chapter one Flashcards
bond
money that is borrowed by a company or government
deposit institution
accept deposit for people and businesses to use in the future
finance
actives involved with saving , investing and using money by individual , businesses and government
financial plan
a formal report with a summary of the current financial situation along with plans for future financial actives
income tax
a tax levied on the income of individuals
inflation
a rise in the general level of prices
liquidity
the ease and speed with which an investment can be converted into cash
money
any item that serves as a method of payment
municipal bond
a debt security issued by a state or local government
Non-deposit institution
Life insurance companies, investment companies, consumer finance companies, mortgage companies, check-cashing outlets, and pawnshops
property tax
tax based on the value of land and buildings
opportunity cost
what you give up by making a choice
sales tax
a state or local tax on goods and services that is collected by the seller
security
an investment instrument issued by a corporation, government, or other organization representing ownership or a debt
source of funds
the inflow of cash that can be used for paying various expenses
