Money Flashcards
Fiscal Policy
Government gets involved; Changes in government spending and taxation. It can affect the total amount of output produced GDP
Monetary Policy
The controlling of the supply of money and the cost of borrowing the money (credit) according to the needs of the economy. Economic growth slowing/Inflation
Federal Deposit Insurance Corporation (FDIC)
Independent Agency that keeps back up money in the banking system so if their ever was another depression, money would be insured
Federal Reserve
Central Bank of the U.S. Maintains a safe, flexible and stable monetary and financial system
Circular Flow
Economic Model that shows how the money flows through the economy
Revenue
The income that the government or a business collects/Money Coming In
Excise Tax
An indirect Tax/ A tax on a sale that is already built in the cost
Tariff
A Tax on an imported good
Inflation
An increase in prices and the value of money decreasing
CPI
A measure of changes in the purchasing power of a currency and rate of inflation
Stocks
Ownership shares of a corporation; More risky
Bonds
A contract to repay the borrowed money with interest at a specific time in the future; less risky
Depression
Sustained long term downturn in economic activities; Extreme recession
Certificate of Deposit
Type of Savings; You loan your money to the bank for a specific period of time and the bank pays you interest which is higher than interest of checking account.
M1
Has liquidity so its actual cash; Currency, Checking accounts. and travelers checks
M2
Near Money or indirect money; its not directly cash but can easily be converted; Savings accounts, Market funds.
Money Market
A type of savings that allows the loaner or customer to have limited check writing ability.
Mutual Fund
A collection of stocks maintained by a fund manager; you buy into the stocks but you don’t have to have the knowledge about it
Life Insurance
Insurance that pays money collected either because of the death of the insured person or after a certain period of time
Pension
a payment given to a person when they retire as a thank you for the work they’ve done.
401K
an insurance plan where the money from the person’s pay check can be taken out and saved before taxes are taken out
GDP
The total dollar value of all final goods and services produced in a country during a single year
GNP
GDP plus income from foreign sources
Union
A group of workers joined together in a specific type of organization for the purpose of improving their working conditions and promoting the common interests of the group
Right to Work
promoting a workers right not to be required to join a labor union
Deficit
an excess of spending expenditure, liabilities or assets in a given period
