7297062
Description
Flashcards by Dawn S_akura, updated more than 1 year ago
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Created by Dawn S_akura
over 7 years ago
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| Question | Answer |
| Budget Deficit | a situation in which outgoings exceed income |
| Budget Surplus | a sum of money available once all the essential (+mandatory) expenditures in a given period e.g. a month, has been made |
| Cash flow forecast | a plan of expected incomings and outgoings over several time periods ,such as the next three months |
| Consumer Price Index [CPI] | one of the means the government uses to measure inflation. it is calculated by checking the price of a representative sample of goods on a monthly basis -this enables statisticians to measure how much prices are rising or falling |
| Discretionary expenditure | voluntary spending on products and services that people want now, and saving towards items they aspire to buy in the future |
| Dividend | a payment of profits from a company to its shareholders , often at twice-annually intervals, either as cash or (depending on the plan) as further shares or reacquisition of shares |
| Duty | the tax paid on certain items, including fuel, cigarettes and alcohol |
| Essential expenditure | spending on items required to live, e.g. rent or mortgage repayments, food and drink, water supplier, gas and electricity |
| Income | earnings, savings and interest payments received within a certain timeframe |
| Income tax | tax paid on earnings from employment, self-employment and interest on savings |
| Inflation | the rise in prices = the fall in the purchasing power of money |
| Insurance | products that give financial protection against certain events e.g. someone who has travel insurance might be able to claim back the cost of a holiday if they have to cancel through illness. |
| Investments | money paid into financial products; the aim is that the value of the product will grow over time and so the person will eventually receive back more money than they paid in. these are a way of saving over the medium or long term |
| mandatory expenditure | compulsory outings; they do not necessarily apply to everyone but if they do apply, they must be paid. |
| needs | things that people must have to survive, such as food basic clothing, a place to live |
| Office for National Statistics | the independent organisation that provides statistics on many aspects of life in the UK such as employment, health, life expectancy in different areas of the country, housing etc. |
| Pension | an income that people receive after retiring from work. . In the UK these are provided -by the state and can also be provided -from schemes run from the persons former employer -or arrangements that they have made for themselves (private) |
| Premium bond | a lottery bond, issued by NS&I entered into a monthly prize draw with tax-free prizes aka : "premiums". they must be held for a full calendar month after the month in which they were purchased and retail an equal chance of winning until cashed in |
| Real terms | a value adjusted to account for the changes in prices. e.g. although someone may receive a nominal pay increase of 5%, if inflation is 3% then in real terms the pay increase is approximately 5% - 3% =2% |
| Retail Price Index [RPI] | one of the ways the government measure inflation. It is calculated by checking the price of the representative sample of goods on a monthly basis but unlike CPI it takes into account mortgage interest payments and other costs associated with home ownership |
| Self-employment | earning an income by selling your goods or services directly to a consumer, rather than being employed by someone else and being paid a wage or salary |
| Utility | an essential public service such as electricity, gas , water and sewerage |
| Wants | things that people would like to have but can survive without, such as entertainment, fashionable clothes, etc |
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