Economics, Unit 2

fiscal policy

the manner by which the U.S. government uses the federal budget to direct the national economy

Federal Open Market Committee

the policymaking arm of the Federal Reserve System that includes members of the Board of Governors and some of the presidents of the various Federal Reserve banks

eminent domain

the practice of the government taking private property for the public good or for public use

right to choose

the right of Americans to choose what they buy and how much they spend without government pressure

Q1) Which answer is NOT a component of the free enterprise system?

the right to make consumers pay

M1

the total amount of money held by individuals and companies, as well as all travelers' checks and checkable deposits owned by individuals and companies

Federal Reserve districts

the twelve districts of the Fed, each with a corresponding bank that is responsible for carrying out the Fed's policies

Q2) A(n) ________ deposit pays higher interest but restricts when funds may be withdrawn.

time

2) A(n) ______ is a savings instrument that pays higher interest but restricts when funds may be withdrawn.

time deposit

vvv Lesson 6 vvv

vvv Lesson 6 vvv

vvv Lesson 7 vvv

vvv Lesson 7 vvv

vvv Lesson 8 vvv

vvv Lesson 8 vvv

vvv Lesson 9 vvv

vvv Lesson 9 vvv

vvv Practice Test vvv

vvv Practice Test vvv

vvv Quiz 1 vvv

vvv Quiz 1 vvv

vvv Quiz 2 vvv

vvv Quiz 2 vvv

vvv Quiz 3 vvv

vvv Quiz 3 vvv

7) Why are checks not money?

Checks only authorize banks to transfer money.

7) The part of the Fed that makes the economic policies that run the economy is the ___.

Federal Open Market Committee

Q1) In which amendment can one find the "Takings Clause"?

Fifth Amendment

6) Which answer is an example of competitors colluding to artificially set prices?

Food vendors at a state fair agree to set similar prices.

7) Which actions did the Fed take during the 2008 "Great Recession"?

It reduced the reserve requirements and lowered the discount rate to stimulate economic growth.

7) The power of the government to take private property was extended in 2005 with the ___ Supreme Court case.

Kelo v. New London

M2

M1 plus savings deposits, time deposits, money market funds, and any other type of deposit

9) What is a criticism of the World Bank?

Many developing nations have been unable to repay loans.

10) By which time must Congress and the President pass a federal budget for the next fiscal year?

October 1st

Q3) Congress and the President are responsible for passing a federal budget before ___ of each year.

October 1st

Q3) Which President was responsible for eliminating all connection between the dollar and gold?

Richard M. Nixon

2) President ___ took the United States off of the gold standard in 1971.

Richard Nixon

Q2) Who was the major obstacle to the spread of banking in Europe during the 1500s?

Roman Catholic Church

4) The _______ Clause allows the government to confiscate private property if it provides "just compensation."

Takings

11) Select TWO ways that technology increases the likelihood of profit and economic growth.

Technology increases the productivity of workers. The more a worker can produce, the more profit can potentially be earned as a result. Technology spurs economic growth by helping workers find new, more efficient ways to produce.

6) ______ Commercial banks accept checkable deposits, savings deposits, and time deposits. (t) ________ Time deposits have a very low interest rate, and you can withdraw the money anytime you want. ______ A savings and loan association is exactly like a commercial bank. ______ A credit union is unique in that it is owned by members of a particular group of people, like teachers or federal employees. _______ Thrift institutions refer to commercial banks like Wells Fargo or Bank of America.

True False False True False

1) ________ paper money (notes) and coins ________ an exchange of a good or service for another good or service; depends upon a double coincidence of wants _________ M1 plus savings deposits, time deposits, and money market funds, as well as any other type of deposit _______ an electronic version of paper money _______ an electronic version of a paper check _______ money that is recognized and ordered to be such by a government _______ the total amount of money held by individuals and companies, as well as travelers' checks and checkable deposits owned by individuals and companies ______ a way in which to pay off a debt _______ this term refers to anything that is generally accepted by a society as a means of payment

currency barter M2 e-cash e-check fiat M1 means of payment money

Q2) _____ Space inside safes was rented to others in order to protect gold. _____ Insurance and securities companies were allowed to offer banking services ______ Chinese merchants stored money in one place and used it in another. ______ If a bank closed, American depositors' money was guaranteed.

