Borrowing and Lending
What is a risk of borrowing money if you cannot pay it back?
Going into debt
What kinds of services do banks provide?
Storing Money, Loaning money for a business, Mortgage loans
What is a monopoly?
When a business has no competition
What is the purpose of taxes?
To support government programs and services
What is an example of an installment credit?
Mortgage
It is used by the bank to offer loans for other customers
What type of regulation is in place to stop monopolies from forming?
Antitrust Laws
Which of the following would local taxes support?
A) School District Funding
B) The Military
C) Interstate Highway cleanup
D) Federal programs
A) School District Funding
How do credit cards work?
You have access to a credit line that you can use (borrowed money) and you pay it back later.
What does the Federal Reserve do?
It regulates the money supply and sets borrowing rates for banks
Why is it important for businesses to have competition?
The business will be competing to get more customers by decreasing customer cost and increasing quality of goods. This constant competition allows the customer to get the best product for the best price.
What was the issue the colonists had with the taxation from Britain?
Taxation without REPRESENTATION
What is one advantage and one disadvantage of using credit?
Advantage: You can purpose things you might not have available cash for
Disadvantage: You have to pay interest, if you do not pay back you can go into debt
It allows people to start businesses and create more opportunities for people to buy/sell things. Those businesses create new job opportunities that allows people to make income and stimulate the economy.
If you were starting a business what could a potential competitor help you learn?
What they are doing that is successful/unsuccessful
Taxes can be collected by the Federal, State, and Local governments. What type of power would this be listed as since ALL of them can do it?
A) Reserved Power
B) Concurrent Power
C) Delegated Power
B) Concurrent Power