Federal Reserve
What is the main role of the Federal Reserve?
To supply money to the rest of the United States
What is International Trade
The exchange of capital (goods) or services between two countries
What are imports?
The goods, raw materials, and services a country decides to buy from another country.
What is a trade surplus?
A positive trade balance is when the amount of country’s exports is greater than the amount of its imports
What is each bank in the Federal Reserve led by?
Board of Governors
When does International Trade start to expand?
Shortly after World War II
What are exports?
The goods, raw materials, and services that are produced in one country and then sold to another country.
What is protectionism?
when a government tries to restrict the importation of some goods by creating trade policies or trade barriers.
How many regional banks make up the Federal Reserve?
12
Why does International Trade expand?
Tech. Advancements and Trade Agreements
What is a trade deficit?
Where a country is exporting more than it imports
What are at least two trade barriers?
Tariffs/Taxes, Quotas, Subsidizing, Prohibiting Import/Export
How does the Fed make sure our nation’s banking system is sound and safe? (Two Responses)
- Establishes rules and procedures for all banks.
- By performing onsite examinations of banks and measuring their soundness.
What is Globalization?
a process used to describe the growing interdependence or connection of the world’s economies, cultures, and population.
What are the three disadvantages of International Trade?
What is Free Trade?
trade between countries without restrictions or trade barriers.
What is the Money Supply?
The total amount of money that is in circulation in our economy at a given time.
What is an Absolute Advantage?
the ability of a country to produce a good or service at a lower cost than another country.
What is a Comparative Advantage?
when country looks at the opportunity cost to produce an item and chooses to produce those things they can make better than other nations.
What is the WTO?
World Trade Organization