emergence of artisan bank introduction of the Gramm- ??? invention of "flying money" creation of the Federal De-

savings and loan association

a member-owned financial institution that accepts checkable and savings deposits and makes loans

credit union

a member-owned financial institution that provides banking services to a particular group of people

startup

a new business created by an entrepreneur

pursuit of profit

a part of the free enterprise system that provides an incentive for business owners to provide products and services

security

a representation that shows ownership of a business or loan; includes stocks and bonds

time deposit

a savings instrument that pays higher interest but restricts when funds may be withdrawn

collusion

a situation in which competitors work together to artificially set prices

thrift institutions

a term to describe savings and loan associations, savings banks, and credit unions

means of payment

a way of paying off a debt

13) In 2008, about how many banks participated in the Federal Reserve System?

about 3,040

Q2) An agreed-upon scale of worth for goods is a unit of ______.

account

Q1) What is the major obstacle for Americans to own their own businesses?

age

monopoly

an absence of competition within a particular market of a good or service

federal budget

an annual account of government revenue and expenditures

budget deficit

an economic condition in which government expenditures exceed revenue

balanced budget

an economic condition in which government expenses are equal to revenue

budget surplus

an economic condition in which government revenue exceeds expenditures

e-cash

an electronic version of paper money

barter

an exchange of a good or service for another good or service; depends upon a double coincidence of wants (the idea that both trading partners have something the other wants and are willing to give it up)

9) Which of these describes the function a debit or credit card serves when it is used to purchase something?

an identification card to approve transfers

8) Without private property rights, people ___.

do not have an incentive to invest or work

Q2) An electronic version of paper money that is becoming more popular is called _______.

e-cash

Q2) Which role do credit and debit cards play when they are used to make a purchase?

an identification card to approve transfers

Q3) Which government move would be an example of automatic fiscal policy?

an increase in welfare spending because more people qualify for benefits

stimulus

an injection of money into circulation to try and stimulate economic growth

bank

an institution that safeguards, lends, and exchanges money

cartel

an international monopoly that controls and regulates a particular product, such as OPEC and the world supply of oil

free enterprise system

another word for the capitalist system; an economic system in which people have the freedom to buy and create business, controlling the factors of production; also comprised of competition and private property

Q3) A(n) _____ budget exists when government revenues and expenses are the same.

balanced

1) _______ an institution that safeguards, lends, and exchanges money ______ an addition of new capital (money) to an account (includes checkable, savings, and time deposits) ________ backed by a valuable item such as gold ______ anything that is generally accepted by a society as a means of payment ______ a representation that shows ownership of a business or loan; includes stocks and bonds ______ the practice of lending money at extreme interest _______ something such as livestock that has a value apart from its value as money _______ in banking, the removal of capital (money) from a bank

bank deposit representative money money security usury commodity money withdrawal

4) ___ is the struggle for supremacy between rivals that provide the same product or service as another company.

competition

5) When there is a lack of _______, entrepreneurs and companies may try to take advantage of consumers.

competition

Q1) When there is a lack of ______, businesses are more likely to take advantage of consumers.

competition

Q1) The key to the market economy is that basic economic decisions are ultimately made by ______.

consumer

Q1) The importance of the right to private property is the ability to _______.

make profit in the sale or operation of private property

6) The control and regulation of the amount of money in circulation, a key responsibility of the Fed, is known as ___ policy.

monetary

representative money

money backed by a valuable item, such as gold

fiat money

money that is recognized and ordered to be such by a government

Q1) The absence of any competition within a particular market of a good or service is a(n) ________.

monopoly

store of value

one of the three functions of money; the ability of money to hold its value while not being spent (allows money to be saved or invested)

Q1) The free enterprise system is based primarily upon the right of Americans to ________.

own their own business

9) _______ American Telephone and Telegraph (AT&T) _______ OPEC _______ U.S. Post Office _______ Solomon's Mines, home of the world's only purple diamonds

ownership monopoly cartel legal mono

currency

paper money (notes) and coins

Q1) _____ competition in a free enterprise system creates the best environment for consumers' freedom and security.

perfect

4) All Americans are allowed to pursue _____ as far as their creativity, talent, and hard work allow.

profit

Q1) The pursuit of ______ is legitimate because entrepreneurs assume the risk of a business and need to provide for themselves and their families.

profit

Q1) The Takings Clause allows the government to practice eminent domain, or the taking away of property if the government ________.

provides fair payment for the property

6) "...nor shall private property be taken for ___________ use, without just compensation."

