1. EOC Review Civics and Economics
Money, Banking and International Trade
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2. Civics and Economics EOC
What are the functions of money?
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3. Civics and Economics EOC
Medium of exchange
Store of value
Measure of value
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4. Civics and Economics EOC
What are coins?
What is currency?
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5. Civics and Economics EOC
Currency- includes coins and paper money.
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6. Civics and Economics EOC
What are commercial banks?
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7. Civics and Economics EOC
Commercial banks are financial institutions that offer full banking services.
Examples?
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8. Civics and Economics EOC
What is the FDIC?
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9. Civics and Economics EOC
FDIC- Federal Deposit Insurance Corporation- insures individual account up to $100,000.
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10. Civics and Economics EOC
What is the Fed?
How many district banks does it include?
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11. Civics and Economics EOC
The Fed is the central bank of the United States.
Divided into 12 district banks.
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12. Civics and Economics EOC
What group oversees the direction of the Fed?
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13. Civics and Economics EOC
A Board of Governors oversees the Fed.
They are appointed by the Pres. and approved by the Senate.
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14. Civics and Economics EOC
What is monetary policy?
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15. Civics and Economics EOC
Monetary policy- controlling the supply of money and the cost of borrowing money.
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16. Civics and Economics EOC
If the Fed wants to lower the interest rates….
If the Fed wants to raise the interest rates…
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17. Civics and Economics EOC
Expanding the $ supply = a lower interest rate.
Contracting the $ supply = a higher interest rate.
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18. Civics and Economics EOC
What are the types of deposit accounts?
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19. Civics and Economics EOC
Checking account
Savings account
Certificates of Deposit (CDs)
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20. Civics and Economics EOC
What act of Congress established the FDIC?
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21. Civics and Economics EOC
Glass-Steagall Banking Act
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22. Civics and Economics EOC
What is the Gramm-Leach-Bliley Act?
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23. Civics and Economics EOC
1999; permits bank holding companies to engage in a full range of banking activities.
Could create “universal banks”
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24. Civics and Economics EOC
What are imports?
What are exports?
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25. Civics and Economics EOC
Imports- goods purchased from other countries
Exports- goods sold to other countries
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26. Civics and Economics EOC
What is comparative advantage?
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27. Civics and Economics EOC
Comparative advantage:
Ability of a country to produce a good at a lower cost than another country can.
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28. Civics and Economics EOC
Why do nations trade?
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29. Civics and Economics EOC
To obtain goods they cannot produce
Comparative Advantage
To create jobs
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30. Civics and Economics EOC
What are tariffs?
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31. Civics and Economics EOC
Tariff- custom tax, tax on imported good.
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32. Civics and Economics EOC
What is a quota?
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33. Civics and Economics EOC
Quota- limits on the amount of foreign goods imported
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34. Civics and Economics EOC
What does free trade mean?
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35. Civics and Economics EOC
Free trade- no limits or laws that block trades.
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36. Civics and Economics EOC
What is the European Union?
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37. Civics and Economics EOC
The European Union (EU) is a regional trade agreement in Europe.
Share currency, free trade agreements, etc.
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38. Civics and Economics EOC
What is NAFTA?
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39. Civics and Economics EOC
North American Free Trade Agreement (US, Canada, Mexico)
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40. Civics and Economics EOC
What is the WTO?
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41. Civics and Economics EOC
WTO- World Trade Organization.
International body regulating trade among nations.
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42. Civics and Economics EOC
What is a trade deficit?
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43. Civics and Economics EOC
Trade deficit-
When the value of the products it imports exceeds the value of the products it imports.
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44. Civics and Economics EOC
What is a trade surplus?
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45. Civics and Economics EOC
Trade surplus-
When the value of its exports exceeds the value of its imports.
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46. Civics and Economics EOC
What is the United Nations (UN)?
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47. Civics and Economics EOC
The United Nation’s goal is keeping peace among the countries of the world.
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48. Civics and Economics EOC
What are the 3 types of taxes?
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49. Civics and Economics EOC
Proportional Taxes:
percentage paid in tax remains constant as income of the taxpayer changes.
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50. Civics and Economics EOC
2. Progressive Tax:
Tax rate increases as your income increases (income tax)
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51. Civics and Economics EOC
3. Regressive tax:
Percentage you pay in tax goes down the higher your income grows. (sales tax)
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52. Civics and Economics EOC
What is an excise tax?
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53. Civics and Economics EOC
Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product
Ex) gasoline, cigarettes, alcohol
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54. Civics and Economics EOC
What is the Estate Tax?
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55. Civics and Economics EOC
Estate Tax:
imposed on the transfer of the "taxable estate" of a deceased person
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56. Civics and Economics EOC
What are some examples of Payroll taxes?
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57. Civics and Economics EOC
Medicare, Social Security, etc.
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