LifePac Grade 12 Economics: Unit 7 Self Test 3

infidel

"But if any provide not for his own, and specially for those of his own house, he hath denied the faith, and is worse than an ____________.

No rival competition or alternative markets Lower quality Limitation or eliminations of certain goods Poor service and attitude Higher prices

Five dangers of a monopoly

Clayton Antitrust Act

In 1914 the _________________________ prevented a merging of corporations to have intertwining boards of directors.

Matthew

Jesus taught financial responsibility to the government. The passage is found in __________________ 17:27.

bankruptcy court

Legal proceedings that deal with the concerns of those who declare insolvency are held in a ___________________________________.

The Fed was started in 1933.

Which statement is NOT true? The U.S. Treasury, through its Bureau of the Mint and Bureau of Engraving and Printing, produces the nation's money supply. There are 12 Federal Reserve Banks nationwide, and each serves a specific region of the country, along with the Board of Governors in Washington, D.C. Some monopolies are good. The Fed was started in 1933.

Deregulated Investor Owned Utilities are known as IOU's.

Which statement is TRUE? Deregulated Investor Owned Utilities are known as IOU's. The Marshall Plan was an anti-monopoly act which awarded the victim of a monopoly three times the amount that his business lost. In deregulation,, government tightens controls and does not allow other companies to enter the market.

the act of being declared legally insolvent

bankruptcy

a governmental regulation; a mandate which is instituted to safeguard the purchaser

consumer protection law

the droppings or relaxing of restrictions and limits

deregulation

a Federal reserve-set interest rate to determine the amount needed to pay back the load

discount rate

the dividing, sale, or liquidation of a corporation

divestiture

a principle or value

ethic

a government investment in businesses, guaranteeing repayment

government securities

central points of business

hubs

Truth-in-Lending, Equal Credit Opportunity, and Home Mortgage Disclosure

laws created by the Fed

the right to take, sell, or hold property as security or payment for a debt

lien

a huge union of large corporations or utilities

mega-merger

the combining of two or more corporations or businesses

merger

no rivals or competitors in the marketplace

monopoly

one company or even a small group of cooperating companies has control of the supply of a product

monopoly

purchase or sale of government securities, to increase or decrease amount of money banks can lend

open-market operations

the responsibility to pay debts and due notes

personal liability

guidelines for controlling costs and expenditures by the consumer

price-setting standard

those that are in support of something

proponents

amount of money the Fed needs to have as a balance

reserve requirements

realigning or adjusting to meet new qualification or needs

restructuring

obligation to pay to another a certain amount of money which has collateral that the creditor may seize

secured debt

work done for others

service

growth through successful scientific research and strength

technological advance

anti-monopoly act awarded victim of a monopoly three times amount his business lost

Sherman Antitrust Act of 1890

electric companies

Some monopolies are not functioning to drive prices up and competitors out; they serve the public. An example is ___________________________________.

4

The California customer, instead of being held to paying the one price that a utility would force them to pay, now has their choice between Pacific Gas and Electric, San Diego Gas and Electric, Southern California Edison, and _____ other utilities throughout the state.

distribute the cash to financial institutions

The Fed Banks

independent

The Fed is an ___________________ agency of the United States government.

rules on applications from banks who want to merge

The Federal Reserve

credit reserve

The Federal Reserve System has the authority to expand __________ in case of national emergency, power to set limits on the ______________, and manage America's supply of money.

stock market

The Securities and Exchange Commission regulates the ________________________.

liquidation

The debtor surrenders his nonexempt property for division among his creditors, but will still be obligated to pay any debts that the bankruptcy court determines have not been forgiven by the division among the creditors. This is known as ____________________.

Romans 13:8

The exhortation by Paul in _______________________ is to "owe no man anything," meaning simply that continual debt is not pleasing to the Lord.

purchasing, technological advances

The purpose of deregulation is to open up the doors of competition to many businesses in order to offer consumers greater choice in _____________________ services or products, to lower rates, and to encourage ________________________________ through competition.

the section of the U.S. Code which deals with the rules and procedures of Bankruptcy

Title 11

True

True or False In a bankruptcy, the priority debts- the debts that the court feels should be paid first- are paid, then the unsecured debts are added up.

