Money, Banking, and Economic performance
What are the 3 economic questions countries use when making a plan
What goods/services will be produced? How will goods/services be produced? Who will consume the goods/services?
What is a want?
What people would like to have but is not necessary
The US has ____ regional banks that hold the money in the reserves from the commercial banks
12
When was gold first adopted?
1819
When was gold first adopted by the USA?
1900
When did president Nixon announce you could not trade gold for currency
1971
When did the US government take US currency off the gold standard?
1978
When did the Egyptians use metal rings as money?
2500 BCE
The president appoints the chairmen of the fed every ___ year(s)
4
When was paper money in china used?
618-907 BCE
When did the Lydians make coins?
700 BCE
What is an example of a commodity?
A cow is a commodity because it can give milk but can also be used for food and leather
commercial bank
A for-profit bank that deals with money from large businesses
When is inflation bad?
When it is quick and increases faster then wages do
When is inflation good?
When it is slow and gradual
What is an example of a service?
A haircut
What is a service?
A human activity
bank
A place where people store their money
What is the gold standard currency backed by for it to have value?
A scarce and valuable resource
uniform
All forms are the same size
What is an example of a good?
An apple
Inflation
An increase in prices over time
What is an example of a want?
An xbox
The federal reserve regulates __________ and helps control the supply of money in the US
Banks
What is an example of fiat money
Bitcoin, SACS dollars, paper bills
universally accepted
Can be used anywhere
The ______________ of the fed is the leading position
Chairman
Where was the first known paper money used?
China
What is an example of a need
Clean water
Portable
Easily moved
What was the paper money in China stamped with?
Emporers and gods
What are the 2 main categories of wants and needs?
Goods and services
What makes the gold standard stable?
Having one type of metal to back up the money
Where was gold first adopted?
In England
What did the US currency become after the gold standard?
It became a fiat currency
What is a benefit of paper currency?
It is portable and lightweight.
What did the gold standard lead to?
It led to money that was too scarce
Who is the current chairman of the fed?
Jerome Powell
Bartering
When you trade goods and services without the use of money
Stable in value
Worth the same today as it was yesterday
livestock
farm animals
What happens when unemployment is high
No job — no money — can't buy goods — demand drops — prices fall
commodity
Objects that are useful on their own
fiat money
Only accepted as money because the government issues it or people are willing to accept it
What is deflation?
Opposite of inflation
The chairman of the fed is appointed by the ______________
President
Which President announced that you could not trade gold for currency?
President Nixon
What is a good
Products that people consume and/or use
What is an example of scarcity?
Shells, they are portable and fragile Coins, portable, uniform size, scarce metal
What is a need?
Something that is essential for survival
What was the act that made gold adopted?
The Gold Standard Act
Who was the first western civilization to make coins?
The Lydians
What is an example of paper currency?
The US dollar bills
The "fed"
The federal reserve
divisable
it can be divided into smaller pieces
scarce
it is rare and valuable enough to create a permanent money
necessary
needed
Scarcity
the limited supply of something
regulate
to control or manage
What is inflaiton
when prices for the same goods and services increase over time, more $ is needed to buy them