Money Standard
A single commonly used good becomes the economy's medium of exchange. (shells, salt, gold)
What is the commodity money standard?
This U.S. organization creates money by minting and selling coins to federal reserve banks.
What is the U.S. Treasury?
The total dollar value of all final goods and services a nation’s industries produce within its borders in one year.
What is the GDP?
Expansion phase, Peak phase, Recession Phase, and trough phase
What are the 4 phases of the business cycle?
The term economists use to describe a sustained rise in the average price level.
What is Inflation?
The government now uses the stored metal for international trade not for backing money.
What is gold?
This system consists of the central bank of the government and is responsible for overseeing the issue of currency, regulating banking activity, and providing bank services to nation's commercial bank.
What is the federal reserve system or "the fed"?
The goods that have a life expectancy of more than one year.
What is Consumer durable goods?
The halt to rapid growth, limited raw materials, limited labor, and limited financial capital
What is the peak phase?
The total cost of a specific set of goods and services.
What is the value basket of goods?
A coin that contains a quantity of metal less than its face value.
What is a token coin?
This group of people consists of seven members and the president selects and congress confirms each member. They also dictate that American banks keep on hand the reserve requirements, a specific percentage of their deposits.
What is the board of governors?
The goods are expected to wear out within one year.
What is Consumer non durable goods?
The phase when the nation’s GDP rises, number of available jobs grow, the unemployment rate falls, and national income expands.
What is the expansion phase?
This bill aimed to stabilize the economy during the great depression adopted policies that caused inflation and deflation. Started the pattern of occasioning presidents to inflation.
What is the new deal?
A coin that contains an amount of gold or silver equal to its face value.
What is a full-bodied coin?
The legislation made the Fed free outside control in three way.
What is political, financial, and operational independence?
Services that include haircuts, income tax preparation, and education.
What are Consumer services?
When the consumers start to adjust their spending habits.
What is the recession phase?
Raising prices by the nation’s businesses, to have more profit or pass along higher costs of materials or labor
What is push cost inflation?
Money that does not have gold or something of substantive value backing it.
What is fiat money?
The leader of the Federal Reserve System, responsible for managing all aspects of its operations, including conducting monetary policy and promoting financial stability, and reports twice a year to Congress on the state of the nation's monetary policy.
What is the Chairman of the fed?
The difference between the dollar amount a nation takes in from the sale of exports and dollar amounts a nation to purchase imports.
What are net exports?
When low prices, high unemployment, and depressed income.
What is the trough phase?
This is used to measure the changes in the prices that affect a selected market basket of goods and services.
What is the consumer price index?