Taxes & Spending
a tax for which the percentage of income paid in taxes remains the same at all income levels
what is a proportional tax?
This person or group assigns the Federal Reserve Board of Governors
who is the President of the United States?
an institution for receiving, keeping, and lending money
what is a Bank?
name one of the three examples of M1 liquidity
what is a checking account, cash and debit cards
Social Security and Medicare are two examples of this type of spending
What is mandatory spending?
a tax for which the percentage of income paid in taxes increases as income increases
what is a progressive tax?
what is commodity money?
the price paid for the use of borrowed money
what is interest?
name one example of M2 liquidity
What is a savings account?
National Defense and Education are two examples of this type of spending
what is discretionary spending?
a tax for which the percentage of income paid in taxes decreases as income increases
what is a regressive tax?
A system of exchange that is difficult to establish the value of the goods
What is the Barter System?
the seizure of property from borrowers who are unable to repay their loans
a specific type of loan that is used to buy real estate
what is a mortgage?
anything used as money; today we use coins and paper bills as money
what is currency?
Federal taxes applied to gasoline, cigarettes, alcoholic beverages, telephone services, cable television and other items
what is are Excise Taxes?
all the money available in the United States economy
what is the money supply?
This type of interest means savers earn more on their investments
what is compound interest?
a card used to withdraw money from a bank account
what is a Debit Card?
The federal reserve providing money to banks instills ____ in customers
what is confidence in the banking system?
taking tax payments out of an employee’s pay before he or she receives it
what is a withholding?
This type of money has value because the government states that it is an acceptable means to pay debts.
What is fiat money?
a bank that can lend to other banks in times of need
what is the Federal Reserve Bank or a Central Bank?
a card entitling its owner to buy goods and services based on the owner’s promise to pay for those goods and services
what is a Credit Card?
pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets
what is a Mutual Fund?