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

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

4. What does the Federal Reserve do? See page 232-233  1.  2.  3.  4.  5.  6.

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

6. Who benefits from inflation?

7. Who does not benefit from inflation?

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

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

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

11. 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

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

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