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| 1st and 2nd National Bank |
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| The 1st 2 central banks of the U.S.;; Kind of like the 1st 2 Feds; help to fund the governements debt in the first 150 years |
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| Exchanging a good or service for another good or service; Trading; |
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| Longterm place to place money that earnes higher interested than savings, but high penalties for early withdraw; loan you give to your bank; Safe guanteed investment in a bank |
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| Good money is durable, portable, acceptable, divisible, uniform, and limited in supply (by the government); our dollar possesses all these; it is FIAT money. |
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| Account that people use to pay bills, usually cost customer interest; Write your payment for a good or service; Bank I O U |
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| Large financial institutions, lend money, for profit institutions; Suntrust, Bank or America; Allows competition to help with loans |
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| When interest gets applied to the principle and the former interest; Credit card companies apply it to your balance; Can go into debt quickly |
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| period of economic decline typically marked by lower GDP, a time when the FED may use loose monetary policy to get the economy going again. |
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| Interest,; 7% interest on a mortgage; important to know the real cost of items you buy with money from a loan |
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| consumer price index is a measure of the inflation rate based on the price of a "market basket" of typical household goods and services; compared over time. |
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| cooperative financial institutions, lend money, non-profit; State employees; Allows workers to get together and help with banking |
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| when the government removes some control of the economy; Gramm-Leach-Bliley Act that allows banks more freedom to offer services. |
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| statistics used largely to predict where the country is heading on the business cycle; exs=GDP, consumer confidence, durable goods orders, unemployment rate |
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| a gauge of how healthy the economy is; based on indicators such GDP, unemployment, stock market, and durable goods orders; helps businesses and gov't make decisions that will help the econ grow |
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| Insures banks deposits up to $250K; Governent deposit insurance; insurance on your savings |
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| The central bank of the U.S.,; Headed by Benjamin Bernanke; controls the nations money supply monetary (MONEY-TARY) policy |
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| gross domestic product, the value of all FINAL goods and services produced in the country in a period of time; used to measure the health of the economy |
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| GDP divided by the population; takes population growth out of the picture in order to get an accurate picture of the growth of our economy |
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| Law that set up the Federal Deposit Insurance Corporation; (FDIC); makes consumers feel safe to keep money in banks which keeps that dollar bouncing around from cartoon |
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| government (at all levels) spending; mandatory=have to spend, discretionary=up to Congress to decide; exs of fed expenditures=defense, HHS, Homeland Security |
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| Bonds, notes, and other debt instruments sold by the Fed; The Fed sells & uses as a money-tary tool; used to finance US gov't borrowings. |
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| largest drop in the business cycle in US history; 1930's, major unemployment, stock market crash, big increase in gov't role in the economy. |
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| a rise in the price of goods and services; typically about 3% per year; eats at the value of our money; determined by the CPI; fight it with tight money policy |
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| Makes it so people can use money as a form to exchange for goods and service; Functions of money; You have an i-pod that I want, I give you $50 bucks, and you give me the i-pod |
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| Banks that belong to the Federal Reserve system; most commericial banks; government backed banks |
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| actions carried out by the Federal Reserve in order to regulate the money supply, "money-tary policy", remember 3 tools the FED uses to tighten or loosen the money supply |
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| currency in paper or coin form, anything which can be exchanged for goods and services; dollars bills & credit cards; Can MESSURE EXCHANGE & STORE VALUE |
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| Securities that are bunched together and sold; Dow Jones Mutual Fund; minimizes the risk to the invester because of the diversity of stocks |
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| highest point in the business cycle, typically characterized by higher employment, higher consumer confidence, and stronger business growth. |
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| Company directed retirement plan for its workers, worker retirement safety net |
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| phases of the business cycle |
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| periods of economic expansion followed by contraction; peaks, contraction, trough, expansion; gov't may employ monetary and/or fiscal policies to smooth out the extermes |
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| GDP expressed in constant prices; takes inflation out of the picture in order to get a more accurate picture of the growth of our economy |
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| ordinarily defined as a prolonged decrease in economic growth as defined by negative growth in GDP, increased unemployment, and slow business growth over at least 6 months. |
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| Account that people use to keep money for later use, usually gives customer interest; rainy day fund |
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| a grade of level of comfort of an individual or an entire economy: US=high standard of living (in material value), Haiti=low standard of living |
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| lowest point in the business cycle, typically charaterized by increased unemployment, lower consumer confidence, and slower business growth. |
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| How people use money; Measurement, exchange, savings/storage; Get paid on Friday and you can't spend you money till Wednesday at the store |
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