Consumer Economics Glossary

A cash reserve expressly set aside for unplanned expenses or emergencies.

A person who organizes, operates, and assumes the risks of a business or enterprise.

Occurs when the quantity of a good or service provided equals the quantity demanded. Or when all willing buyers are satisfied, and producers do not have any wasted inventory—also referred to as market equilibrium. In a supply and demand graph, it is where the supply and demand curves intersect.

Could be the value of shares, stocks, and shares with no fixed interest or the difference between assets and liabilities. In relation to a mortgage, it is the difference between the home’s value and what you owe.

A federal or, at times, state tax levied on everything you own or have interests, such as property or businesses, at the time of a person’s death.

Comparing the difference in the value of two currencies. If you were traveling to a European country, you would exchange your dollars for euros. The exchange rate would determine how many euros you would get for one dollar. If the euro is valued at a higher rate, you will receive fewer euros than your dollar.