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Mrs. Little's Final Flashcards | StudBud
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Mrs. Little's Final
Mrs. Little's Final
32 terms
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We got this, lets end strong! I love you 3000
Flashcards
32 cards
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Practice quiz
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Questions
32
Answers
1
What is money$$?
Anything generally accepted in exchange for goods & services
Dough
Debit and Credit cards
Green
2
Which is the Feds involved with?
Fiscal Policy
Monetary Policy
3
What if the formula for Aggregate Demand
(AD)= I+X+G (C-M)
(AD)= M+X+G (C-M)
(AD)= I+X+M (C-G)
(AD)= C+I+G (X-M)
4
Does the National Debt NEED to be paid off?
No, it can be refinanced and left for future generations.
Yes, we could all die!
5
How to determine if it is Debit?
Its debit because I say so!
Swiping someones neck rolls
Brings money to America
Gives money to another country
6
How to determine if it is Credit?
Giving money to another country
If the item is expensive
Bringing money to America
Pressing the credit button
7
What does the Current Account do?
Records of your moms bank account
The accounts of debit and credit
Record of a country’s imports and exports
It is the current account of the national banks
8
What is the second step when solving for MPC?
1/MPS= Multiplier
I.P x Multiplier = Multiplier Effect
1 - MPC= MPS
2 + 2= 4
9
what is the first step when solving MPC?
1/MPS= Multiplier
1 + 1= 2
1 - MPC= MPS
I.P x Multiplier= Multiplier Effect
10
What does the FDIC do?
Make goods on deposites
Helps with the monetary policy
Creates a new banking system
Is a secret Agent
11
What is the formula for Money Multiplier?
% x Deposite= R.R.
Deposite - R.R.= Excess Reserves
1/ Ratio = Money Multiplier
Deposit x Money Multiplier= Potential Money Created
12
What are the three major methods to control money supply that the Fed has?
Change its discount rates
Open Market operations
Change Receives Requirements
Fiscal Policy
13
How many Federal Reserves are located in the United States?
10
20
11
12
14
What does the Feds use the most?
Fiscal Policy
Closed Market Operations
Open Market Operations
Discount rates
15
What is the Implementation Lag?
I don't know :/
A bill going through the House & then presented to congress.
When a money transfer does not go through.
Deals with debit and credit.
16
What is Transaction Purposes?
A law being approved by the congress.
My mom giving me lunch money.
To facilitate exchange.
To exchange any tradable items for illegal materials.
17
What is the formula for Excess Reserves (R.R.)?
Deposit x Money Multiplier= Potential Money Created
% x Deposite = R.R.
1/ Ratio = Money Multiplier
Deposit - R.R.= Excess Reserves
18
Which is bigger?
M2
M1
19
What does this graph represent?
Inflationary Gap
Long Run Equilibrium
Recessionary Gap
20
What are the two main difficulties in controlling the money supply?
Banks and the President
People and banks
People and the Feds
Banks and the Congress
21
What is the Fiscal Policy?
When the congress agrees to deflation rates.
Gov. adjusts spending & tax rates to influence the economy.
When the president spends money and it affects the people.
The meaning when too much inflation occurs.
22
What is the common Liquidity?
Car Engines
Dollar Bills
Wheat
Resources
23
What is the formula for Required Reserves (R.R.)?
Deposit - R.R.= Excess Reserves
% x Deposite = R.R.
1/ Ratio = Money Multiplier
Deposit x Money Multiplier
24
What is the formula for GDP?
M x V= GDP
GDP x V= M
GDP x I= C
C x I = GDP
25
What does this graph represent?
Lung Run Equilibrium
Inflationary Gap
Recessionary Gap
26
What does this graph represent?
Long Run Equilibrium
Inflationary Gap
Recessionary Gap
27
What is the Third step when solving for MPC?
I. P. x Multiplier= Multiplier Effect
3 + 3= 6
1 - MPC= MPS
1/MPS= Multiplier
28
The Impact Lag?
After the bill goes through the Legislation.
Before the bill goes through the House.
29
How does the government fix the National Debt?
Create a budget
Increase tax rates
Go into inflation
They finance the debt by issuing more debt
30
What is the formula for Potential Money Created?
1/ Ratio = Money Multiplier
Deposit - R.R. = Excess Reserves
% x Deposite = R.R.
Deposit x Money Multiplier= Potential Money Created
31
What affects the Disposable Income?
Real Wealth
Consumer Confidence
Interest rates
Household Debt
32
What are the functions of money?
Store of Value, a Means of Deferred Payment.
Making sure it goes through the bank.
Dollar bills being made.
Medium of exchange & a Unit of Account.
