Vocab about money

2. CREDIT
• THE ABILITY OF A CUSTOMER TO OBTAIN GOODS OR SERVICES BEFORE PAYMENT, BASED ON THE TRUST
THAT PAYMENT WILL BE MADE IN THE FUTURE.

3. DEBIT
• AN ENTRY RECORDING AN AMOUNT OWED, LISTED ON THE LEFT-HAND SIDE OR COLUMN OF AN ACCOUNT.

4. INTEREST
• MONEY PAID REGULARLY AT A PARTICULAR RATE FOR THE USE OF MONEY LENT, OR FOR DELAYING THE
REPAYMENT OF A DEBT.

5. GROSS PAY
• GROSS SALARY IS THE TERM USED TO DESCRIBE ALL OF THE MONEY YOU'VE MADE WHILE WORKING AT
YOUR JOB, FIGURED BEFORE ANY DEDUCTIONS ARE TAKEN FOR STATE ANDFEDERAL TAXES, SOCIAL
SECURITY AND HEALTH INSURANCE.

6. NET PAY
• NET PAY IS THE AMOUNT OF WAGES THAT EMPLOYEES ACTUALLY TAKE HOME.

7. FIXED EXPENSES
• FIXED EXPENSES OR COSTS ARE THOSE THAT DO NOT FLUCTUATE WITH CHANGES IN PRODUCTION LEVEL
OR SALES VOLUME.

8. VARIABLE EXPENSES
• VARIABLE COSTS ARE THOSE COSTS THAT VARY DEPENDING ON A COMPANY'S PRODUCTION VOLUME;
THEY RISE AS PRODUCTION INCREASES AND FALL AS PRODUCTION DECREASES.

9. CONSUMABLE GOODS
• CONSUMABLES ARE GOODS THAT, ACCORDING TO THE 1913 EDITION OF WEBSTER'S DICTIONARY, ARE
CAPABLE OF BEING CONSUMED; THAT MAY BE DESTROYED, DISSIPATED, WASTED, OR SPENT.

10. FICA
• TAX IMPOSED ON BOTH EMPLOYEES AND EMPLOYERS TO FUND SOCIAL SECURITY AND MEDICARE—
FEDERAL PROGRAMS THAT PROVIDE BENEFITS FOR RETIREES, THE DISABLED, AND CHILDREN OF
DECEASED WORKERS.

11. SALARY
• A FIXED REGULAR PAYMENT, TYPICALLY PAID ON A MONTHLY OR BIWEEKLYBASIS BUT OFTEN EXPRESSED
AS AN ANNUAL SUM, MADE BY AN EMPLOYER TO AN EMPLOYEE, ESPECIALLYA PROFESSIONAL OR WHITE-
COLLAR WORKER.

12. DISCRETIONARY EXPENSES
• A COST WHICH IS NOT ESSENTIAL FOR THE OPERATION OF A HOME OR A BUSINESS. FOR EXAMPLE, A
BUSINESS MAY ALLOW EMPLOYEES TO CHARGE CERTAIN MEAL AND ENTERTAINMENT COSTS TO THE
COMPANY IN ORDER TO PROMOTE GOODWILL WITH EMPLOYEES.

13. BUDGET
• AN ESTIMATE OF INCOME AND EXPENDITURE FOR A SET PERIOD OF TIME.

14. CREDIT SCORE
• A NUMBER ASSIGNED TO A PERSON THAT INDICATES TO LENDERS THEIR CAPACITY TO REPAY A LOAN.

15. FINANCIAL INSTITUTIONS
• AN ESTABLISHMENT THAT FOCUSES ON DEALINGWITH FINANCIAL TRANSACTIONS, SUCH AS
INVESTMENTS, LOANS AND DEPOSITS.

16. MORTGAGE
• THE CHARGING OF REAL (OR PERSONAL) PROPERTY BY A DEBTOR TO A CREDITOR AS SECURITY FOR A
DEBT ON THE CONDITION THAT IT SHALL BE RETURNED ON PAYMENT OF THE DEBT WITHIN A CERTAIN
PERIOD.