Business-Related Terminology

Exercise 4-16 Business-Related Terminology

Directions: I. Match the business-related term learned in Exercise 58 with the definitions at the right. On the blank line preceding each line, use the Insert key to key in the letter of the definition from the second column.

Better Business Bureau (BBB) a. statement showing borrowers cash price, down payment, and other charges

commodities b. maximum amount a person can borrow without completing a new credit application

compensation c. a nonprofit agency set up by local business firms to improve business practices and pro- tect customers

consumer price index d. the use of computers and electronic means to transfer money from one acco- unt to another or from one party to another, such as from an employer directly to a bank

couponing e. a law requiring creditors to state the monthly and annual percentage rates used in computing finance charges disclosure statement f. items and services that are bought and sold electronic funds transfer (EFT) g. an index showing the cost of living based on average prices paid for selected goods and services as published monthly by the U.S. Bureau of Labor Statistics

Food and Drug Administration (FDA) h. a document obtained by a charge that will cover all costs of maintenance and repair of the product during the contract's lifetime line of credit i. offering a reduction in price through a coupon to persuade consumers to try a product service contract j. payment for services or something given to make up a loss truth in lending k. A federal agency that inspects and approves food that crosses state boundaries as well as oversees the control and permits the release of prescription drugs warranty l. A promise by the manufacturer to repair a malfunc- tioning product, without charge, within a stated period of time

II. Opposite each word, write a sentence using this word in a consumer setting.

1. Better Business Bureau (BBB)

2. commodities

3. compensation

4. consumer price index

5. couponing

6. disclosure statement

7. electronic funds transfer (EFT)

8. Food and Drug Administration (FDA)

9. line of credit 10. service contract

11. truth in lending

12. warranty