Fed
How many Federal Reserve banks exist?
12
What is fiscal policy?
What is deficit?
A deficit occurs when the spending exceeds the income
What is the role of money?
Money is a medium that allows for the easy exchanging of goods
What prompted the creation of the federal reserve?
The great depression
What are the 2 goals of the Federal Reserve?
Promote economic growth, and stop inflation.
How does fiscal policy impact spending?
Stimulating taxes and stimulating spending.
What is national debt?
Amount of money the federal government owes
What is the belief that money holds value?
Store of value
How much debt does the US have?
22 trillion currently
What exactly does the federal reserve control?
Money supply.
How does the federal gov control the economy?
Fiscal policies
What is a surplus?
An excess in income, producing unused funds.
What is the unit of account?
It allows people to compare goods, by using a standard, the dollar
What is the main method the federal gov uses for income?
Taxes
What is a reserve requirement?
The minimum amount of money the fed requires a bank hold.
Which Branch of the gov enacts these fiscal changes?
Legislative, specifically congress.
The plan the gov uses to spend it’s money
What is a market contraction called?p
A recession
What is GDP?
Sum of consumer spending
What is an interest on a reserve?
Interest paid to commercial banks on deposits.
Who signs these fiscal proposals into law?
The president
What portion of our debt to we pay the most on?
The interest on our loans
What is an open market operation?
The federal reserve’s use of buying treasury securities.
Where is the board of governors located?
Washington D.C.