Unit 2
A function of money is to serve as a store of ______.
value
President Andrew Jackson destroyed the ______ of the United States.
Bank
The Fed sets policy at the ___ meetings.
Federal Open Market Committee's
The _____ System was created during the Woodrow Wilson administration.
Federal Reserve
_____ money must be accepted as such by law.
Fiat
The Takings Clause is a part of the ___.
Fifth Amendment
_____ policy is what controls money in circulation.
Monetary
Every commercial bank must be sanctioned by the U.S. Department of the ______.
Treasury
A company that can offer a product at a much lower price due to some advantage holds ___.
a natural monopoly
A relatively new form of money that is growing in popularity is _____.
e-cash
A(n) ______ serves as a means of identification for purchases.
credit card
A(n) _____ serves a particular group only.
credit union
The importance of the Constitutional right to private property lies mainly in the ability to ___.
make profit in the sale or operation of private property
A(n) ____ of payment is a way in which to settle a debt.
means
The free enterprise system is based primarily upon Americans' right to ___.
own their own businesses
In a market or free enterprise economy, competition ensures ___.
reasonable prices and consumer choice
Who makes the fundamental economic decisions that drive a market (capitalist) economy?
the consumers
President Richard Nixon severed all connections between the dollar and ___.
the gold standard
In October 2010, the amount of money held by individuals and companies was $756.7 billion; checkable deposits owed by individuals and companies were $502.2 billion; money market funds were $1.895 trillion; savings deposits were $277.7 billion; time deposits were $329.1 billion. What was the M2 amount in October 2010?
$3.76 trillion
Match the statements with the words. 1. This event exposed the need for and led to a more centralized banking system in the United States. 2. This organization enjoys the benefit of operating as a legal monopoly. 3. The government made its first move to regulate the economy. 4. This is another name for a new business. 5. This organization provided an obstacle to banking during the Middle Ages. 6. This goes into effect every October 1st. 7. These include credit unions and savings and loans associations.
1. the Revolutionary War 2. National Football League 3. Sherman Antitrust Act of 1890 4. startup 5. the Roman Catholic Church 6. the federal budget 7. thrift institutions
___ is an example of money.
A jar of coins
Members of the Fed's Board of ______ serve 14-year terms.
Governors
Which of the following would happen if the Fed were to sell securities?
Interest rates increase.
What was the importance of the Supreme Court case Kelo v. New London (2005)?
It gave the government more power in practicing eminent domain.
If the Fed wanted to risk inflation by encouraging growth, it would ___.
buy securities in the open market
An example of ___ is increasing government spending.
expansionary fiscal policy
Which is NOT a component of the free enterprise system?
freedom from all government involvement