Stock Market
page 286
How many types of stock are there?
4
page 261
What are credit cards?
cards entitling their holders to buy goods and services based on the cardholders promise to pay for these goods and services
page 359
Who pays taxes?
What are taxes used for?
Everyone, citizens of the USA
the government to operate
page 365 looking at Figure 14.4 Federal Revenue, 2004
Which group of taxpayers pays the most to help federal revenue?
individual income taxes
page 371
What is the difference between mandatory and discretionary spending?
money lawmakers are required by law to spend on certain programs or to use on interest payments on the national debt
government planners can make choices where to spend the money
page 286-287
How does a person go about buying stock?
contact a stockbroker because they link buyers with sellers of a stock
page 261
What happens if you don't pay your credit card in full each month?
You accrue interest, which makes the good or service cost more over time.
page 359 Be sure to answer both parts of the question.
What document gives who the power to tax?
Constitution
Congress
page 366
What is the difference between Personal exemptions and deductions?
Personal exemptions are set amounts taken from your gross income for yourself, your spouse, and any dependents
deductions are variable amounts taken from your gross income
page 374
How much federal tax dollars find their way to state and local governments?
This is an average of about how much per person?
$406 billion
$1,400 per person
page 289
What is daytrading?
predicting minute-by-minute price changes based on computer programs that tell the trader when to buy and sell
page 259
What are the 4 most common ways of saving money?
savings accounts
checking accounts
money market accounts
certificates of deposit (CDs)
page 361
What is a progressive tax?
percentage of income paid in taxes increases as income increases
page 367
FICA taxes your pay that goes to the Social Security Administration to fund what 3 groups?
Old-Age
Survivors
Disability
page 376
What is a balanced budget?
budget in which revenues are equal to spending
page 287
What does NYSE stand for?
What is it?
New York Stock Exchange
financial market where stocks are bought and sold
According to Figure 10.6 on page 260
Looking at "BANK 1" in purple
Why does the bank Retain $2,000?
to cover demand for withdrawals
page 361-362
What are the 4 characteristics of a Good Tax?
simplicity
efficiency
certainty
equity
page 368-369
What are the names of the 4 other types of taxes?
Excise
Estate
Gift
Import
page 377
What does tax exempt mean?
not subject to taxes
page 290
What 4 things caused "The Great Crash of 1929"?
The nation's wealth was held by few people and companies
Farmers and workers were suffering financially
Ordinary people went into debt buying consumer goods
debt of investors was pilling up by playing the stock market
pages 262-263
Name the 4 types of financial institutions?
commercial banks
savings and loan associations
savings banks
credit unions
page 362-363
Who bears the tax burden?
producers and consumers
page 369
What are tax incentives?
Why are they important?
Give an example of a tax incentive (not the one in the book)
taxation used to encourage or discourage behavior
they are important because if people consider the cost of their habits on others they might reconsider purchasing those items
buying solar panels, buying an electric or hybrid vehicle
page 376-377
Where are state taxes spent (name all 6)?
education, public safety, highways and transportation, public welfare, arts and recreation, and administration