Personal Finance
Demand
Supply
Monetary Policy
Fiscal Policy
100
All financial decisions and activities of an individual or household, including budgeting, insurance, mortgage planning, savings and retirement planning.
What is Personal Finance?
100
an economic principle that describes a consumer's desire and willingness to pay a price for a specific good or service.
What is Demand?
100
A fundamental economic concept that describes the total amount of a specific good or service that is available to consumers.
What is Supply?
100
The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates.
What is Monetary Policy?
100
Government spending policies that influence macroeconomic conditions. Regulators attempt to improve unemployment rates, control inflation, stabilize business cycles and influence interest rates in an effort to control the economy.
What is Fiscal Policy
200
A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. The term also refers to the borrowing capacity of an individual or company.
What is Credit?
200
the higher the price, the lower the quantity demanded, because consumers’ opportunity cost to acquire that good or service increases, and they must make more trade offs to acquire the more expensive product.
What is the Law of Demand?
200
The supply equals the demand (no excess supply and no shortages) for a given price point; at this point, consumer utility and producer profits are maximized.
What is Market Equilibrium?
200
Open Market Operations, Reserve Requirements, and Interest Rates.
What are the tools of the Federal Reserve?
200
Taxation, government spending, and consumer spending.
What are the tools of Fiscal Policy?
300
an accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in your bank account.
What is Debit?
300
the belief that the main force affecting overall economic activity and causing short-term fluctuations is consumer demand for goods and services.
What is Demand Side Economics, A.K.A Keynesian Economics?
300
The amount of goods or services that are supplied at a given market price. Graphically, the amount of goods or services supplied lies at any point along the supply curve in a price versus quantity plane.
What is Quantity Supplied?
300
Decreases in the discount rate, purchases of government securities and reductions in the reserve ratio.
What are the tools of Expansionary Monetary Policy?
300
Fiscal policy is largely based on the ideas of this British economist who believed governments could change economic performance by adjusting tax rates and government spending.
Who is John Keynes?
400
The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
What are Interest Rates?
400
The demand curve tends to shift to the left
What is the effect of rising prices and higher costs of living on the demand curve?
400
The Supply Curve shifts to the right.
What are the effects of rising prices on the supply curve?
400
Slows the rate of growth in the money supply or outright decreases the money supply in order to control inflation, by slowing economic growth, increasing unemployment and decreasing borrowing and spending by consumers and businesses.
What is Contractionary Monetary Policy?
400
Increased taxes and decreased government spending and borrowing.
What is Contractionary Fiscal Policy?
500
A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate. The account holder may not be able to write checks from the account (without incurring extra fees or expenses) and the account is likely to have a limited number of free transfers/transactions.
What is a savings account?
500
The demand curve shifts to the right.
What is the effect of falling prices and lower costs of living on the demand curve?
500
Suppliers are forced, by the government to provide a good or service for a noncompetitive price, no matter the cost of production.
What are price ceilings and price floors?
500
The central bank of the United States which provides the nation with a safe, flexible and stable monetary and financial system. It is based on a federal system that comprises a central governmental agency (the Board of Governors) in Washington, DC and 12 regional Federal Reserve Banks that are each responsible for a specific geographic area of the U.S.
What is the Federal Reserve?
500
A fiscal policy tool to help stimulate an economy in recession where the government's expenditures exceed its revenues, causing or deepening a deficit. This excess spending needs to be financed through borrowing, likely from foreign governments. The increased government spending can help stimulate the economy as more money flows in, but the jump in borrowing can have an adverse effect by raising interest rates.
What is Deficit Spending?
M
e
n
u