ECO Unit 1
expansionary fiscal policy
An example of ___ is increasing government spending.
Bank
President Andrew Jackson destroyed the ___________________ of the United States.
the gold standard
President Richard Nixon severed all connections between the dollar and ___.
A jar of coins
___ is an example of money.
Fiat
_____________________ money must be accepted as such by law.
Monetary
_________________________ policy is what controls money in circulation.
a natural monopoly
A company that can offer a product at a much lower price due to some advantage holds ___.
value
A function of money is to serve as a store of______________________.
e-cash
A relatively new form of money that is growing in popularity is ___________________________.
means
A(n) _________________________ of payment is a way in which to settle a debt.
credit union
A(n) ____________________________ serves a particular group only.
credit card
A(n) ____________________________ serves as a means of identification for purchases.
Treasury
Every commercial bank must be sanctioned by the U.S. Department of the _______________.
buy securities in the open market
If the Fed wanted to risk inflation by encouraging growth, it would ___.
$3.76 trillion
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?
reasonable prices and consumer choice
In a market or free enterprise economy, competition ensures ___.
Governors
Members of the Fed's Board of ______________________serve 14-year terms.
Federal Open Market Committee's
The Fed sets policy at the ___ meetings.
Fifth Amendment
The Takings Clause is a part of the ___.
Federal Reserve
The ___________________________ System was created during the Woodrow Wilson administration.
own their own businesses
The free enterprise system is based primarily upon Americans' right to ___.
make profit in the sale or operation of private property
The importance of the Constitutional right to private property lies mainly in the ability to ___.
It gave the government more power in practicing eminent domain.
What was the importance of the Supreme Court case Kelo v. New London (2005)?
freedom from all government involvement
Which is NOT a component of the free enterprise system?
Interest rates increase.
Which of the following would happen if the Fed were to sell securities?
the consumers
Who makes the fundamental economic decisions that drive a market (capitalist) economy?