Economics - Unit 5 Part 2 Vocabulary Quiz

The monetary policymaking body of the Federal Reserve System

• Federal Reserve Act of 1913
• Interest on Required and Excess Reserves
• Federal Reserve System
• Federal Open Market Committee (FOMC)

Used during a time of increasing price level to curb inflation by lowering government spending or increasing taxes

• fiscal policy
• contractionary fiscal policy
• Federal Reserve System
• Federal Reserve Act of 1913

The central bank of the United States - created to provide stability for the U.S. financial system after the country experienced a series of severe financial crises

• contractionary fiscal policy
• Federal Reserve System
• Federal Reserve Act of 1913
• monetary policy

Created in 2008 by Congress to begin paying interest on reserves of financial institutions - changing the interest rate can increase or decrease the money supply

• Interest on Required and Excess Reserves
• Federal Reserve Act of 1913
• contractionary fiscal policy
• Federal Open Market Committee (FOMC)

When the amount of income received exceeds the amount of expenses paid

• store of value
• deficit
• surplus
• national debt

Total amount of outstanding debt for the federal government

• income (government)
• national debt
• fiat money
• deficit

When the amount of income received falls short of the amount of expenses paid

• deficit
• store of value
• surplus
• national debt

Changing levels of taxation and/or government spending at the federal level to stabilize the economy

• fiscal policy
• Federal Reserve Act of 1913
• Federal Reserve System
• monetary policy

Created a decentralized structure with a maximum of 12 district banks located throughout the country - private part are district banks - public part is the Board of Governors

• contractionary fiscal policy
• Board of Governors
• Federal Reserve Act of 1913
• Federal Reserve System

Official money used by the government of a country

• fiat money
• income (government)
• surplus
• store of value