Qualities of Money  Stability of value  Portable and durable  Uniformity  Divisibility  Recognizability  Store of value  Measure of value

Other Terms  Money supply  Currency  Demand deposits  Near moneys  Fractional reserve banking  Reserve ratio  Federal Reserve System

What does the Federal Reserve do? See page  1.  2.  3.  4.  5.  6.

Key terms  Purchasing power of money  Demand pull inflation  Cost push inflation

Who benefits from inflation?

Who does not benefit from inflation?

Chapter 14  See page 242 and draw a picture of the cycle  Define these…  Recession  Recovery  Durable goods  Housing starts  Jobless claims

Key Indicators  CPI  GDP  Unemployment rate Frictional Seasonal Structural Cyclical

Fiscal & Monetary Policy  Explain…  What is the discount rate?  Reserve ratio?

Chapter 15- International Trade  Tariffs  Quotas  Export subsidies  Barriers to trade– What are the arguments in favor and against?  WTO  GATT  EU  NAFTA  Foreign exchange market

Chapter 16- Globalization  Globalization  Good or bad?  What is the relationship between economic development and population growth?

Income growth in less developed countries  Labor standards  The environment  Resources and incentives  Government regulation?