public

1) ______ a component of a free enterprise system that creates incentive for business owners to provide products and services _______ rivals that deal in similar products or services _______ complete control over a product or market with little or no competition _______ an industry with few competitors and high entry barriers _______ a situation in which competitors work together to artificially set ________ an international monopoly ________ creates a large market with many options for the consumers ________ a competitive advantage not legally or purposefully created ________ competitive advantage created or protected by law ________ a new company started by an entrepreneur

pursuit of profit competition monopoly oligopoly collusion cartel perfect competition natural monopoly legal monopoly startup

3) ____ is the ability of money to hold its value while not being spent.

store of value

Q3) A budget ______ is the economic condition that exists when the government takes in more taxes than they expend.

surplus

New York Fed

the Federal Reserve bank tasked with implementing the Fed's monetary policy

Chair

the head of the Board of Governors of the Federal Reserve System; the spokesperson for the government on matters of monetary policy

discount rate

the interest rate with which the Federal Reserve System loans money to member banks (This is normally indicative of the interest rates banks charge customers for loans.)

Q2) Which of the following is a function that money serves?

- store of value - unit of account - medium of exchange

8) In the United States, there are ___ Federal Reserve districts, each with its own bank that oversees the banking and financial institutions within its borders.

12

1) President ___ was responsible for the dismantling of the first national bank of the United States.

Andrew Jackson

5) At the top of the Federal Reserve System is a seven-member panel known as the ______.

Board of Governors

4) Why would a credit union appeal to a depositor?

Credit unions are member-owned and return any profit to members.

3) What was the effect on European economies after banking grew more common?

European countries grew in wealth and power and in dominance over lesser developed areas.

11) In 2013, a controversy developed in Irwindale, California, between owners of a hot sauce factory and neighboring residents. The problem centered on strong smells that spread from the factory due to the processing of peppers to create the hot sauce. Residents reported a burning sensation in their throats and eyes caused by the pepper odors. The owner of the factory defended himself by pointing to the fact that his factory provided many jobs and much revenue for the city. What should the government consider before creating a regulation to resolve this situation?

Government regulation, if warranted, should have a specific and clear purpose.

6) Which of these was the result of the Fed responding to the 1969 recession by putting more money into circulation?

Inflation became a problem throughout the 1970s and 1980s.

2) Use the chart to answer the question. When the Fed sells securities, which of the following happens?

Interest rates increase.

2) a new company started by an entrepreneur

It established that the government had a duty and right to regulate the economy. It only applied to interstate laws and was weak and easily avoidable. It was signed into law by President Harrison in 1890

Q1) What was the significance of the Supreme Court case Kelo v. New London (2005)?

It gave the government more power in practicing eminent domain.

10) Select THREE facts about the International Monetary Fund (IMF).

It has 188 countries as members. The fund seeks to secure international financial stability. It seeks to promote growth and reduce poverty.

2) Select THREE facts about the free enterprise system.

It must allow for competition and private property rights. It is another word for the capitalist system. People have the right to own their own businesses and to control the factors of their production.

Q2) Which of these differentiates a credit union from other financial institutions?

It only serves a certain group of people.

5) ___ is something that is accepted in return for a good or service.

Medium of exchange

Q2) In which part of the world can one find the first evidence of banking-like institutions?

Mesopotamia

9) The most important of the Federal Reserve districts is the Federal Reserve Bank of ___.

New York

Q3) The Federal Reserve bank responsible for beginning all Fed policy is based out of ___.

New York

7) _______ allows the greatest freedom and security for consumers.

Perfect competition

2) The ___ movement resurrected the call for a new national bank.

Progressive

Q3) The _____ movement was instrumental in the creation of the Federal Reserve System.

Progressive

3) According to the "Economics in the News" article, which of the following has happened to the U.S. economy since the elimination of the gold standard?

The United States has experienced higher unemployment, slower growth, and a general decline in economic stability.

Q2) What was the impact of the gold and silver the Spanish and Portuguese discovered in the Americas during the 1500s?

The amount of gold and silver devalued the worth of the world supply of the materials.

10) Why is the pursuit of profit legitimate?

The pursuit of profit is legitimate because everyone has a right to earn a living, and entrepreneurs and companies take on risk when they provide goods and services.

5) Which of these was the result of the Fed lowering the reserve requirement during the 1950s?

