Basic Personal Finance Terms Flashcards
1
Q
What is debt?
A
Something that is owed.
2
Q
What is a cost?
A
An amount to buy a product/ service.
3
Q
What is repossession?
A
To retake possession of something.
4
Q
What is bankruptcy?
A
Not having enough money to repay outstanding debts.
5
Q
What is a credit rating?
A
Estimate of the ability of a person to fulfil financial commitments.
6
Q
What is solvent?
A
The ability to meet day by day expenditure.
7
Q
What is inflation?
A
When the price of goods rise, so the purchasing power of the currency falls.
8
Q
What is expenditure?
A
The amount of money needed to cover all of your expenses.
