Because of quick communications, borrowing, loaning, importing and exporting, we now live in this
What is a Global Economy
100
Government construction projects like roads, dams, or bridges
What are Public Works
100
Made up of mostly currency and coin, most of this is on deposit in the Federal Reserve Bank.
What is Monetary Base (MB) or M1
100
Buy these if you want a piece of the business action
What are Stocks
100
Prices aren't rising as fast as money supply is increasing, but people hold money in hopes prices will drop back to a previous level.
What is First Stage Inflation
200
Economists try to measure this total as well as by individual countries
What is World Money Supply
200
The Central Bank of the US that controls the supply of money and attempts to control interest rates.
What is the Federal Reserve Bank
200
The amount of money in a country or economy.
What is Money Supply
200
An I.O.U, usually long-term. People pay you to borrow your money, and it's a safe investment. You get paid first out of profits.
What is a Bond
200
Prices rise faster than money supply is increasing, but people catch on and spend their money before it does down further in value. Money changes hands quickly, people don't want to hold on to it!
What is Second Stage Inflation
300
A tool in political affairs, this action forbids selling products to certain buyers, usually as leverage for something else. In 1979, it was all about grain.
What is an Embargo
300
The US Government's estimate of the overall price level of goods purchased by citizens
What is Consumer Price Index (CPI)
300
Currency, checking accounts, savings accounts, travelers checks, money market mutual funds and certain transactions between banks accounts for this.
What is M2
300
Easily sold or traded, this term describes bank deposits and stocks.
What is Liquid
300
Prices rise between 1- and 99% in one year due to inflation of the money supply.
What is Double-Digit Inflation
400
When holders of a currency panic to trade it away for something they value or trust, usually gold.
What is a Run on the dollar
400
If you loan your money to the government, they give you one of these. It's not like overpaying your taxes, because they don't pay you interest on your refund
What is a Treasury Bond
400
The desire to hold money rather than trade it away. High means to hold it, low means to spend it!
What is Demand for Money
400
The price of renting money. When the supply of money is less than the demand, rates rise.
What is Interest
400
The whole population is in a panic to get rid of paper money as soon as they get their hands on it. Money value declines to that of it's real value...scrap paper.
What is Third Stage Inflation
500
Another government tool, this forbids traders to change prices or to sell or transport goods. Using it in 1979 nearly caused a global financial catastrophe.
What is a Freeze
500
The government's estimate of our total production of finished goods and services
What is Gross National Product (GNP) or Gross Domestic Product (GDP)
500
The shortfall between the income and spending, this counts all of Congress' together.
What is The National Debt or Federal Deficit
500
Real estate and big-ticket goods are considered hard to trade and therefore this
What is Illiquid
500
Inflation in which prices are rising at a triple-digit (or more) rate per year.