value Collision insurance – covers your own car when in an accident that was your fault.

Certified check – same as a cashiers check except that it is also stamped by the bank Points – percent of the amount of the loan APR – the statistic that is most helpful in comparing different credit plans

APR -(Annual percentage rate) the statistic that is most helpful in comparing different credit plans. 401k – a tax deferred retirement savings plan offered to employees by their employer.