Econ Recap

Fee charged to borrow money

• Inflation
• Interest
• Discount rate
• Reserve requirement

If the United States is experiencing inflation, the Fed will likely

• Increase the supply of money in the economy
• Decrease the supply of money in the economy

The FED increases/decreases the nation’s money supply (through the changing in interest rates) in order to meet the 2 main government economic goals. These goals are...

• decrease in prices & full employment

• stable prices (limit inflation) & full employment,

• consistent prices & regulation of the stock market

• increase in prices & full unemployment

What is the Federal Reserve System?

• the central banking system of the United States.

• a government office for regulating the budget of the United States of America.

• the banking system of the southeast

• the office that controls tax rates and government spending

________ _________ is when you earn interest on both the money you've saved and the interest you earn.

• overdraft fee

• simple interest

• compound interest

• annual percentage rate

_____ ____ savings will typically be spent within 5 years for things such as emergencies, weddings, rent payment, etc.

• stocks

• short term

• long tern

• bonds

What is a company that brings together money from many people and invests it in stocks, bonds or other assets called?

• mutual funds

• payday lenders

• credit union

• simple interest

An account set up at a financial institution that allows an individual to save for retirement with tax-free growth is a __________ ________?

• credit union

• mutual fund

• retirement account

• stocks

A _____ is an investment that represents a share, or partial ownership, of a company.

• bond

• stock

• mutual fund

• retirement account

Economics can be described as the study of

• Money

• Choices

• graphing

• price ceilings and price floors