One of the many reasons that people save is to send their children to college. Another is to make a down payment on a home. Yet another is for those years after people stop working. There are different methods of saving for retirement, each having different risks. As you read this section, you’ll learn about special savings plans and the amount of risk involved in these investments.
To protect consumers, the federal and state governments regulate the credit industry. Some states have set a maximum on the interest rates charged for certain types of credit. The federal government has also passed laws designed to increase the flow of credit information to consumers.
In this section, you’ll learn about these laws and how they protect consumers from unfair credit practices.
The Many Uses of Economic Tools
Economics was first developed to study the production and distribution of goods and services. he boundaries of the field are much broader now. For example, economists have expanded their sights from the wealth of nations to the health of nations, with goals to get more out of our limited health care resources.
Some government intervention occurs in the American economy, but generally the marketplace answers the three basic economic questions of what, how, and for whom goods and services should be produced. In command (controlled) economies, however, the government (and not the market) answers these three basic questions. Read on to learn about the major alternative to market capitalism
How do you apply for credit? What factors determine whether or not you will be approved for credit? Perhaps more importantly, how can you dig yourself out of debt if your payments are more than you can handle? In this section, you’ll learn what makes a person eligible for credit. You’ll also learn ways to handle your debts before they get out of control.