Money

Question 1

Fiscal Policy

Answer 1

Government gets involved; Changes in government spending and taxation. It can affect the total amount of output produced GDP

Question 2

Monetary Policy

Answer 2

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

Question 3

Federal Deposit Insurance Corporation (FDIC)

Answer 3

Independent Agency that keeps back up money in the banking system so if their ever was another depression, money would be insured

Question 4

Federal Reserve

Answer 4

Central Bank of the U.S. Maintains a safe, flexible and stable monetary and financial system

Question 5

Circular Flow

Answer 5

Economic Model that shows how the money flows through the economy

Question 6

Revenue

Answer 6

The income that the government or a business collects/Money Coming In

Question 7

Excise Tax

Answer 7

An indirect Tax/ A tax on a sale that is already built in the cost

Question 8

Tariff

Answer 8

A Tax on an imported good

Question 9

Inflation

Answer 9

An increase in prices and the value of money decreasing

Question 10

CPI

Answer 10

A measure of changes in the purchasing power of a currency and rate of inflation

Question 11

Stocks

Answer 11

Ownership shares of a corporation; More risky

Question 12

Bonds

Answer 12

A contract to repay the borrowed money with interest at a specific time in the future; less risky

Question 13

Depression

Answer 13

Sustained long term downturn in economic activities; Extreme recession

Question 14

Certificate of Deposit

Answer 14

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.

Question 15

M1

Answer 15

Has liquidity so its actual cash; Currency, Checking accounts. and travelers checks

Question 16

M2

Answer 16

Near Money or indirect money; its not directly cash but can easily be converted; Savings accounts, Market funds.

Question 17

Money Market

Answer 17

A type of savings that allows the loaner or customer to have limited check writing ability.

Question 18

Mutual Fund

Answer 18

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

Question 19

Life Insurance

Answer 19

Insurance that pays money collected either because of the death of the insured person or after a certain period of time

Question 20

Pension

Answer 20

a payment given to a person when they retire as a thank you for the work they’ve done.

Question 21

401K

Answer 21

an insurance plan where the money from the person’s pay check can be taken out and saved before taxes are taken out

Question 22

GDP

Answer 22

The total dollar value of all final goods and services produced in a country during a single year

Question 23

GNP

Answer 23

GDP plus income from foreign sources

Question 24

Union

Answer 24

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

Question 25

Right to Work

Answer 25

promoting a workers right not to be required to join a labor union

Question 26

Deficit

Answer 26

an excess of spending expenditure, liabilities or assets in a given period