470 likes | 575 Views
EOC Review Civics and Economics. Money, Banking and International Trade. What are the functions of money?. Medium of exchange Store of value Measure of value. What are coins? What is currency?. Currency- includes coins and paper money. What are commercial banks?.
E N D
EOC ReviewCivics and Economics Money, Banking and International Trade Civics and Economics EOC Review
What are the functions of money? Civics and Economics EOC Review
Medium of exchange • Store of value • Measure of value Civics and Economics EOC Review
What are coins? • What is currency? Civics and Economics EOC Review
Currency- includes coins and paper money. Civics and Economics EOC Review
What are commercial banks? Civics and Economics EOC Review
Commercial banks are financial institutions that offer full banking services. • Examples? Civics and Economics EOC Review
What is the FDIC? Civics and Economics EOC Review
FDIC- Federal Deposit Insurance Corporation- insures individual account up to $250,000. Civics and Economics EOC Review
What is the Fed? • How many district banks does it include? Civics and Economics EOC Review
The Fed is the central bank of the United States. • Divided into 12 district banks. Civics and Economics EOC Review
What group oversees the direction of the Fed? Civics and Economics EOC Review
A Board of Governors oversees the Fed. • They are appointed by the Pres. and approved by the Senate. Civics and Economics EOC Review
What is monetary policy? Civics and Economics EOC Review
Monetary policy- controlling the supply of money and the cost of borrowing money. Civics and Economics EOC Review
If the Fed wants to lower the interest rates…. • If the Fed wants to raise the interest rates… Civics and Economics EOC Review
Expanding the $ supply = a lower interest rate. • Contracting the $ supply = a higher interest rate. Civics and Economics EOC Review
What are the types of deposit accounts? Civics and Economics EOC Review
Checking account • Savings account • Certificates of Deposit (CDs) Civics and Economics EOC Review
What act of Congress established the FDIC? Civics and Economics EOC Review
Glass-Steagall Banking Act Civics and Economics EOC Review
What is the Gramm-Leach-Bliley Act? Civics and Economics EOC Review
1999; permits bank holding companies to engage in a full range of banking activities. • Could create “universal banks” Civics and Economics EOC Review
What are imports? • What are exports? Civics and Economics EOC Review
Imports- goods purchased from other countries • Exports- goods sold to other countries Civics and Economics EOC Review
What is comparative advantage? Civics and Economics EOC Review
Comparative advantage: • Ability of a country to produce a good at a lower cost than another country can. Civics and Economics EOC Review
Why do nations trade? Civics and Economics EOC Review
To obtain goods they cannot produce • Comparative Advantage • To create jobs Civics and Economics EOC Review
What are tariffs? Civics and Economics EOC Review
Tariff- custom tax, tax on imported good. Civics and Economics EOC Review
What is a quota? Civics and Economics EOC Review
Quota- limits on the amount of foreign goods imported Civics and Economics EOC Review
What does free trade mean? Civics and Economics EOC Review
Free trade- no limits or laws that block trades. Civics and Economics EOC Review
What is the European Union? Civics and Economics EOC Review
The European Union (EU) is a regional trade agreement in Europe. • Share currency, free trade agreements, etc. Civics and Economics EOC Review
What is NAFTA? Civics and Economics EOC Review
North American Free Trade Agreement (US, Canada, Mexico) Civics and Economics EOC Review
What is the WTO? Civics and Economics EOC Review
WTO- World Trade Organization. • International body regulating trade among nations. Civics and Economics EOC Review
What is a trade deficit? Civics and Economics EOC Review
Trade deficit- • When the value of the products it imports exceeds the value of the products it imports. Civics and Economics EOC Review
What is a trade surplus? Civics and Economics EOC Review
Trade surplus- • When the value of its exports exceeds the value of its imports. Civics and Economics EOC Review
What is the United Nations (UN)? Civics and Economics EOC Review
The United Nation’s goal is keeping peace among the countries of the world. Civics and Economics EOC Review