Banking
As the close of business at 5 p.m. on Tuesday, The High Street Savings and Loan Bank has taken in $10,000 in new deposits, issued $5,000 in withdrawals from its ATM and received $8,000 in loan payments. The bank has $13,000 more in its vault than it had when opened Tuesday Morning. In this scenario, which statement describes what will happen to the excess money the bank has taking in on Tuesday?
Is it
A. Most of it will be given out as profit to the bank's share holds.
B. Some of it will be returned to people who made loan payments.
C. Most of it will be invested in the Stock Market in New York.
D. Some of it will be transferred to the Federal Reserve.
D. Some of it will be transferred to the Federal Reserve.
Margaret keeps the money she earns from her newspaper route in a box under her bed. When she has $100 saved in the box, she opens a savings account. What happens to Margaret's deposit after she opens her account?
A. It is loaned out by Margaret's bank.
B. It is transferred to the Federal Reserve.
C. It is used to pay Margaret's income taxes.
D. It is converted into gold from the U.S. government reserves.
A. It is loaned out by Margaret's bank.
Why is the GDP an important economic indicator?
A. It measures a country's economic growth.
B. It measures a country's successful business.
C. It measures the impact of inflation on a country's consumers.
D. It measures the level of joblessness among a country's workers.
A. It measures a country's economic growth.
What did the Fed do in 2008 to fix the economy?
What is Lower interest rates
True or False: Lower interest rates encourage people to save more.
False
Who controls monetary policy in the U.S.?
What is The Federal Reserve.
What is missing
Livestock
Metal coins
paper money
?
Fiat Currency
What is Gold Standard
The government of Country W raises its tariff rates to protect domestic industries and workers. The government of Country X retaliates by raising its tariff rates. This cutes teh amount of Country W's exports to Country X in half. What is teh direct effect of this scenario if all other economic factors remain constant?
A. Inflation occurs in both countries
B. Tax revenues increase for both governments.
C. The unemployment rate declines in Country X.
D. Gross domestic product (GDP) decreases in Country W.
D. Gross domestic product (GDP) decreases in Country W.
The United States loses 2 million jobs over a a two-uear period. The federal government's income tax revenues decline as a result, and the economy begins to go into a downturn. Which action describes a Keynesian response to this scenario?
A. Sell a large amount of bonds to increase government spending.
B. Raise taxes on corporate profits, and cut social welfare spending.
C. Reduce interest rates on government loans to stimulate borrowng.
D. Lower taxes on the middle class and expand government transportation projects.
D. Lower taxes on the middle class and expand government transportation projects.
What’s the current unemployment rate in Arkansas?
A. 3.3%
B. 4.5%
C. 12%
D. 5%
A. 3.3%
What roles do banks have in circular flow?
A. They protect U.S. consumers and businesses from inflation.
B. They use money from the Federal Reserve Bank when necessary.
C. They help foreign businesspeople understand different economies.
D. They provide loans to consumers, businesses, and foreign companies.
D. They provide loans to consumers, businesses, and foreign companies.
Name a time when the government used expansionary fiscal policy.
COVID relief, Great Depression,
What is the goal of contractionary monetary policy?
What is reduce inflation
What kind of policy were the COVID-19 stimulus checks?
What is Fiscal policy.
True or False: Inflation means prices go down.
What is False
What happens to interest rates when the Fed wants to slow inflation?
They go up
How does lowering interest rates affect consumer spending?
What is increases it.
What’s a government deficit?
What is Spending more than they collect in taxes
What was the main goal of the New Deal programs?
What is Create jobs, recover economy
What’s stagflation?
What is High inflation + high unemployment
What does the Federal Reserve do to fight a recession?
What is Lower rates / increase money supply
What is the goal of contractionary monetary policy?
What is reduce inflation.
What’s one downside of expansionary fiscal policy?
What is Can increase government debt
What policy did the Fed use to fight inflation in 2022?
What is Raised interest rates repeatedly
What’s GDP and CPI stand for?
GDP= Gross Domestic Product
CPI= Consumer Price Index