wow 5. checking account: a banking service wherein money is deposited into an account and checks...
TRANSCRIPT
Introduction to Marketing
WOW 5
Checking account: A banking service wherein money is
deposited into an account and checks are written to withdraw
money as needed
Example: Used by your parents, business owner, or you to keep
track of money.
Credit: The privilege of borrowing something now, with the agreement to pay
for it later
Example: A Macy’s, VISA, Mastercard, American Express cards.
Creditworthiness: Past and future ability to repay debts
Example: If you want to buy a car you have to have a history of being
able to repay the debt.
Creditor: Any person to whom one owes money or
goods
Example: Person who has a loan for a car. (Or other item)
Debit card: A plastic card that consumers may use to make
purchases, withdrawals, or other types of electronic fund transfers. Use of a debit card results in an
immediate transfer of funds
Example: VISA or Mastercard that is attached to your bank account.
Debt: Money owed
Example: If you have an agreement to repay; loan.
Disposable income: The money you have to spend or save as you
wish after taxes, social security, and other required and optional
deductions have been withheld from your gross pay
Example: Used to pay bills; house payment, car payment, etc.
Discretionary income: Money that is left over when
the bills have been paid
Example: Money ear tagged to do things you may want;
vacation, coffee, new phone, etc.
Income: Money that comes in from property, business or
work
Investment: Outlay of money in the hope of
realizing a profit
Example: buying a house
Saving: Setting aside income or money for future
spending
Example: bank savings account
Stock: Ownership in a corporation; stock can be
common or preferred
Example: Apple Corporation