2.3 The Economic Climate Of Business Flashcards
1
Q
What is the economy?
A
The economy is made up of millions of individual consumers, many thousands of businesses and governments. All take decisions on what to buy and produce.
2
Q
What are consumers?
A
Consumers are individuals who buy goods and services from businesses.
3
Q
Whats the economic climate?
A
The economic climate describes the state of key factors within a country such as the level of goods and services produced and the number of jobs available.
4
Q
What are interest rates?
A
Interest rates refer to the cost of borrowing money or the reward for saving money, expressed
as a percentage.
5
Q
Inflation
A
a general increase in prices and fall in the purchasing value of money.
6
Q
What are exchange rates.
A
the value of one currency for the purpose of conversion to another.
