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19 Cards in this Set
- Front
- Back
exchange of one good for another
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barter
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Barter requires a coincidence of __________
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wants
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With the barter system you pretty much have to be a __________; barter system is primarily __________
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farmer, agricultural
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__________ allows you to specialize in an area you want to.
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Money
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Functions of Money that you have to have:
1. Medium of __________ - Primary function - __________ acceptance 2. Unit of __________ - Measures the relative value of __________ and __________ 3. __________ of Value - Absent from __________ - Threatened by __________ |
Exchange, wide, account, goods, services, store, barter, inflation
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Other Desirable Properties of Money that you don't necessarily need:
1. Scarcity - Threatened by __________ - U.S. __________ was created by Abraham Lincoln just for this. 2. Must be __________ and __________ 3. __________ |
counterfeiting, Secret Service, portable, divisible, uniformity
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a type of money that has a market value in other uses
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commodity money
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a type of money that is accepted by law and has no intrinsic value
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fiat money
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fiat is latin for __________
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let it be
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Money Supply Measurements:
M1 = __________+__________ M2= ____ + __________+ __________ |
Currency, Checkable Deposits
M, Savings Deposits, Small Time Deposits (<100,000) |
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The central bank of the U.S. founded in 1913 following the Bank Panic of 1907
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The Federal Reserve System
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The fed is independent of the __________, has a __________ report to Congress, but isn't __________ by Congress. Congress can __________ the Fed.
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government, biannual, funded, abolish
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There are __________ district banks in the Fed. Kansas City, MO houses the __________ district.
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12, 10th
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The Board of Governors have __________ members, where 1 is the __________.
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7, chairperson
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The members of the Board of Governors are appointed for ___ year, nonrenewable terms. The chairperson is nominated for a ___ year, renewable term.
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14, 4
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Most Recent Fed Chairs
1. 2. 3. |
Paul Volcker
Dr. Alan Greenspan Dr. Ben Bernanke |
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Federal Open Market Committee (FOMC)
____+__________+__________ The FOMC controls the money supply through the buying and selling of __________. |
BOG, NY Fed President, 4 other Fed District Presidents, T-Bills
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Other Functions of the Fed:
1. __________ money 2. __________ banks - Ex: FDIC 3. __________ protection - Consumer complains, Equal Credit Opportunity Act, Bureau of Consumer Financial Protection 4. __________ Checks 5. Maintaining the __________ account of the U.S. government 6. Maintaining the __________ supply |
circulating, regulating, consumer, clearing, checking, gold
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Bank only keeps a fraction of what you deposit
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Fractional Reserve Banking
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