Economics Unit 6 Review

The Fed’s Federal Open Market Committee (FOMC)

All investors must realize that there is no guarantee and that all investments involve 

Before societies used money, they traded goods and services in a 

The Federal Reserve is made up of

This type of investment is offered through an employer & is tax deferred and can be taken with you when you switch jobs

During the Civil War, the federal gov’t first issued a paper currency called 

Liabilities are

During the colonial period, people used coins of gold and silver called

Assets are

Under the fractional reserve system, banks are required to hold a percentage of every deposit as

A ____________ market is when stocks have increased in value for several months or years in a row.

The 3 functions of money are:

This is the movement of $ between savers, borrowers, and investors, & this flow makes savings & investing possible

When stock prices have fallen in value for several months in a row it is a _________market.

The 4 characteristics that money should possess are:

Which of the following is primarily responsible for the control of the money supply

A tax-advantaged, retirement savings account that allows you to withdraw your savings tax-free

Why would the U.S. government purchase government securities?

One of the most important responsibilities of the Fed and ultimately controls the money supply is known as

Depository institutions, life insurance companies, and pension funds are examples of 

When the Federal Reserve wants to increase the money supply it can 

The Fed functions as the central bank of the U.S. It is not owned by the Federal Gov’t, but it is owned by its 

Two popular indicators of general stock market performance are the Dow Jones Industrial Average (DJIA) and the

In the short run, an increase in the money supply results in 

This company pools its investor’s money and uses it to purchase many different types of securities in a portfolio