Embargo Vocabulary
SEC (Securities and Exchange Commission)
Agency dealing with the stock market
SPSC (Standard Products and Services Codes)
Agency making sure goods are safe
Reserve Requirement
Amounts banks are required to keep on deposit at Federal Reserve Bank
Federal Reserve System
Central banking system of the U.S.
Federal Open Market Committee
Committee of the Federal Reserve Board that meets regularly to set monetary policy
Credit Union
Nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates
Embargo
Official ban on trade or other commercial activity with a particular country
Regressive Tax
Tax that is the same for everyone
Demand Side Economics
Advocates use of government spending and growth in money supply to stimulate demand for goods and services and therefore expand economic activity
EPA (Environmental Protection Agency)
Agency of U.S. federal government whose mission is to protect human and environmental health
FOMC (Federal Open Market Committee)
Agency that deals with money supply
Defecit Spending
Excess government spending of funds borrowed instead of taxation
Default
Fail to pay
FDA (Food and Drug Administration)
Federal agency responsible for monitoring trading and safety standards in the food and drug industries
Bank
Financial institution licensed as receiver of deposits
Functions of Money
Medium of exchange, store of value, and unit of account
Discount Rate
Minimum interest rate set by Federal Reserve for lending to other banks
Fiscal Policy
Government adjusts spending levels and tax rates to monitor and influence nation's economy
Prime Rate
Lowest rate of interest at which money may be borrowed commercially
Monetary Policy
Macroeconomic policy laid down by the central bank
OSHA (Occupational Safety and Health Administration)
Protecting workplace, making sure work environment is safe
IRS (Internal Revenue Service)
Responsible for collection and enforcement of taxes
Balanced Budget
Revenues are equal to expenditures
Currency
System of money in general use in a particular country
Progressive Tax
Tax based on income
Estate Tax
Tax levied on the net value of estate of a decreased person before distribution to thei heirs
Excise Tax
Tax on tax for certain goods
Supply Side Economics
Theory that the supply of money, labor, and goods or services creates demand
Money Supply
Total amount of money in circulation or in existence in a country
National Debt
Total amount of money that a country's government has borrowed
Gold Standard
Value of a currency was defined in terms of gold, for which the currency could be exchanged