1.3 Flashcards
Who makes the decisions in money making?
The Federal Reserve Bank
What is the Federal Reserve Bank?
Privately owned /publically controlled Central Bank of the U.S.
Who prints the money?
The U.S. Treasury
Credit Card
Unsecured; High-Very High Interest
Car Loans
Secured, Medium-High Interest
Home Loans/Mortgage
Secured; Low Interest; Some are guaranteed by the USG
Student Loans
Unsecured; Low Interest; Most are guaranteed by the USG
Business Loans
Can be secured or unsecured; Medium-High Interest; Some are guaranteed by the USG
What is interest?
The price of borrowing money; the price that lenders charge to borrowers for a loan
Who destroys money?
Banks
What are inflows of money?
Receiving money, Earning Money, and Borrowing Money
What are the types of income?
Active Income and Passive Income
What is active income?
Active income is the earning of money from working in exchange for wages, tips, salaries, and profits.
What is Passive income?
Passive income is when you get money from OWNING, aka a return on your own assets.
If you lend money, the return/income is called ________
Interest
