What was an EFFECT of the 2008 financial crisis?

The gov't organized a $700 billion bailout

What is monetary policy?

Creating a healthy economy by controlling the money supply

The phrase "guns or butter" expresees the idea that

government decsions involve trade offs between military and domestic needs

The Fed Board of Governors are appointed by

The President of the United States

What is another function of the FED?

Supervising and regulating banks

In a free market, "consumer sovereignty" means

consumers ultimately decide what gets produced

Is the FED a branch of the US government?

No! It works closely with the gov't, but it is independent!

What are the three basics questions all economies seek to answer?

What is made? How is made? Who gets it?

How does the FED know if the economy is healthy?

They look at economic indicators

If economic indicators show an unhealthy economy, what can the FED do?

Increase or decrease interest rates

The difference between macro and micro economics is

Micro looks at small segmentsl while macro examines the whole economy!

Why should you care/know about the FED?

They control your ability to get money & loans!

What is another function of the FED?

Acting as a 'lender of last resort' giving bailouts

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Econ Review Norton 2021

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Review of monetary policy, the fed, the role of money.

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Questions 35

Answers

1
What was an EFFECT of the 2008 financial crisis?
The gov't took borrowed money from international banks
The gov't organized a $700 billion bailout
The gov't allowed the banks to go bankrupt
The gov't supported taking out more subprime loans
2
Which function of money is depicted in the image?
Medium of Exchange
Store of value
Unit of Account
3
How does the FED raising the interest rate impact society?
There is an increase in GDP
It makes getting a loan harder
Inflation increases
Unemployment rates will drop significantly
4
Which economist would say, "Let the market solve economic problems, the government needs to stay out
Keynes
Freidman
Galbraith
FDR
5
Because of scarcity, every decision involves a
trade off
Marignal cost
marginal benefit
cost/benefit analysis
6
What is NOT a function of money
a store of value
A means to barter
a unit of account
medium of exchange
7
What is monetary policy?
Creating a healthy economy by controlling the money supply
Creating rules for US citizens to follow when voting
Providing bailouts to banks and businesses when they mess up
Establishing rules to follow during presidential elections
8
What are the three factors of production
land, labor and capital
workers, management, entrepreneurs
human capital, physical capital, mental capital
Yneeds, wants and choices
9
Which of the following was a CAUSE of the 2008 financial crisis?
Guaranteed loans
Decline in inflation
Decline in GDP
Subprime loans
10
The phrase "guns or butter" expresees the idea that
government decsions involve opportunity costs
government decsions involve trade offs between military and domestic needs
factor resources are limited
individuals, business and governments face trade-offs
11
A member of the Board of Governors of the Federal Reserve serves for
life
10 years
14 years
two years
12
The Fed Board of Governors are appointed by
Fed Chair
State Governors
The President of the United States
Secretary of the Treasury
13
What is another function of the FED?
Selecting new members of Congress
Advising the President
Establishing rules for consumer protection
Supervising and regulating banks
14
What function of money is shown in the image?
store of value
Medium of exchange
unit of account
15
In a free market, "consumer sovereignty" means
consumers are left with few choices
consumers ultimately decide what gets produced
Consumers struggle with producers for control of the marketplace
Government intervenes to mitigate between consumers and producers
16
Is the FED a branch of the US government?
I have no idea...
No! It works closely with the gov't, but it is independent!
Like a tree branch?
Yes! The President controls the FED!
17
Where is the FED Board of Governors located?
San Francisco
The Moon
Chicago
Washington, D.C.
18
What are the three basics questions all economies seek to answer?
Where is it? When is it? When do I get it?
Where is it? How much does it cost to make? How much does it cost to buy?
When do I get it? When do you get it? When do they get it?
What is made? How is made? Who gets it?
19
How does the FED know if the economy is healthy?
They listen to the President
They look at economic indicators
They ask it how it's feeling
They poll the America public about their thoughts
20
Which of the following is an important function of the FED?
Establishing monetary policy
Exercising quality control over TV
Establishing rules for presidential elections
Monitoring foreign businesses
21
How long is an average $1 in circulation?
8 inches
10 inches
6 inches
4 inches
22
Congress chartered the Second Bank of the United States to eliminate the financial chaos of the early 19th century
False
True
23
An opportunity cost is one of the best alternatives one can make other than the decision they DO make
False
True
24
How does the Chairperson get their job?
Application & Interview
Rock, Paper, Scissors Tournament
Elected by US popular vote
Appointed by the President
25
Define the Federal Reserve.
The central bank of the US
A special division at the FBI
Branch of the US Government that handles money
Nickname for the 'Federales' an anti-immigration group
26
Which is charateristic of a centrally planned economy
consumer sovereignty
stagflation
government control
hyperinflation
27
Which is NOT a type of unemployment
functional
structural
Cyclical
frictional
28
According to the law of demand, as a price of a good or service increases,
consumers save more
consumers buy more
consumers buy less
consumers purchase other goods
29
If economic indicators show an unhealthy economy, what can the FED do?
Increase or decrease interest rates
Advise the President to print more money
Move to another country that is doing better
Make some chicken noodle soup
30
Which is a tool the Fed uses to manpulate the money supply
reserve ratios
contracting printer services
immigration
stimulus checks
31
The difference between macro and micro economics is
Micro looks at small segmentsl while macro examines the whole economy!
Macro looks at small segments, while micro examines the whole economy
Macro is food stuffs(macaroni for short), micro from("microscope)
32
Which of the following is NOT a function of a bank?
Give financial advice
Provide loans
Collect taxes
Keep valuables safe
33
Why should you care/know about the FED?
They control your ability to get money & loans!
They create new rules and regulations regarding driving
They pick who sings the National Anthem at the Superbowl
They decide who the next President will be.
34
Who is this Chairperson?
Jerome Powell
Matthew Thatcher
Cassius Mackerel
Bill Clinton
35
What is another function of the FED?
Analyzing the latest political polls projecting a winner
Monitoring viral videos on the Internet
Acting as a 'lender of last resort' giving bailouts
Establishing rules for swimming pool safety

Econ Review Norton 2021 Flashcards | StudBud