Economy Quiz Flashcards
Federal Reserve
The central banking system in America.
Discount Rate
The minimum interest rate set by the Federal Reserve for lending to other banks.
Federal Funds Rate
The interest rate that banks charge each other for loans.
Required Reserve Ratio
The fraction of deposits that banks are required to keep in reserve.
Open Market Operations
The buying and selling of government securities in order to alter the supply of money.
Progressive Tax
As income goes up percent tax goes up.
Proportional Tax
As income goes up percent tax stays equal.
Regressive Tax
As income goes up percent tax goes down.
Mandatory Spending
Government must spend this money.
Discretionary Spending
Government has options.
Medicare
Pays for hospital cost 65+
Medicaid
Pays bills for low income families.
Budget Surplus
Spend less than what you take in.
Budget Deficit
Spends more than what you take in.
National Debt
Total amount of money we owe.