The result was an economic boom.

4) The central bank only deals with ___.

U.S. banks

9) Which government move would be an example of automatic fiscal policy

Unemployment benefit payments decrease as employment increases.

4) ___ is the ability of money to hold its value while not being spent.

Unit of account

7) Why is the United States concerned about China's devaluation of the yuan?

When large economies like China have undervalued currency it could badly impact smaller economies. And because China forces its currency lower, trading partners have to spend more money. There is the concern that thousands of jobs could be lost in the U.S. due to China's policies.

3) The Federal Reserve System was created as part of the agenda of President ___.

Woodrow Wilson

Q3) Who was responsible for the creation of the Federal Reserve System?

Woodrow Wilson

9) What was the result of the lack of property rights in the Soviet Union?

Workers and businesses were not very productive.

8) The Bank for Reconstruction and Development is simply known as the ______.

World Bank

10) In the "Economics in the News" article, the Idaho Court of Appeals said that the city of Emmitt had overstepped its bounds by confiscating property without attempting to gain ___.

a binding agreement

savings bank

a financial institution that only accepts savings deposits and makes loans to individuals

6) Select TWO things that are considered money in the United States.

a five-dollar bill in your pocket the coins you used to buy a soda

Q1) What is a startup?

a new business created by

deposits

additions of new capital (money) to an account (includes checkings, savings, and time deposits)

6) What is the main factor that limits an American's ability to own a successful business?

age

e-check

an electronic version of a paper check

oligopoly

an industry with few competitors and high barriers to entry

money

anything that is generally accepted by a society as a means of payment

commercial bank

authorized by the Comptroller of the Currency of the U.S. Department of the Treasury; a financial institution that accepts deposits and makes loans

Q3) The federal _____ is an annual document created by Congress detailing government taxes and spending.

budget

Q3) Which answer is NOT an economic tool of the Federal Reserve?

budget line-item veto

Q2) A(n) _________ is not money, but merely authorizes banks to transfer money.

check

Q1) Consumers have the right to ________ what to buy in a market economy.

choose

Q2) Which of the following would be considered currency?

coins

Q2) In order to operate, a _______ bank must be authorized by the Comptroller of the Currency of the U.S. Department of the Treasury.

commercial

Q2) Paper money and coins are _____.

currency

Q3) A recipe for fixing a budget deficit is for the government to __________.

cut expenditures

Q2) A medium of _______ is something accepted in return for a good or service.

exchange

Q3) A(n) _____ fiscal policy encourages economic growth through tax cuts, a decrease in industrial regulation, increased government spending, or a combination of factors.

expansionary

Q1) A free market economy allows citizens to control the _______ of production.

factors

Q2) The money that is established by law to be money is called ___.

fiat money

3) The constitutional protection of private property is found within the _______ Amendment.

fifth

contractionary fiscal policy

fiscal policy that combines a reduction of government spending with tax hikes to curtail economic growth

expansionary fiscal policy

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

discretionary fiscal policy

fiscal policy that is created by an act of Congress

automatic fiscal policy

fiscal policy that is created in response to the state of the economy

2) The protection of private property is essential to the ______ system.

free enterprise

withdrawal

in banking, the removal of capital (money) from a bank

Q1) If there are no private property rights, people have no ________ to invest or work.

incentive

Q3) The Fed's move to put more money into circulation in response to the 1969 recession led to ______ during the 1970s and 1980s.

inflation

Q1) The Clayton Antitrust Act differed from the 1890 law in that _____.

it ended harmful monopolies and created the Federal Trade Commission

Q1) The importance of the Sherman Antitrust Act of 1890 is that _______.

it established that the government has a right to regulate the economy

Q3) President Andrew Jackson wanted to get rid of the Bank of the United States because ___.

it was not answerable to the public and had become too powerful

5) The U.S. government has gradually become more involved in the economy since the ___.

late 1800s

Q1) When did the US government begin its involvement in the economy?

late 1800s

Q1) The National Football League enjoys a ________.

legal monopoly

Q1) When one company can offer a product at a lower price than other companies due to some advantage, it is said that it can create a _______.

natural monopoly

4) _______ prepares an annual budget that is presented to Congress ______ lends money to banks and thrift institutions ______ supervises banks and thrift institutions ______ controls the money supply and issues currency ______ negotiates financial treaties with other countries ______ acts as the agent of the United States' economic policy ______ establishes tax rates

not a function function function function not a function function not a function function

