Economics Vocabulary II

What is the term for a model that shows the exchange of money in all its forms between households, businesses, government, and private financial institutions?

• circular flow of economics

• supply and demand model

• market equilibrium model

• fiscal policy model

What is a medium of exchange, where value may be based on scarce resources or consumer confidence?

• money / currency

• gold

• barter system

• cryptocurrency

What is the term for an amount of money to a business in exchange for goods and services?

• payment

• loan

• investment

• debt

What is an item that can be bought and sold, for example, a lawnmower?

• good

• service

• idea

• emotion

What is active labor that can be bought or sold, for example, mowing a lawn?

• service

• product

• good

• commodity

What is the term for an amount of money to a household in exchange for human resources?

• income

• expense

• debt

• investment

What are banks and credit unions that receive deposits and make loans, encourage saving and investing by paying interest on deposits, and help provide financial capital to people and businesses to start or grow businesses?

• private financial institution

• government agency

• non-profit organization

• investment firm

What is an amount of money an individual or business lends to a private financial institution in exchange for an interest payment?

• deposit

• loan

• investment

• savings

What is an amount of money given to a borrower for a set period of time, after which the money must be paid back plus the interest?

• loan

• gift

• grant

• donation

What is a level of reliability that a borrower will repay a loan, which usually determines the amount of interest on the loan?

• credit

• collateral

• liability

• equity