Money
Describes money that is interchangeable with other many of the same form.
fungible
The group of seven that oversees the Federal Reserve System.
Board of Governors
Economic Indicators measure _____________.
the health of the economy.
An obligation to pay the government a given portion of your earnings.
Income tax
Name at least three consumer rights.
Right to Safety
Right to be Informed
Right to Choose Carefully
Right to be Heard
Right to Redress
Anything that is generally accepted as payment for goods and services and the repayment of debts.
money
Twelve regional banks act as _________ for local banks.
banks
The rise in the average prices of goods and services as the value of the dollar decreases.
inflation
Many states increase revenue by requiring a percentage of payment on purchases of goods and services in the form of ___________.
sales tax
What does the Consumer Product Safety Commission do?
Protects the public against unreasonable risk from consumer products.
A form of money that has intrinsic value (ex. gold, silver, oil, etc.)
commodity
When and why was the Federal Reserve System created?
1913, because of lack of stability throughout previous decades, especially following major bank collapses or panics in 1873, 1893, and 1907
Measurement of the numbers of individuals seeking work.
unemployment rate
Money paid to the government for land owned and used by an individual, company, or organization.
property tax
What does the Food and Drug Administration do?
Enforces laws and regulations on the purity, quality, and labeling of food, drugs, and cosmetics.
Government-issued coins and bills that cannot be refused as payment.
legal tender
Name at least three roles of the Fed.
~ Sets monetary policy for the benefit of the nation
~ Promotes stability in financial institutions and the economy
~ Promotes consumer protections
~ Sets interest rates
~ Provides payment services for banks and the US Government
A prolonged slowing of the economy.
recession
Name and define at least three types of taxes.
Sales tax - consistent percentage paid on purchases
Income tax - percentage of income paid
Excise tax - charged for the purchase of specific items
Property tax - paid on land/buildings owned
Payroll tax - specific payments to Social Security, Medicare, etc.
What does the US Department of Agriculture (USDA)?
Sets standards for, inspects, and grades meats, poultry, and fruits/vegetables.
Value based on a mutual agreement of value.
fiat money
Explain the role of the President and Congress in the Federal Reserve System.
Why is the Fed an independent agency?
The President appoints governors to the Board of Governors; the Senate confirms.
To avoid political influence in monetary policy in order to provide stability.
The _________ indicates the dollar value of all final goods and services within a country's borders in a given year.
Gross Domestic Product (GDP)
Why does the government use "sin taxes?"
To encourage people to avoid using products that are harmful to health or the environment, thus saving other taxpayers in the long run.
What does the Consumer Credit Protection Act do?
Requires truth in lending. Consumers must be told exactly what the credit charge is on a purchase or loan.