Economics Unit 7
What is federal reserve banking?
A banks practice of loaning out The majority of money that it Has on deposit.
What is fiat currency?
A fiat is it a decree of declaration by a government.
How do economists is define inflation?
A general,across-the-board increase in price throughout the economy, to the point that it affects almost all people.
What is the simplest form of investing?
A loan.
What is a purchaser of stock purchasing?
A small part of the ownership of the company that issues The stock.
How does money serve as a store of value?
Money is a way to store up value so that you can make purchases in the future.
What is a money market fund?
Money market funds are mutual funds make investments and safe and low-yield investments such as savings bonds or certificates of deposit that have a relatively short time unit maturity.
What are mutual funds and how do they work?
Mutual funds are investment companies that offer shares to the public. Many individuals invest in a mutual fund, and the fund pools The money so that all investors in the fund share mutually in its growth or decline.
What is the bond term that encompasses stocks, bonds ,and other financial investments?
Securities
What entity oversees the federal reserve system?
Seven-member board of governors whose offices are in Washington DC.
What does the federal reserve officially issue?
The coins and currency that the United States Treasury Department Products.
What is the federal funds rate, Who set a target federal funds rate, and how often do they meet?
The federal funds rate is the interest that banks charge each other for overnight loans. The Federal open market committee meets about every six weeks and set a target federal funds rate.
When is a currency based on the Gold standard?
When paper money that a government issues represents gold.
When does a waste-price spiral occur?
When producers and consumers both try to protect themselves from the effects of expected inflation.
What are credit and interest?
Credit is the ability to carry debt. Interest is the price of borrowing money.
Where are capital gains taxes?
Are taxes on the grain or increases in value of capital assets such as stocks and property.
What is a bond,what entities usually issues bonds, and what is the issuer of the bond obliged to do?
Bonds are certificates of indebtedness. The issuer of the Bond usually A businessman or a unit of government. The issuer of the bond is obligated to pay back the face value plus the interest stated in the bond.
What type of funds takes risks by buying and selling securities in anticipation of what fund managers think the securities are going to be worth the future and are usually available only till Wealthy or highly trade investors .
Hedge fund