unit 5

Question 1

what does bartering rely on

Answer 1

double coincidence of wants

Question 2

why was money created

Answer 2

bartering relied on double coincidence of wants

Question 3

what are m1 and m2 designed for

Answer 3

to make money more useful

Question 4

what are m1 and m2 designed for

Answer 4

to make money more useful

Question 5

What did the national currency act do

Answer 5

1863
created the National Banking System
soon national currency (national bank notes) replaced various state currencies

Question 6

when did the gold standard start and with what

Answer 6

1900

Gold Standard Act

Question 7

when did the gold standard end

Answer 7

1971

Question 8

when did the gold standard end

Answer 8

1971

Question 9

when was the fed created

Answer 9

1913

Question 10

what is the fed

Answer 10

nation’s central bank, lending money to other banks

replaced all other federal currency

Question 11

what is fractional reserve banking

Answer 11

creates money by loaning out money

Question 12

financial priorities

Answer 12

earn
give to God
save
spend wisely

Question 13

financial priorities

Answer 13

earn
give to God
save
spend wisely

Question 14

what are you doing when you buy stock

Answer 14

buying part of the company and becoming a part owner, stockholder, shareholder

Question 15

what do you call what the year looks like

Answer 15

capital gain, capital loss

Question 16

what happens in a bond

Answer 16

bondholder lends money for a set time, called the maturity

Question 17

what promise does a bond come with

Answer 17

fixed interest you’ll be paid probably twice a year

Question 18

bond is another word for

Answer 18

the name for the certificate you are given when you allow a company or the government to borrow your money

Question 19

savings bond

Answer 19

tool government uses to pay its debt and get into further debt

Question 20

what happens when a person deposits money

Answer 20

he is paid interest, and his money is loaned to a borrower at a higher interest rate

Question 21

where does a broker work

Answer 21

a brokerage firm

Question 22

where does a broker work

Answer 22

a brokerage firm

Question 23

stock exchange

Answer 23

places or electronic where brokers buy and sell stock

Question 24

largest stock exchanges

Answer 24

NYSE
NASDAQ
London
Tokyo

Question 25

what is a mutual fund

Answer 25

investment company pools money of many individuals to buy a variety of stocks, bonds, and other investments

Question 26

index funds

Answer 26

Dow Jones | S&P

Question 27

how to measure the economy

Answer 27

output | income

Question 28

broadest measure of economy's size is

Answer 28

GDP

Question 29

how is GDP estimated

Answer 29

scientific sampling

Question 30

top GDPs for states

Answer 30

``` California Texas New York Florida Illinois ```

Question 31

bottom GDPS for states

Answer 31

rhode island montana Vermont

Question 32

world gdp

Answer 32

75,000,000,000,000

Question 33

growth rate

Answer 33

gone from 3% to less than 1%

Question 34

growth rate

Answer 34

gone from 3% to less than 1%

Question 35

colonial household

Answer 35

5.8

Question 36

consequences of growth

Answer 36

too fast means overcrowding, drained resources too slow means lack of workers, production not paying attention can cause massive problems in infrastructure

Question 37

projected trends

Answer 37

aging is an increasing burden on the young to provide for the oldlow fertility rate - 2.119

Question 38

reasons for income inequality

Answer 38

``` education wealth distribution decline of unions discrimination changing family structure advances in technology ```

Question 39

wealth distribution

Answer 39

top 1% has 37% of wealth | bottom 80% has 12.3%

Question 40

what does poverty do

Answer 40

hurts entire population

Question 41

average length of a business cycle

Answer 41

6 years

Question 42

recession

Answer 42

contraction real GDP declines for at least 6 months begins at peak ends at trough

Question 43

expansion

Answer 43

recovery real GDP, income, and employment are up begins at trough, ends at peak

Question 44

depression

Answer 44

severe recession

Question 45

government activity

Answer 45

fiscal policy (tax and spend) and monetary policy (money supply)

Question 46

government activity

Answer 46

fiscal policy (tax and spend) and monetary policy (money supply)

Question 47

external factors

Answer 47

wars, availability of materials such as oil, immigration

Question 48

psychological factors

Answer 48

reactions

Question 49

what must be considered to measure GDP

Answer 49

inflation

Question 50

what does inflation do

Answer 50

causes dollar to lose purchasing power

Question 51

about deflation

Answer 51

hasn't happened since 1950 and rare in world for last 100 years

Question 52

what does unpredictable inflation do

Answer 52

destabilizes economy

Question 53

full employment is considered

Answer 53

less than 5%

Question 54

thing about unemployent

Answer 54

underground economy