Money and Banking
Banks create money through a process called?
When goods and services are moved across a nation’s border into another nation
Globalization
Development of skills or knowledge in one aspect of a job or field
Specialization
A good that can take the place of another good
Substitute good
Paid directly by a person or organization to the government body that imposed the taxes.
direct taxes
Name one of the three uses of money.
Medium of Exchange, Unit of Account, Store of Value
Primarily designed to assist developing nations in growing economically through aid, financing, research, and guidance
The World Bank
True/False: Offshoring is NOT a result of greater trade in the 20th and 21st centuries
False
People that buy goods and services
Consumer
Taxes that hit lower income individuals
harder.
regressive taxes
Money that can be consumed and/or used to buy and sell things
Commodity money
Maintains facilities and conducts business in a minimum of one country abroad
Multinational Corporation (MNC)
Why do people trade?
To get things they do not have.
To make money.
What determines the price of a good or service?
Supply and Demand
A flat tax is an example of what?
Proportional tax
Insures accounts up to $250,000 in case of bank closure.
FDIC
Regulates the international rules of trade with the goal of promoting free trade and benefitting all member nations
The World Trade Organization
The condition in which some person or country can produce something with a lower opportunity cost than some other person or country
Comparative Advantage
The amount of a good or service that consumers are willing to buy.
Demand
Taxes that require the same percentage of income for all taxpayers
proportional taxes
Name three of 6 tests that countries do in selecting currency is?
Durable, Portable, Divisible, Uniform, Limited Supply, Acceptable
Promotes economic stability and helps or lends to countries in need
International Monetary Fund
The condition in which some person or country can produce more of something with the same inputs or resources.
Absolute Advantage
If a good becomes popular or fashionable, what will happen with the demand for the good.
Increase
At the most basic level, taxes raise money for...?
government services