Fiscal Policy
Who is responsible for creating fiscal policy?
Money you put into a savings account earns what?
Interest
The giant shipping and logistics business located and founded in Memphis, TN.
What is FedEx
What does inflation mean?
General rise in prices
Who is in charge of U.S. monetary policy?
The Federal Reserve
Fiscal policy involves changes in government spending and what else?
Taxes
Buying a share, or partial ownership in a company?
What is a stock
This Memphis-based hospital is world-famous for its research and treatment of childhood illnesses.
St. Jude
What does “unemployment rate” measure?
The percentage of people without jobs who are looking for work.
What is the main tool the Fed uses to control the money supply?
Interest Rates
Cutting taxes is an example of what type of fiscal policy?
Expansionary fiscal policy
What has the least amount of risk stocks or bonds?
Bonds
This Memphis company is a major player in the paper and packaging industry.
International Paper
What does GDP stand for?
What is Gross Domestic Product
Lowering interest rates makes borrowing money easier or harder?
Easier
Main goal of fiscal policy?
To influence the economy (growth, inflation, unemployment).
What does diversifying your portfolio mean?
Spreading investments across different assets.
Memphis International Airport is known as the busiest in the world for this type of cargo.
Air Freight
What does “liquidity” mean in finance?
How easily an asset can be converted into cash.
What is the Fed’s target inflation rate (approx.)?
2%
A government budget deficit happens when spending is greater than what?
Tax revenue
What is a company’s first sale of stock to the public called?
Initial Public Offering (IPO).
Memphis is a top U.S. hub for this kind of industry: storing, packaging, and moving goods.
Logistics
What is the difference between a bull market and a bear market?
Bull = rising prices; Bear = falling prices.
Buying and selling government securities is called what?
Open market operations.