Financial and Economic Terms

Demand

• The total amount of a product available in the market.

• How much of a product or service is desired by buyers.

• The price at which a product is sold.

• The cost of producing a product.

Warranty

• A legal guarantee that a product will work as it is supposed to.

• A type of insurance for products against theft.

• A document that outlines the terms of service for a product.

• A marketing strategy to increase sales.

Intellectual

• Relating to thinking and understanding ideas.

• Pertaining to physical strength and endurance.

• Involving emotional intelligence and empathy.

• Connected to artistic creativity and expression.

Interest

• Payment made for the use of someone else’s money in a loan.

• A fee charged for late payment of a bill.

• A reward for saving money in a bank account.

• The amount of money borrowed from a lender.

Gross Income

• The total amount of money a business or an individual makes

• The total expenses incurred by a business

• The net profit after taxes

• The revenue generated from sales only

Guarantee

• A formal promise or assurance that certain conditions will be fulfilled, especially that a product will be repaired or replaced if not of a specified quality and durability.

• A casual agreement between two parties without any formal documentation.

• A verbal commitment that does not require any written confirmation.

• A suggestion made by a salesperson to encourage a purchase.

Contract

• A written or spoken agreement intended to be enforceable by law.

• A casual conversation between friends.

• A type of legal document that cannot be enforced.

• An informal understanding between two parties.

Supply

• The total amount of money available in the market.

• How much of a product or service the market can offer.

• The demand for a product or service in the market.

• The price at which a product is sold.

Flexible Expenses

• Expenses that remain constant each month

• Expenses that vary from month to month

• Expenses that are always fixed

• Expenses that are only incurred annually

Balanced Budget

• A budget in which expenditures do not exceed revenues

• A budget that allows for unlimited spending

• A budget that only includes fixed costs

• A budget that is always in deficit