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Economics CP- Virtual SC final exam- vocab
Questions and Answers
banks
Ans: Financial institutions that accept deposits and make loans
borrower
Ans: Someone who receives something with a promise to return it or its
equivalent
budget
Ans: an estimate of income and expenditure for a set period of time.
business cycle
Ans: Alternating periods of economic expansion and economic recession
capitalism
Ans: An economic system based on private property and free enterprise.
circular flow of finance
Ans: Money flows to workers in the form of wages, and money flows
back to firms in exchange for products.
collateral
Ans: something pledged as security for repayment of a loan, to be
forfeited in the event of a default.
competition
Ans: the struggle among producers for the dollars of consumers
consumer
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Ans: A person who purchases goods and services for personal use
Consumer Price Index (CPI)
Ans: a measure of the overall cost of the goods and services bought by a
typical consumer
Consumer sovereignty
Ans: the power of consumers to decide what gets produced
Credit (collateral, creditor, borrower, loan, finance charge, and
interest)
Ans: -a contractual agreement in which a borrower receives something
of value now and agrees to repay the lender at some later date with
consideration, generally with interest. Credit also refers to an accounting
entry that either decreases assets or increases liabilities and equity on
the company's balance sheet.
-a person, bank, or other enterprise that has lent money or extended
credit to another party.
-is any fee representing the cost of credit, or the cost of borrowing. It is
interest accrued on, and fees charged for, some forms of credit. It
includes not only interest but other charges as well, such as financial
transaction fees.
-the charge for the privilege of borrowing money, typically expressed as
annual percentage rate (APR). Interest can also refer to the amount of
ownership a stockholder has in a company, usually expressed as a
percentage.
Credit cards
Ans: means of access to preapproved lines of credit granted by a bank
or finance company
credit score
Ans: A rating used by credit reporting companies to help lenders decide
whether and/or how much credit can be extended to a borrower.
credit union
© 2025 All rights reserved
Economics CP- Virtual SC final exam- vocab
Questions and Answers
banks
Ans: Financial institutions that accept deposits and make loans
borrower
Ans: Someone who receives something with a promise to return it or its
equivalent
budget
Ans: an estimate of income and expenditure for a set period of time.
business cycle
Ans: Alternating periods of economic expansion and economic recession
capitalism
Ans: An economic system based on private property and free enterprise.
circular flow of finance
Ans: Money flows to workers in the form of wages, and money flows
back to firms in exchange for products.
collateral
Ans: something pledged as security for repayment of a loan, to be
forfeited in the event of a default.
competition
Ans: the struggle among producers for the dollars of consumers
consumer
© 2025 All rights reserved
, 2 | Page
Ans: A person who purchases goods and services for personal use
Consumer Price Index (CPI)
Ans: a measure of the overall cost of the goods and services bought by a
typical consumer
Consumer sovereignty
Ans: the power of consumers to decide what gets produced
Credit (collateral, creditor, borrower, loan, finance charge, and
interest)
Ans: -a contractual agreement in which a borrower receives something
of value now and agrees to repay the lender at some later date with
consideration, generally with interest. Credit also refers to an accounting
entry that either decreases assets or increases liabilities and equity on
the company's balance sheet.
-a person, bank, or other enterprise that has lent money or extended
credit to another party.
-is any fee representing the cost of credit, or the cost of borrowing. It is
interest accrued on, and fees charged for, some forms of credit. It
includes not only interest but other charges as well, such as financial
transaction fees.
-the charge for the privilege of borrowing money, typically expressed as
annual percentage rate (APR). Interest can also refer to the amount of
ownership a stockholder has in a company, usually expressed as a
percentage.
Credit cards
Ans: means of access to preapproved lines of credit granted by a bank
or finance company
credit score
Ans: A rating used by credit reporting companies to help lenders decide
whether and/or how much credit can be extended to a borrower.
credit union
© 2025 All rights reserved
