EXAM REVIEW: DEFINITIONS Personal Finance

Economics a. Amount of money to be paid by a person before insurance benefits are assessed. b. An obligation for funds borrowed. c. The study of production, distribution & consumption of goods & services. d. The cost required in exchange for some benefit or service.

C. The study of production, distribution & consumption of goods & services.

Deflation a.An obligation for funds borrowed. b.The study of production, distribution & consumption of goods & services. c.The cost required in exchange for some benefit or service. d.Decrease in the general price level of goods & services typically caused by a reduction in the supply of money.

Equilibrium Price a. Cost of an insurance policy. b. Exchange of money for the purpose of a future gain. c. Point at which quantity demanded equals the quantity supplied. d. Investment in society to improve people & circumstances that could not create the investment themselves.

c. Point at which quantity demanded equals the quantity supplied.

Disposable Income a. Amount remaining to spend or save after all financial obligations are satisfied. b. Cost of an insurance policy. c. Exchange of money for the purpose of a future gain. d. Point at which quantity demanded equals the quantity supplied.

a. Amount remaining to spend or save after all financial obligations are satisfied.

Debts a. Amount of money to be paid by a person before insurance benefits are assessed. b. An obligation for funds borrowed. c. The study of production, distribution & consumption of goods & services. d. The cost required in exchange for some benefit or service.

b. An obligation for funds borrowed.

Budgeting a. Point at which quantity demanded equals the quantity supplied. b. Investment in society to improve people & circumstances that could not create the investment themselves. c. Amount of a deposit into a retirement account. d. Process of managing income & expenses to accomplish a specific purpose.

Expenses a. Amount of money to be paid by a person before insurance benefits are assessed. b. An obligation for funds borrowed. c. The study of production, distribution & consumption of goods & services. d. The cost required in exchange for some benefit or service.

Investment a. Amount remaining to spend or save after all financial obligations are satisfied. b. Cost of an insurance policy. c. Exchange of money for the purpose of a future gain. d. Point at which quantity demanded equals the quantity supplied.

c. Exchange of money for the purpose of a future gain.

Portfolio a. Decrease in the general price level of goods & services typically caused by a reduction in the supply of money. b. Financial approach to calculate past, current & future values. c. Group of financial vehicles held by an individual. d. Amount remaining to spend or save after all financial obligations are satisfied.

c. Group of financial vehicles held by an individual.

Contribution a. Point at which quantity demanded equals the quantity supplied. b. Investment in society to improve people & circumstances that could not create the investment themselves. c. Amount of a deposit into a retirement account. d. Process of managing income & expenses to accomplish a specific purpose.

c. Amount of a deposit into a retirement account.

Premium a. Cost of an insurance policy. b. Exchange of money for the purpose of a future gain. c. Point at which quantity demanded equals the quantity supplied. d. Investment in society to improve people & circumstances that could not create the investment themselves.

a. Cost of an insurance policy.

Deductible a. Amount of money to be paid by a person before insurance benefits are assessed. b. An obligation for funds borrowed. c. The study of production, distribution & consumption of goods & services. d. The cost required in exchange for some benefit or service.

a. Amount of money to be paid by a person before insurance benefits are assessed

Philanthropy a. Point at which quantity demanded equals the quantity supplied. b. Investment in society to improve people & circumstances that could not create the investment themselves. c. Amount of a deposit into a retirement account. d. Process of managing income & expenses to accomplish a specific purpose.

b. Investment in society to improve people & circumstances that could not create the investment themselves.

Time Value of Money a. The study of production, distribution & consumption of goods & services. b. The cost required in exchange for some benefit or service. c. Decrease in the general price level of goods & services typically caused by a reduction in the supply of money. d. Financial approach to calculate past, current & future values.