Stocks
If you own shares or stocks in a company what does that make you?
A Shareholder
acceptable: Stockholder
How many Functions of Money did we discuss in class?
3
What are the 3 Functions of Money that we discussed in class?
Store of Value
Medium of Exchange
Unit of Account
What year was the Federal Reserve established?
1913
What year was the Federal Reserve reformed to centralize their control?
1935
Which type of stock will allow a stockholder to receive their dividends and their investment money back first?
Preferred Stock or Common Stock
Preferred Stock
What is bartering?
Trading one good or service for another good or service.
TRUE OR FALSE? Bartering is not effective in our economy today because of our modern technologies.
True
Who is the current Chairman of the Federal Reserve?
Jerome Powell
What major city is our district's Federal Reserve Bank located in?
Atlanta
What is one positive of being a stockholder in a company?
Limited Liability. Stockholders do NOT carry responsibility for the company's actions.
Which Function of Money preserves value over time?
Store of Value
Which Function of Money allows you to compare prices between goods and services?
Unit of Account
How many districts are in the Federal Reserve?
12
Who appoints the Board of Governors?
The President
approved by the Senate
Why do companies sell stocks?
To gain Financial Capital = to make money
Give a scenario showing a Store of Value
You deposit $50 into your savings account
What is a Medium of Exchange?
Spending cash to get a good or service in return
How many members are there on the Board of Governors?
7
What are 2 reasons that the Federal Reserve was established?
Give a scenario showing a Unit of Account
You compare the price of two cars: one costs $20,000 and the other $25,000
Give a scenario showing a Medium of Exchange.
You spend $20 on a ticket for a school football game.
What is one of the 4 functions of the Federal Reserve?
Serves the Government
Serves the Banks
Regulates the Banking Systems
Regulates the money supply
Who makes up the Free Open Market Committee (FOMC)?
7 members of Board of Governors + 5 Bank presidents