Q1) A(n) _______ occurs when there are few competitors and high barriers to entry within an industry.

oligopoly

unit of account

one of the three functions of money; an agreed-upon scale of worth for goods and services

medium of exchange

one of the three functions of money; something that is accepted in return for a good or service

Q1) "...nor shall ________ property be taken for public use, without just compensation."

private

1) _________ is the right of Americans (or anyone) to own property and to sell it for profit.

private property

Q1) In a market or free enterprise economy, competition ensures ________.

reasonable prices and consumer choice

8) Which of these does competition ensure in a free enterprise economy?

reasonable prices and options for different goods and services

Q3) The power of creating monetary policy is the power to _____.

regulate how much money is in circulation in order to influence the economy

Q3) During the 2008 financial crisis, the Fed reduced _____ requirements and lowered the discount rate to encourage growth.

reserve

3) Americans have the ___ what they buy, without government pressure.

right to choose

Q2) A means of payment is a way of ___.

settling a debt

2) Which answer is NOT a function of money?

statement of deposit

Q3) A(n) ___ is an increase of circulated money that is meant to stimulate economic growth.

stimulus

Q2) The ability of money to hold its worth is a measure of its _________ of value.

store

14) Who appoints the members of the Board of Governors?

the President of the United States

Q2) Which event led to a more centralized banking system in the new United States?

the Revolutionary war

Q1) A lack of property rights contributed to the economic demise of ________.

the Soviet Union

open market operations

the actions of the Federal Reserve System to impact the demand of money, inflation, and economic growth

Federal Reserve System

the central bank of the United States that dictates monetary policy and is made up of the Board of Governors, the Federal Open Market Committee, and the Federal Reserve districts and banks; informally known as " the Fed"

dollar-gold convertibility

the circulation of dollars that are supported by gold reserves

Q3) Which of these are the long-term effects of the total elimination of the gold standard?

the economy as a whole fluctuating much more unpredictably

competition

the existence of rivals who are involved in the same product or service as another company

8) Who authorizes fiat money?

the government

Board of Governors

the head of the Board of Governors of the Federal Reserve System; the spokesperson for the government on matters of monetary policy

Central bank

the main regulatory institution in a country that manages the supply of money in an economy

required reserve ratio

the percentage of deposits banks must hold on to at the request of the Federal Reserve System

usury

the practice of lending money at extreme interest

monetary policy

the regulation of the amount of money in circulation

legal monopoly

the restriction of competition because of government action or law

private property

the right of Americans (or anyone) to own property and sell it for profit

4) When the Spanish and Portuguese discovered gold and silver in the Americas in the 1500s, _____.

the world's supply of gold and silver devalued because there was so much of it

vvv Lesson 1 vvv

vvv Lesson 1 vvv

vvv Lesson 2 vvv

vvv Lesson 2 vvv

vvv Lesson 3 vvv

vvv Lesson 3 vvv

vvv Lesson 4 vvv

vvv Lesson 4 vvv

vvv Lesson 5 vvv

vvv Lesson 5 vvv

natural monopoly

when one company dominates by providing service that is better and/or lower-cost than that of other companies because of technology or other conditions

Q2) Which of the following would NOT be an example of money?

your first credit card

10) In October 2010, the amount of money held by individuals and companies was $893.4 billion; checkable deposits owned by the same individuals and companies were $345.6 billion; money market funds were $1.9423 trillion; savings deposits were $989.4 billion; finally, time deposits were $243.8 billion. What is the M1 for October 2010?

$1.24 trillion or $1,239 billion

Q2) In October 2010, the amount of money held by individuals and companies was $987.1 billion; checkable deposits owed by individuals and companies were $567.3 billion; money market funds were $1.045 trillion; savings deposits were $562.3 billion; time deposits were $324.2 billion. What was the M1 amount in October 2010?

$1.55 trillion

11) In October 2010, the amount of money held by individuals and companies was $893.4 billion; checkable deposits owned by the same individuals and companies were $345.6 billion; money market funds were $1.9423 trillion; savings deposits were $989.4 billion; finally, time deposits were $243.8 billion. What is the M2 for October 2010?

$4.41 trillion or $4,414.5 billion

12) How many of the Federal Reserve bank presidents serve on the Federal Open Market Committee?

5

Q3) Fiscal policy is the responsibility of ___.

