Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
60 Cards in this Set
- Front
- Back
|
goods that when consumed by one individual cannot be consumed by another
|
private goods
|
|
|
goods that can be consumed by one person without preventing consumption by another
|
public goods
|
|
|
the unlimited side effect of that action that affects someone not involved in the action
|
externality
|
|
|
intended to control monopoly power and to preserve and promote competition
|
antitrust laws
|
|
|
a combination of two or more companies to form a single business
|
merger
|
|
|
a market situation in which the costs of production are minimized by having a single firm produce the product
|
natural monopoly
|
|
|
a company pulls the product off the market or agrees to change it to make it safe
|
recall
|
|
|
shows an ecnomy's production after the distortion of a price increases have been removed
|
Real GDP
|
|
|
when the economy goes through alternating periods of growth and decline
|
business ccycle
|
|
|
takes place when GDP goes up
|
expansion
|
|
|
highest point in an expansion
|
peak
|
|
|
takes place when real GDP goes down for 6 straight months
|
recession
|
|
|
includes all civilians 16 years or older who are either working or looking for work
|
civillian labor force
|
|
|
the percentage of people in the civilian labor force who are not working but looking for jobs
|
unemployment rate
|
|
|
to reduce high unemployment, this changes the way it taxes or spends
|
fiscal policy
|
|
|
sustained increase in the general level of prices
|
Inflation
|
|
|
a measure of the price level
|
consumer price index (CPI)
|
|
|
metallic forms of money
|
coins
|
|
|
includes both coins and paper money
|
currency
|
|
|
offer full banking services
|
commercial banks
|
|
|
traditionally loaned money to buy homes
|
Savings and Loan associations
|
|
|
nonprofit organizations sponsored by large businesses, labor unions, or government institutions
|
credit unions
|
|
|
a federal corporation that insured individual accounts in financial institutions
|
Federal Deposit Insurance Corporation
|
|
|
the federal reserve system us the ___ of the US
|
central bank
|
|
|
The Fed's major policy-making group
|
Federal Open Market Committee (FOMC)
|
|
|
involves controlling the supply of money and the cost of borowing money according to the needs of the economy
|
monetary policy
|
|
|
the rate the Fed charges member banks for loans
|
discount rate
|
|
|
Member bounds must keep a certain percentage of heir money in the Federal Reserve Banks as a ___
|
reserve
|
|
|
the purchase or sale of US government bonds and treasury bills
|
Open market operations
|
|
|
allow customers to write checks or use check cards to pay bills or transfer money from one person to another
|
checking accounts
|
|
|
When people have money they can leave untouched for longer periods, they deposit it in a ___.
|
savings account
|
|
|
customers give a certain amount to the bank for a specific period of time
|
certificate of deposit (CD)
|
|
|
Most people have their ___ and ___ in their commercial banks.
|
Chekcing and savings accounts
|
|
|
Today, ___ perform many of the ativities that commercial banks do
|
S&Ls
|
|
|
Only members of the ___ may use the credit union
|
sponsor
|
|
|
If a bank fails, the FDIC will return to depositors the amount of their deposit up to a maximum of ___.
|
$100,000
|
|
|
The FDIC was created after ____
|
stock market crash in 1929
|
|
|
____ helps people feel like they can safely deposit their money in a financial institution
|
INsurance
|
|
|
Congress passed the ____, establishing the FDIC
|
Glass-Steagall Banking act
|
|
|
The ___ permits bank holding companies greater freedom to offer a full range of financial services
|
Gramm-Leach-Bliley Act of 1999
|
|
|
The ___ created a system of dual banking in which banks could have either a state or federal charter
|
The National Banking Act of 1863
|
|
|
Federally chartered private banks issued national currency backed by ___
|
US government bonds
|
|
|
The Panic of 1907 resulted in the ____
|
Federal Reserve Act 1913
|
|
|
In 1914, the Fed began issuing ____, which became the major form of currency in circulation
|
Federal Reserve Notes
|
|
|
During the ____, bankrupt people and businesses could not repay their loans
|
Great Depression of the 1930s
|
|
|
The financial panic of the GD forced thousands of banks to ____.
|
collapse
|
|
|
After the GD, banks could not reopen until
|
it proved it was financially sound
|
|
|
The FOMC's ___ members make decisions that affect the economy as a whole by manipulating the money supply
|
12
|
|
|
The president appoints the 7 members of the ___ and selects one to chair the board for a four-year term
|
Board of Governors
|
|
|
The board of governors is independent of the ___ and ___.
|
President and Congress
|
|
|
The board of governors allow it to make economic decision free from ___.
|
political pressure
|
|
|
Banks make money by ____.
|
INterest
|
|
|
What are the 3 functions of money?
|
It serves as a medium of exchange, a store of value, and a measure of value
|
|
|
Banks are started by ___.
|
Investors
|
|
|
The main activity of a bank is to ___
|
loan money
|
|
|
____ must be members of the fed
|
Federally chartered commercial banks
|
|
|
___ banks may join the fed
|
State Chartered
|
|
|
____ buy stakes in the Fed and earn dividends from it
|
Member banks
|
|
|
Consumption of private goods and services are determined by the ____.
|
Exclusion Principle
|
|
|
Consumption of public goods is determined by the ____.
|
Nonexclusion principle
|
