Ch 2 Managing Money – Learning the Language

What is a resource with economic value that a person, company, or country owns with the expectation that it will provide a future benefit? Cash, stock, buildings, and copyrights are all different kinds of this.

• Asset

• Liability

• Expense

• Revenue

What is a financial summary of anticipated income and expenditures?

• Budget

• Invoice

• Receipt

• Contract

What is the income you have available to use for spending or saving?

• Cash Flow

• Gross Income

• Net Worth

• Liabilities

What do you call a person or organization that uses a commodity or service?

• Consumer

• Producer

• Supplier

• Manufacturer

What is the process of weighing the pros and cons of a decision before you make it?

• Cost Benefit Analysis

• Impulse Buying

• Brainstorming

• Procrastination

What are unexpected and sometimes hidden fees that companies charge for a service that costs them little or nothing to provide?

• Junk Fees

• Premium Charges

• Core Service Fees

• Mandatory Taxes

What is the highest valued alternative not taken in an economic decision?

• Opportunity Cost

• Marginal Benefit

• Sunk Cost

• Fixed Cost

What is the value your money generates in the market called?

• Purchasing Power

• Inflation Rate

• Market Share

• Gross Income

What is the level of spontaneity or patience you exhibit when making financial decisions called?

• Spending Habits

• Financial Literacy

• Budgeting Skills

• Investment Knowledge

What is a reflexive form of buying without pausing to weigh alternatives, spending then thinking?

• Impulse Spending

• Planned Purchase

• Budgeting

• Delayed Gratification