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19 Cards in this Set
- Front
- Back
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3 methods that the Federal Reserve uses to control the money supply |
discount rates, open market operations, and reserve ratios |
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3 stages of inflation |
People spend, people save, hyperinflation |
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Example of supply and demand |
gasoline and food |
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Four types of retirement accounts |
IRA, Roth IRA, 401K, and KEOUGH plan |
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How does the government get its money |
taxes |
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Reason for inflating in a democracy: |
to get elected |
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Reason for inflating in a dictatorship: |
to prevent a revolution |
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Why are coins today not really "coins?" |
they contain no precious metals |
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What is fractional reserve banking? |
the banks are only required to keep a percentage of the money in the bank, the rest they invest |
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How many banks are in the Federal Reserve System? |
12 |
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When did gold stop circulating in the U.S. ? |
1930s |
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When did silver stop circulating in the U.S.? |
1960s |
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What is the FDIC? |
An insurance company that protects people's money |
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What does FDIC stand for? |
Federal Deposit Insurance Corportation
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What does the FDIC do? |
An insurance company that protects people's money that is in checking acct, savings, money markets, and certificates of deposit
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What Cabinet department is most involved with Federal economic policy? |
Treasury dept. |
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Historic event that ended the Great Depression: |
World War 2 |
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What ends runaway inflation? |
When currency is rejected by the people |
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What keeps velocity under control? |
people and their choices |
