Money
This type of money draws its value from what it is made of or what you can do with it. (2)
What is Commodity Money?
Currency should be limited in supply for this reason. (20)
What is Money can be stored and holds its value?
This is the name of the mostly independent agency that supervises and manages the financial system.This is also the name of the Central Bank of the U.S. (21/22)
What is the Federal Reserve (System)?
This piece of legislation created a central banking system in the United States with the responsibility of managing the money supply. (9)
What is The Federal Reserve Act of _____?
Bonus: What year did this law pass?
This law or amendment gave the U.S. government the authority to collect income taxes. (10)
What is the 16th amendment?
This type of money has value simply because the government says it does. (1)
What is Fiat Money?
Abandoning the gold standard resulted in a decline in the value of the U.S. dollar for this reason. (8)
What is more currency was able to be printed thus reducing its value?
This is what the seven-member board that oversees the Federal Reserve System is called. (27)
What is the Board of Governors?
This is the definition of progressive taxes. (24)
What is A tax that takes a larger share of income as the amount of income grows?
This type of tax is collected by state and local governments but not by the federal government. (Bonus for two types of taxes). (12)
What is property tax?
What is sales tax?
When economists are measuring the money supply, this level would include all physical currency, coins, cash, and the value of checking accounts. (28)
What is M1?
Contractionary government policies address inflation by doing this. (15)
What is decreasing the amount of money in circulation?
The U.S. economy could be adversely (negatively) affected in this way when interest rates are lowered. (11)
What is Prices may inflate?
This program/tax is both a federal revenue source and an expenditure. (13)
What is Social Security?
This is the single largest source of Federal revenue. (25)
What is individual income tax?
Printed on a Federal Reserve note is this statement: “THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE.” That statement reflects this function of money. (17)
What is Medium of Exchange?
When the Federal Reserve buys government securities/bonds on the open market, it has this effect on the nation’s money supply and aggregate demand. (23)
What is Money supply increases and aggregate demand increases?
How does the Federal Reserve raising the reserve requirement affect bank reserves and bank loans? (6)
What is more money is required to be kept in bank reserves, and less money is available to be loaned out to businesses to invest in the economy.
This type of tax impacts people with low incomes more than high incomes. (29)
What is a Regressive tax?
This type of tax is the main source of revenue for local governments. (30)
What is property tax?
This is what it means for money to serve as a store of value. (26)
What is money allows people to save for future consumption?
If the Federal Reserve decreases the discount rate (interest rates), this is how it would affect unemployment and spending. (4)
What is counter unemployment and stimulate spending?
We are most likely in this phase of the business cycle if the Federal Reserve is easing monetary policy making it easier to lend money. (7)
What is recession / contractionary phase?
During an expansionary phase of the business cycle the government could implement a contractionary fiscal policy in order to do this. (14)
What is to address any inflation issues?
The government could use these fiscal policy tools to promote economic growth and address a possible recession. (16)
What is increase government spending and lower taxes?