Unit 7 quizs

Protects the seller and the buyer and are written and legally binding

• agreement

• contract

• understanding

• arrangement

Examples: having insurance and making a budget

• being fiscally responsible

• spending recklessly

• ignoring financial planning

• relying on credit cards

Allows people to store, earn, and borrow money

• bank / credit union

• investment firm

• insurance company

• credit card company

You use money to buy things instead of trading/bartering what you grow or make

• money as medium of exchange

• bartering system

• trade and barter

• currency as a commodity

Protects the buyer ONLY and is verbal rather than written making it NOT legally binding

• warranty

• guarantee

• contract

• promise

I know that the $30 cap is worth the same to me going to the movies for $30.

• money as measure of value

• time as a resource

• entertainment value

• cost-benefit analysis

Example: charging more on your credit card than you can pay off in a few months

• being fiscally irresponsible

• being financially savvy

• saving for emergencies

• investing wisely

The amount of money exchanged for a good or service - determined by the interaction of supply and demand

• cost

• value

• price

• expense

Protects the buyer ONLY and are written and legally binding

• guarantee

• warranty

• contract

• agreement

The price at which consumers are willing to pay and producers are willing to sell

• equilibrium price

• market price

• fixed price

• variable price