8B 2.8 Post Test Review

Federal Communications Commission (FCC)

An independent federal agency that regulates interstate and international communication by radio, television, telephone, telegraph, cable, and satellite.

European Union

An international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members, uses a common currency called the euro

Increasing the Federal Funds Rate

Contracts and slows economic growth

Increasing the required reserve ratio is

a contractionary policy because it lowers the amount of excess reserves in the banking system

Food and Drug Administration (FDA)

a federal agency responsible for regulating food and drug products sold to the public

Environmental Protection Agency (EPA)

a governmental agency with environmental protection regulatory and enforcement authority

contractionary monetary policy tools

raising interest rates on borrowing, raising the reserve requirement

per capita GDP

the GDP divided by the total population at midyear

infrastructure

the basic physical and organizational structures and facilities (e.g., buildings, roads, and power supplies) needed for the operation of a society or enterprise.

open market operations

the buying and selling of government securities to alter the supply of money

Protectionism

the theory or practice of shielding a country's domestic industries from foreign competition by taxing imports.

mixed economy

An economy in which private enterprise exists in combination with a considerable amount of government regulation and promotion.

Board of Governors of the Federal Reserve System

A board with seven governors (including the chair) that plays an essential role in decision making within the Federal Reserve System, controls monetary policy

Social Security Act

(FDR) 1935, guaranteed retirement payments for enrolled workers beginning at age 65; set up federal-state system of unemployment insurance and care for dependent mothers and children, the handicapped, and public health

Interstate Commerce Act

1887 *Established the Interstate Commerce Commission in part to monitor discrimination within railroad industry *Prohibited rebates and pools and required railroads to publish their rates *Also prohibited unfair discrimination against shippers and outlawed the practice of charging more for short hauls than long hauls *In general, the Act opened competition, the goal of which was to preserve equality and spur innovation

Fair Credit Reporting Act

A federal law that established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used.

price ceiling

A legal maximum on the price at which a good can be sold

Tight Money Policy (Contractionary)

Monetary policy that decreases the money supply (occurs when the Fed wants to decrease aggregate demand/slowdown the economy due to inflationary fears)

Buying government securities

The money supply increases; economic activity increases.

medium of exchange

an item that buyers give to sellers when they want to purchase goods and services

expansionary monetary policy tools

buying government bonds, lowering interest rates on borrowing, lowering the reserve requirement

reducing the discount rate

causes banks to lend out more money, which leads to an increase in the money supply

trade agreement

intergovernmental agreement designed to manage and promote trade activities for specific regions