Unit 5 vocab Flashcards
(34 cards)
Barter economy system
A system of exchange where goods or services are directly exchanged for other goods or services without using money.
Monetary unit
Something that holds value and circulates throughout the economy.
FED
The bank that regulates the country’s monetary and financial system.
FDIC
The Federal Deposit Insurance Corporation that helps the bank stay away from failure.
Inflation
A rise in price on most goods and services in the country.
Deflation
A decrease in the prices on most goods and services in the economy.
Sin tax
A tax that is placed on goods that are deemed as bad but not illegal.
Sales tax
A tax placed on many goods.
Individual income tax
A tax that people pay to the government from their income.
Fiscal year
Tax year
Budget deficit
When the government spends more money than it takes in.
Budget surplus
When the government spends less than it takes in.
Excise tax
A tax on a few specific goods
Estate tax
A tax on an estate
Gift tax
A tax placed on a gift over a certain amount.
Crowding out
When a personal investment decreases.
Crowding in
When a personal investment increases.
Fiscal policy
The use of government revenue collection and expenditure to influence the economy.
Aggregate supply
The total amount f money in the economy.
Aggregate demand
The total amount of money being spent in the economy.
Aggregate equilibrium price
Where the aggregate supply and demand work together at one point.
Board of governors
People that oversee the bank
Federal reserve district banks
The individual banks in charge of banking activity within a certain area.
Federal Open Market Committee (FOMC)
A committee which oversees the nations open market operations.
