Embargo Vocabulary

SEC (Securities and Exchange Commission)

Agency dealing with the stock market

SPSC (Standard Products and Services Codes)

Agency making sure goods are safe

Reserve Requirement

Amounts banks are required to keep on deposit at Federal Reserve Bank

Federal Reserve System

Central banking system of the U.S.

Federal Open Market Committee

Committee of the Federal Reserve Board that meets regularly to set monetary policy

Credit Union

Nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates

Embargo

Official ban on trade or other commercial activity with a particular country

Regressive Tax

Tax that is the same for everyone

Demand Side Economics

Advocates use of government spending and growth in money supply to stimulate demand for goods and services and therefore expand economic activity

EPA (Environmental Protection Agency)

Agency of U.S. federal government whose mission is to protect human and environmental health

FOMC (Federal Open Market Committee)

Agency that deals with money supply

Defecit Spending

Excess government spending of funds borrowed instead of taxation

Default

Fail to pay

FDA (Food and Drug Administration)

Federal agency responsible for monitoring trading and safety standards in the food and drug industries

Bank

Financial institution licensed as receiver of deposits

Functions of Money

Medium of exchange, store of value, and unit of account

Discount Rate

Minimum interest rate set by Federal Reserve for lending to other banks

Fiscal Policy

Government adjusts spending levels and tax rates to monitor and influence nation's economy

Prime Rate

Lowest rate of interest at which money may be borrowed commercially

Monetary Policy

Macroeconomic policy laid down by the central bank

OSHA (Occupational Safety and Health Administration)

Protecting workplace, making sure work environment is safe

IRS (Internal Revenue Service)

Responsible for collection and enforcement of taxes

Balanced Budget

Revenues are equal to expenditures

Currency

System of money in general use in a particular country

Progressive Tax

Tax based on income

Estate Tax

Tax levied on the net value of estate of a decreased person before distribution to thei heirs

Excise Tax

Tax on tax for certain goods

Supply Side Economics

Theory that the supply of money, labor, and goods or services creates demand

Money Supply

Total amount of money in circulation or in existence in a country

National Debt

Total amount of money that a country's government has borrowed

Gold Standard

Value of a currency was defined in terms of gold, for which the currency could be exchanged