Unit 2 Flashcards
A policy that combines increased government spending and tax cuts to spur economic growth
Expansionary Fiscal Policy
An institution that safeguards, lends, and exchanges money. This was also destroyed by Andrew Jackson in the United States.
Bank
When a company can offer a product at a lower-cost than other companies due to advantages such as technology and other conditions.
Natural Monolopy
What goes into effect on October 1st, every year?
The Federal Budget
Another name for a new business
Startup
A member-owned financial institution and provides banking services to a particular group.
Credit Union
Is another word for capitalism and is based primarily upon American’s right to own their own businesses.
Free Enterprise System
A new form of money that is growing in popularity is
E-Cash
Was created during the Woodrow Wilson administration
Federal Reserve System
The regulation, or control, of the amount of money in circulation is
Monetary Policy
What includes saving and loan associations and credit unions?
Thrift Institutions
A way of paying off debt
means of payment
Which Amendment is the Takings Clause part of?
Fifth
Who sets policy at the Federal Open Market Committee meetings?
The Fed
What must be sanctioned by the U.S. Department of the Treasury?
Commercial Banks
What would the Fed do if they wanted to encourage growth by risking inflation?
Buy securities in the open market
Which President eliminated any connection between the dollar and gold?
Richard Nixon
Which of these describes the major importance of the Sherman Antitrust Act of 1890?
It was the first move of the government to regulate the economy.
Who was the major obstacle to the spread of banking in Europe during the 1500s?
The Roman Catholic Church
If the Fed wanted to slow down inflation, it would ___.
Sell securities in the open market
In a(n) _____ or free enterprise economy, consumers make the economic decisions.
Market
The National Football League enjoys a ___.
Legal Monopoly
Which event led to a more centralized banking system in the new United States?
The Revolutionary War
The Supreme Court case Kelo v. New London (2005) affirmed the government’s power of _______ domain.
eminent
Within a market economy, _____ ensures that consumers have access to reasonable prices and a variety of choices.
competition