1 / 26

Unit 5 and 6

Unit 5 and 6. Financial Markets, Consumer/Personal Finance, Economic Indicators and Measurements. Fiscal Policies. Fiscal Policy - uses taxes and government spending to affect the economy. Expansionary - stimulate economy

michaelkjohnson
Download Presentation

Unit 5 and 6

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit 5 and 6 Financial Markets, Consumer/Personal Finance, Economic Indicators and Measurements

  2. Fiscal Policies • Fiscal Policy- uses taxes and government spending to affect the economy. • Expansionary- stimulate economy • Contractionary- plan to reduce aggregate demand and slow economy (addresses inflation: decreases the amount of money in circulation.) • Discretionary- stabilize the economy.

  3. https://www.youtube.com/watch?v=SYFYla1H7KE • Recessions and Fiscal Policy- EconMovies #5: Cars (5:45)

  4. Fiscal Policy and Stimulus: Crash Course Economics #8 • https://www.youtube.com/watch?v=otmgFQHbaDo • 11:53

  5. **Business Cycle • A business cycle is a series of growing and shrinking periods of economic activity, measured by increases or decreases in GDP.

  6. Stages of a Business Cycle • Expansionary: economic growth & low unemployment • Peak: GDP reaches its peak • Recession (Contraction): High levels of unemployment and high levels of inflation • Trough: GDP and employment stop declining

  7. Results in Economic Growth • Increased free trade agreements • Increased productivity • If businesses can decrease the amount of labor needed to increase inventories • Example: the introduction of new manufacturing technologies

  8. Savings & Investment • Spear & Fisherman- 8:44 • https://www.youtube.com/watch?v=Oi9cq7tXkmg

  9. Savings and Investment • 1ststep in creating a savings account: Set financial goals • Financial Institutions- Primary function is provide access to capital for people and businesses. • Banks, stock markets, insurance markets, and bond markets.

  10. Risks of Investments • Higher degree of risk investments include: stocks and corporate bonds. • One risk from investing in stock market is the loss of purchasing power. • Higher risk=Higher return

  11. Insured & Uninsured bank accounts • Insured bank accounts- checking, savings, and certificates of deposit (CDs) -(≥$250k) • Uninsured bank accounts- Investments in mutual funds, stocks, or bonds

  12. Retirement Accounts • Individual retirement account (IRA)- most secure retirement plan. • 401k- offered as a benefit of employment to which eligible employees may make salary reduction contributions toward retirement. • rises and falls with the stock market.

  13. https://www.youtube.com/watch?v=Dugn51K_6WA • Money and Finance: Crash Course Economics #11 (10:35)

  14. 401k Investopedia • https://www.investopedia.com/terms/1/401kplan.asp

  15. Business Cycle Activity • -Individually, colorfully illustrate the stages of the business cycle. Each stage of the business cycle should be drawn out (Expansion, Peak, Contraction (Recession), and Trough). • -Provide at least one sentence explaining what was drawn for each stage of the business cycle.

  16. Different Loans • Secured loans- are protected by an asset or collateral of some sort. • Unsecured loans – ex: credit card purchases or education loans.

  17. Credit • Open-ended credit- allows a borrower to repeatedly use it within a certain monetary amount (Like a credit card.) • Closed-ended-Ex: car loansand mortgages

  18. Credit Card Advice • The most effective way to manage credit card debt is by paying off the balance each month. • The following action would improve a credit score:paying off all debts.

  19. Mortgages & Home Ownership • In order to qualify for a mortgage a loan officer will consider an applicant’s net worth. • Assets – Liabilities = Net Worth • Benefits of home ownership includes building equity

  20. 2008 Financial Crisis • https://www.youtube.com/watch?v=GPOv72Awo68&list=PL8dPuuaLjXtPNZwz5_o_5uirJ8gQXnhEO&index=12 • 11:24

  21. Annual Cost of Owning a Home • Paying property taxes • Keeping up with repairs and maintenance • Making payments on principal, interest, and insurance.

  22. Benefit of Purchasing Insurance • Available when an unexpected need for repair or services arises.

  23. Bankruptcy • Bankruptcy has a negative impact on future credit options. • You lose all credit cards, can’t get a mortgage, and you still have to pay back some debts like student loans and alimony.

  24. OSHA • The Occupational Safety and Health Administration (OSHA) is an example of a government agency that regulates businesses.

  25. Investing in a Market Economy • One effect of an increase in the amount of savings in an economy is- an increase in financial resources for business investment.

  26. *Risk & Return • Risk-the possibility for loss on an investment • Return- is the profit or loss made on an investment • Diversification- distributing investments among different financial assets to maximize return and limit risk.

More Related