VIRTUAL SC ECONOMICS CP EXAM
SCRIPT TESTED QUESTIONS VERIFIED
SOLUTIONS
◉ borrower. Answer: Someone who receives something with a promise
to return it or its equivalent
◉ budget. Answer: an estimate of income and expenditure for a set
period of time.
◉ business cycle. Answer: Alternating periods of economic expansion
and economic recession
◉ capitalism. Answer: An economic system based on private property
and free enterprise.
◉ circular flow of finance. Answer: Money flows to workers in the form
of wages, and money flows back to firms in exchange for products.
◉ collateral. Answer: something pledged as security for repayment of a
loan, to be forfeited in the event of a default.
,◉ competition. Answer: the struggle among producers for the dollars of
consumers
◉ consumer. Answer: A person who purchases goods and services for
personal use
◉ Consumer Price Index (CPI). Answer: a measure of the overall cost of
the goods and services bought by a typical consumer
◉ Consumer sovereignty. Answer: the power of consumers to decide
what gets produced
◉ Credit (collateral, creditor, borrower, loan, finance charge, and
interest). Answer: -a contractual agreement in which a borrower receives
something of value now and agrees to repay the lender at some later date
with consideration, generally with interest. Credit also refers to an
accounting entry that either decreases assets or increases liabilities and
equity on the company's balance sheet.
-a person, bank, or other enterprise that has lent money or extended
credit to another party.
-is any fee representing the cost of credit, or the cost of borrowing. It is
interest accrued on, and fees charged for, some forms of credit. It
includes not only interest but other charges as well, such as financial
transaction fees.
, -the charge for the privilege of borrowing money, typically expressed as
annual percentage rate (APR). Interest can also refer to the amount of
ownership a stockholder has in a company, usually expressed as a
percentage.
◉ Credit cards. Answer: means of access to preapproved lines of credit
granted by a bank or finance company
◉ credit score. Answer: A rating used by credit reporting companies to
help lenders decide whether and/or how much credit can be extended to
a borrower.
◉ credit union. Answer: nonprofit service cooperative that accepts
deposits, makes loans, and provides other financial services
◉ currency and coins. Answer: a generally accepted form of money,
including coins and paper notes, which is issued by a government and
circulated within an economy. Used as a medium of exchange for goods
and services, currency is the basis for trade
◉ debit card. Answer: A bank card that automatically deducts the
amount of a purchase from the checking account of the cardholder
◉ Deflation. Answer: a decrease in the general level of prices
SCRIPT TESTED QUESTIONS VERIFIED
SOLUTIONS
◉ borrower. Answer: Someone who receives something with a promise
to return it or its equivalent
◉ budget. Answer: an estimate of income and expenditure for a set
period of time.
◉ business cycle. Answer: Alternating periods of economic expansion
and economic recession
◉ capitalism. Answer: An economic system based on private property
and free enterprise.
◉ circular flow of finance. Answer: Money flows to workers in the form
of wages, and money flows back to firms in exchange for products.
◉ collateral. Answer: something pledged as security for repayment of a
loan, to be forfeited in the event of a default.
,◉ competition. Answer: the struggle among producers for the dollars of
consumers
◉ consumer. Answer: A person who purchases goods and services for
personal use
◉ Consumer Price Index (CPI). Answer: a measure of the overall cost of
the goods and services bought by a typical consumer
◉ Consumer sovereignty. Answer: the power of consumers to decide
what gets produced
◉ Credit (collateral, creditor, borrower, loan, finance charge, and
interest). Answer: -a contractual agreement in which a borrower receives
something of value now and agrees to repay the lender at some later date
with consideration, generally with interest. Credit also refers to an
accounting entry that either decreases assets or increases liabilities and
equity on the company's balance sheet.
-a person, bank, or other enterprise that has lent money or extended
credit to another party.
-is any fee representing the cost of credit, or the cost of borrowing. It is
interest accrued on, and fees charged for, some forms of credit. It
includes not only interest but other charges as well, such as financial
transaction fees.
, -the charge for the privilege of borrowing money, typically expressed as
annual percentage rate (APR). Interest can also refer to the amount of
ownership a stockholder has in a company, usually expressed as a
percentage.
◉ Credit cards. Answer: means of access to preapproved lines of credit
granted by a bank or finance company
◉ credit score. Answer: A rating used by credit reporting companies to
help lenders decide whether and/or how much credit can be extended to
a borrower.
◉ credit union. Answer: nonprofit service cooperative that accepts
deposits, makes loans, and provides other financial services
◉ currency and coins. Answer: a generally accepted form of money,
including coins and paper notes, which is issued by a government and
circulated within an economy. Used as a medium of exchange for goods
and services, currency is the basis for trade
◉ debit card. Answer: A bank card that automatically deducts the
amount of a purchase from the checking account of the cardholder
◉ Deflation. Answer: a decrease in the general level of prices
