Unit 2

Question 1

A policy that combines increased government spending and tax cuts to spur economic growth

Answer 1

Expansionary Fiscal Policy

Question 2

An institution that safeguards, lends, and exchanges money. This was also destroyed by Andrew Jackson in the United States.

Answer 2

Bank

Question 3

When a company can offer a product at a lower-cost than other companies due to advantages such as technology and other conditions.

Answer 3

Natural Monolopy

Question 4

What goes into effect on October 1st, every year?

Answer 4

The Federal Budget

Question 5

Another name for a new business

Answer 5

Startup

Question 6

A member-owned financial institution and provides banking services to a particular group.

Answer 6

Credit Union

Question 7

Is another word for capitalism and is based primarily upon American’s right to own their own businesses.

Answer 7

Free Enterprise System

Question 8

A new form of money that is growing in popularity is

Answer 8

E-Cash

Question 9

Was created during the Woodrow Wilson administration

Answer 9

Federal Reserve System

Question 10

The regulation, or control, of the amount of money in circulation is

Answer 10

Monetary Policy

Question 11

What includes saving and loan associations and credit unions?

Answer 11

Thrift Institutions

Question 12

A way of paying off debt

Answer 12

means of payment

Question 13

Which Amendment is the Takings Clause part of?

Answer 13

Fifth

Question 14

Who sets policy at the Federal Open Market Committee meetings?

Answer 14

The Fed

Question 15

What must be sanctioned by the U.S. Department of the Treasury?

Answer 15

Commercial Banks

Question 16

What would the Fed do if they wanted to encourage growth by risking inflation?

Answer 16

Buy securities in the open market

Question 17

Which President eliminated any connection between the dollar and gold?

Answer 17

Richard Nixon

Question 18

Which of these describes the major importance of the Sherman Antitrust Act of 1890?

Answer 18

It was the first move of the government to regulate the economy.

Question 19

Who was the major obstacle to the spread of banking in Europe during the 1500s?

Answer 19

The Roman Catholic Church

Question 20

If the Fed wanted to slow down inflation, it would ___.

Answer 20

Sell securities in the open market

Question 21

In a(n) _____ or free enterprise economy, consumers make the economic decisions.

Answer 21

Market

Question 22

The National Football League enjoys a ___.

Answer 22

Legal Monopoly

Question 23

Which event led to a more centralized banking system in the new United States?

Answer 23

The Revolutionary War

Question 24

The Supreme Court case Kelo v. New London (2005) affirmed the government’s power of _______ domain.

Answer 24

eminent

Question 25

Within a market economy, _____ ensures that consumers have access to reasonable prices and a variety of choices.

Answer 25

competition