Economics 1144 Self Test
Each of the ... Federal Reserve Districts has its own Federal Reserve ... that performs specific functions for its district and is supervised by a nine-member board of directors
12, bank
... is the key to controlling impulse purchases
Discipline
chief policy-making body of the Fed
Federal Open Market Committee
primary controller of the financial affairs of the United States
Federal Reserve System
During the ..., fiscal policy became a permanent responsibility of the U.S. government
Great Depression
... payments are those the government makes for welfare programs, Social Security, Medicare, unemployment, and farm subsides
Transfer
makes an entire debt due immediately if one payment is late
acceleration clause
lists interest and principal payments for the life of a loan
amortization schedule
period of sharp increase in the birthrate
baby boom
stipulates that a large payment of all remaining principal is due at the end of a loan
balloon clause
A ... is a financial plan based on expected income and expenditures for a given period
budget
A secured loan is one in which repayment is guaranteed by ...
collateral
Government debt differs from individual debt because most government debt is internal debt, government debt is ..., and the government can pay its debts by ...
continuous, creating money
A government runs a ... when its spending exceeds its revenue
deficit
rate of interest the Fed charges for loans to member banks
discount rate
government spending that may be adjusted based on need
discretionary spending
tax levied on various products and services
excise tax
A decrease in taxes or an increase in government spending is a ... fiscal policy
expansionary
process by which income and jobs are created for more people
expenditure multiplier
total of all accumulated federal government deficits minus all its accumulated surpluses
federal debt
The federal government controls ... policy
fiscal
policy that influences the economy though changes in government spending or taxation
fiscal policy
occurs when a lender takes money from a debtor's wages
garnishment
By purchasing and selling ... on the open market, the Fed controls the money supply
government securities
Both the Keynesian and modern classical supply-side policies resulted in a ... in the federal deficit
increase
The ... is the amount a lender charges for a loan, and the ... is the original amount of the loan
interest, principal
government spending that is mandated by law
mandatory spending
portion of each dollar that an individual spends
marginal propensity to consume
The most important function performed by the Fed is conducting ...
monetary policy
policy that influences the economy through changes in the money supply and credit availability
monetary policy
The Federal Reserve System is a semiautonomous, ... owned organization that is supervised by a Board of ... who are appointed by the President
privately, Governors
tax assesses at a higher rate as income increases
progressive tax
tax assessed at the same rate, regardless of income
proportional tax
tax that takes a smaller percentage of higher incomes
regressive tax
occurs when a lender takes physical custody of collateral
repossession
percentage of its deposits a bank must hold
reserve requirement
Two suggested methods from preventing the collapse of the Social Security system are increasing the ... and making the system partially funded
retirement age
A credit card is an example of ..., and a car loan is an example of ... credit
revolving credit, installment
... interest is calculated on only the principle; ... interest is calculated on the original principal and the reinvested interest
simple, compound
The federal budget is a plan for government borrowing, for paying for government activities, and for ... federal revenues and is historical record of government spending
spending
The functions of the Fed include ...
supervising and regulating financial institutions, providing financial services to financial institutions, issuing coins and currency, providing banking services to the federal government
During the 1980s, a modern classical ... economic policy replaced a Keynesian economic policy
supply-side
The primary source of revenue for any government is ... imposed on individuals and businesses
taxes
A savings passbook is an example of a ..., and a money-market account is an example of ...
time deposit, floating-rate accounts
A ... pension plan is one in which pension are paid with receipts from current workers
unfunded
period when the number of births and deaths is equal
zero population growth
program that provides medical care to the poor, the disabled, and the elderly in nursing homes
Medicaid
The principal Social Security programs are ... and the Old Ages, Survivors, and Disability Insurance
Medicare
program that provides medical care to the elderly and disabled people
Medicare
largest single government program in the world
Social Security system
