Unit 4 - Econ Vocab Quest

Jamal wants to buy a soda from a vending machine. The price is $1.50, so he inserts a $1 coin and two quarters. The machine accepts the coins and gives him the soda.

What is being used as a medium of exchange in this situation, generally in the form of coins and banknotes?

Lena opens an account at her local bank. She deposits her paycheck, applies for a small loan to buy a car, and asks about ways to invest her savings. The bank helps her with all of these services.

What term best describes the business or services being provided in this situation?

Carlos is creating a plan to manage his monthly income. He sets aside money for rent, groceries, and savings, invests a portion in stocks, and tracks how much he spends each week to stay on budget.

What term best describes the activities Carlos is doing?

Emily takes out a loan from the bank to buy a new laptop. The bank tells her she will need to pay back the loan plus an additional percentage of the amount she borrowed over time.

What is the term for this additional cost of borrowing money?

Jasmine buys a new phone using a store card, even though she doesn’t have enough money to pay for it right now. She agrees to pay the store back over the next few months.

What is the term for this ability to buy now and pay later?

Marcus uses some of his savings to buy shares in a technology company. He hopes that as the company grows, the value of his shares will increase and he will earn a profit.

What is the term for this act of putting money into something with the expectation of making a profit?

A company owns several delivery trucks, a warehouse, and some stocks in other businesses. All of these have economic value and could be sold for cash if needed.

What is the term for these valuable items the company owns?

Sarah took out a loan to buy a car, and she still needs to pay back the bank over the next few years. She also has some unpaid bills from last month.

What is the term for the money Sarah owes to others?

David creates a detailed plan for the next month that lists how much money he expects to earn and how much he plans to spend on rent, food, and entertainment.

What is the name of this type of financial plan?

Olivia invested in a new startup, but the company’s value dropped because of unexpected market changes, causing her investment to lose value.

What term describes the possibility of losing money or value in this situation?