Congress and the President

10) Select FOUR facts about the Federal Reserve.

Congress can review Fed activities and create laws to change its responsibilities. It is a private organization that works within the government. It is the central bank of the United States. It moderates the ups and downs of the business cycle.

3) Select THREE facts about time deposits.

Depositors benefit by receiving higher interest rates. Another name for a time deposit is a certificate of deposit (CD). Banks benefit by knowing the money will not be withdrawn before a certain date.

3) Use the chart to answer the question. When the Fed buys securities, which of the following happens?

Economic growth increases.

2) What prevented banking services from emerging sooner in Europe?

The Catholic Church did not approve of charging interest on borrowed money.

8) Which statement is a criticism of the Fed's actions to stabilize the economy during the 2008 financial crisis?

The Fed might have moved into a position where there will be little it can do during the next crisis.

4) Which of these was the Fed's response in the early stages of the Great Depression?

The Fed took no action.

3) Select TWO facts about the Clayton Antitrust Act.

The Federal Trade Commission (FTC) was created by the Act. It broke up some harmful monopolies while leaving others alone.

1) ________ In the United States, anyone can sell anything they want, within certain limits. (t) _________ The government often interferes in the economy on behalf of business owners. (f) ________ The free-market economy allows citizens to decide upon and control the factors of production. (t) ______ A certain amount of government regulation is a part of a true market economy. (t) ______ One factor that leads people to operate their own business is the pursuit of profit. (t)

True False True True True

commodity money

commodity such as livestock that has worth apart from its value as money

11) One way the government can fix a budget deficit is by ___.

cutting back on spending

11) In which Federal Reserve district do you live?

dallas

Q3) Which would be an example of contractionary fiscal policy?

decrease in government spending

1) _______ This determines the rate at which the Fed will lend reserves to commercial banks and thrift institutions. _______ This regulates the amount of deposits a bank keeps on hand in the form of money. ______ The Fed lowers this to spur spending or increases this to fight inflation. _______ This is the selling and buying of government securities to manage the economy and money supply. ______ Reducing this increases the amount of money banks have to lend. ______ This affects the amount of money that is in circulation.

discount rate required reserve ratio discount rate open market operations required reserve ratio open market operations

Q3) When Congress creates an act that affects fiscal policy, it is considered a(n) ________________ fiscal policy.

discretionary

5) The term ________ refers to the government taking private property for the benefit of the community and city as a whole.

eminent domain

1) ______ fiscal policy that combines increased government spending and tax cuts to spur economic growth _______ fiscal policy that is created in response to the state of the economy _______ an economic condition in which government expenditures exceed revenue _______ fiscal policy that is created by an act of Congress _______ an annual account of government revenue and expenditures _______ the manner by which Congress and the President use the federal budget to direct the national economy ______ an economic condition in which government expenses are equal to revenue ______ the circulation of dollars that are supported by gold reserves ______ an injection of money into circulation to try and stimulate economic growth ______ an economic condition in which government revenue exceeds expenditures ______ fiscal policy that combines a reduction of government spending with tax hikes to curtail economic growth

expansionary fiscal policy

5) ________ allowed Chinese merchants to keep money in safe places and use it elsewhere _______ guaranteed American depositors' money if their bank closed ________ the first bankers in Europe who held gold in safes and rented space in their safes _______ the place where banking, in its truest sense, first developed _______ acked a common, central banking system until the Revolutionary War ______ led to the organization of banking in the United States ______ allowed insurance and securities companies to offer banking services

flying money the Federal Deposit artisan bankers Mesopotamian civilizations Great Britian's American --- Hamilton's creation of a na-- Gramm-Leach-Bliley Act

1) _______ This member-owned financial institution encourages saving by accepting checkable and savings deposits and making loans. _______ A traditional bank, it is authorized by the Comptroller of the Currency of the U.S. Department of the Treasury, accepts deposits, and makes loans. ________ This financial institution only accepts savings deposits and makes loans to individuals. _______ This member-owned financial institution provides banking services to a particular group of people, such as a steelworkers union.

savings and l can association commercial bank savings bank credit union

5) Which type of bank was created to encourage people to save for large purchases such as homes?

savings and loan associations

11) Which of these falls under the category of thrift institution?

savings bank

Which of the following would be an example of a thrift institution?

savings bank

perfect competition

situation in which there are many possible sources for consumers to visit and purchase the same product