Econ vocab 6

Annual Percentage Rate

• A type of money that is based on a physical commodity, such as gold or silver, which has intrinsic value

• A tax based on the value of owned property, typically levied by local governments.

• The annual rate charged for borrowing or earned through an investment, expressed as a percentage.

• The interest rate at which banks lend reserve balances to other depository institutions overnight, influencing overall economic activity

Automatic Stabilizer

• Economic policies and programs that automatically help stabilize an economy by increasing spending or decreasing taxes during a recession without the need for new legislation

• A tax system where the tax rate decreases as the taxable amount increases, placing a heavier burden on lower-income individuals.

• The buying and selling of government securities by a central bank to control the money supply and interest rates.

• A standard numerical monetary unit of measure that provides a consistent measure of value for goods and services.

Bond

• A U.S. government agency that provides deposit insurance to depositors in U.S. commercial banks and savings institutions, protecting deposits up to a certain limit.

• A debt security issued by a government to support government spending, where the government promises to pay back the face value plus interest at a later date.

• An item that is widely accepted in exchange for goods and services, facilitating trade

• Economic policies and programs that automatically help stabilize an economy by increasing spending or decreasing taxes during a recession without the need for new legislation.

Capital Gains Tax

• A tax on the profit made from the sale of an asset, such as stocks or real estate, that has increased in value.

• Currency that has no intrinsic value but is established as money by government regulation or law.

• The buying and selling of government securities by a central bank to control the money supply and interest rates.

• Money that represents a claim on a commodity and can be exchanged for that commodity.

Commodity Money

• A tax based on the value of owned property, typically levied by local governments.

• The financial situation where the government's revenues exceed its expenditures in a given fiscal year.

• A standard numerical monetary unit of measure that provides a consistent measure of value for goods and services.

• A type of money that is based on a physical commodity, such as gold or silver, which has intrinsic value.

Discretionary Spending

• The interest rate charged by central banks on loans they provide to commercial banks, influencing overall economic activity.

• spending that is required by existing laws, such as Social Security and Medicare.

• Government spending that is not mandated by existing laws and can be adjusted through the budget process.

• The difference between actual output and potential output when the economy is operating below its full employment level, leading to unemployment.

Estate Tax

• A standard numerical monetary unit of measure that provides a consistent measure of value for goods and services.

• Economic policies and programs that automatically help stabilize an economy by increasing spending or decreasing taxes during a recession without the need for new legislation.

• A tax on the transfer of property after someone's death, based on the value of the estate.

• A tax imposed on the sale of goods and services, typically calculated as a percentage of the purchase price.

FDIC (Federal Deposit Insurance Corporation)

• The total amount of money that a country's government has borrowed and not yet repaid

• The buying and selling of government securities by a central bank to control the money supply and interest rates.

• A U.S. government agency that provides deposit insurance to depositors in U.S. commercial banks and savings institutions, protecting deposits up to a certain limit.

• Government spending that is not mandated by existing laws and can be adjusted through the budget process.

Federal Budget Deficit

• The financial situation where the government's expenditures exceed its revenues in a given fiscal year.

• A tax system where the tax rate is fixed, meaning everyone pays the same percentage of their income regardless of how much they earn.

• An asset that maintains its value over time and can be saved and retrieved in the future.

• The buying and selling of government securities by a central bank to control the money supply and interest rates.

Federal Budget Surplus

• A debt security issued by a government to support government spending, where the government promises to pay back the face value plus interest at a later date.

• The difference between actual output and potential output when the economy is operating above its full employment level, leading to inflation.

• A tax system where the tax rate is fixed, meaning everyone pays the same percentage of their income regardless of how much they earn.

• The financial situation where the government's revenues exceed its expenditures in a given fiscal year.