Personal Finance Ch 1

A person or business that offers loans at extremely high interest rates

• loan shark
• creditor

A debt evidenced by a "note" which specifies the principal amount, interest rate and date of repayment

• bank fee
• loan

A person or organization that uses a product or service

• borrower
• consumer

A system by which goods and services are produced and distributed

• assets
• economy

An obligation of repayment owed by one party to a second party

• debt
• ownership

A fee paid by a borrower to the lender for the use of borrowed money

• bills
• interest

The granting of a loan and the creation of debt; any form of deferred payment

• credit
• annual fee

The knowledge and skillset necessary to be an informed consumer and manage finances effectively

• financial literacy
• budgeting

All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. 

• personal finance
• currency

A period of temporary economic decline during which trade and industrial activity are reduced; generally identified by a fall in gross domestic product

• market economy
• recession