False

True or False More than one-third of the checks written in the U.S. are processed by the 20 Federal Reserve Banks.

True

True or False The Airline Deregulation Act was put into effect in 1978.

True

True or False The Fed works to keep the balance of financial strength at a healthy level by keeping interest rates low in recessions and letting them rise in economic "boom" times.

True

True or False The U.S. Treasury keeps a checking account with the Federal Reserve.

True

True or False The U.S. bankruptcy code was created to give debtors a "fresh start".

True

True or False The histories of Great Britain and France are filled with terrible stories of debtors' prisons and penal colonies where people were sent because they could not pay their debts.

True

True or False When banks borrow money from a Federal Reserve Bank, they are given a certain interest rate to pay back the loan. If the Federal Reserve System raises the rate of interest, the banks will find it harder to make loans.

broken up into one long-distance company and seven "Baby Bells" to provide local service

AT&T

Board of Governors

A _____________________________________ and the Federal Open Market Committee oversee the operation of the Fed.

borrows from

A bank might be seeing a hard pull on its deposits, so it ____________________ the Reserve Bank.

raise prices

After trusts had eliminated the competition, they would cut back on production and _________________________________.

1914 legislation that dealt against monopolies, particularly in the area of price-fixing

Clayton Antitrust Act

incentive

Encouragement to strive for higher goals or profits is called _______________.

A Chapter 7 bankruptcy is known as a "straight liquidation." Financial responsibility in the home is found in the Bible passage of 1 Timothy 5:8. A Chapter 13 bankruptcy filing is called a reorganization.

Which statements are TRUE? A Chapter 7 bankruptcy is known as a "straight liquidation." In a Chapter 13 proceeding the debtor surrenders his nonexempt property for division among his creditors. Financial responsibility in the home is found in the Bible passage of 1 Timothy 5:8. A Chapter 13 bankruptcy filing is called a reorganization.

After passage of the 1996 deregulation law, the Baby Bells started merging with each other, and two of them attempted to re-merge into AT&T. A lone utility company, Detroit Edison and Consumers Power, faced new competitions as deregulation gave people a choice between utility companies. The company tried to battle the act by asking for funds to cover "stranded costs" and lost income once the process was underway, but the deregulation went through.

Which statements are TRUE? California was the first state to undertake the restructuring of the electric utility industry on a state-wide basis. Deregulation is about increasing rates and reducing supplies. After passage of the 1996 deregulation law, the Baby Bells started merging with each other, and two of them attempted to re-merge into AT&T. A lone utility company, Detroit Edison and Consumers Power, faced new competitions as deregulation gave people a choice between utility companies. The company tried to battle the act by asking for funds to cover "stranded costs" and lost income once the process was underway, but the deregulation went through. Those that are in support of something are called its opponents.

All of them

Which statements are TRUE? Monopolies are judged by how strong the competition is between the companies. In 1911 the Standard Oil Company was divided into more than 30 separate companies. The Fed issues the nation's coin and paper currency. Trusts are agreed-upon unofficial mergers formed to control prices and production in the marketplace.

One of the largest divestitures in American history occurred when the U.S. Government ruled that the AT&T Corporation was a monopoly that must be divided so that the telephone market might be more competitive. Week by week the finances in this country can change, so the selling and buying of securities helps maintain equilibrium.

Which statements are TRUE? One of the largest divestitures in American history occurred when the U.S. Government ruled that the AT&T Corporation was a monopoly that must be divided so that the telephone market might be more competitive. The Federal Reserve System oversees bankruptcy court proceedings. Week by week the finances in this country can change, so the selling and buying of securities helps maintain equilibrium.

open-market operations (purchase or sale of government securities) change the discount rate change reserve requirements

Which three ways does the Fed manage the country's money supply?

unofficial mergers formed to control prices and production in the marketplace

trust

a promise or obligation to pay to another a certain amount of money which has no collateral

unsecured debt