Transcript Ch 15-16 JEOPARDY Blended Assign 33

Chapter 15 and 16
Economics 12
First part of
Jeopardy deals w/
Chapter 15
British economist in the 1930s
developed new ideas to Economics.
He believed boosting or increasing
demand when the economy is down
is the government’s role.
John Maynard Keynes
A school of thought that uses
demand-side theory as the basis for
encouraging government action to
help the economy:
A) Supply-side Economics
B) Reaganomics
C) Keynesian Economics
D) A and B
C) Keynesian
Economics
A situation in which budget
expenditures exceed
revenues:
Budget Deficit
The total amount of money the
federal government owes to
bondholders:
National Debt
A school of thought based on the
idea that the supply of goods
drives the economy--Known as “Reaganomics”:
Supply-Side Economics
A school of thought based on the
idea that free markets regulate
themselves:
A) Demand-side Economics
B) Supply-side Economics
C) Classical Economics
D) Keynesian Economics
C) Classical Economics
The loss of funds for private
investment caused by
government borrowing:
Crowding-out
Effect
A situation in which budget
revenues exceed
expenditures:
Budget Surplus
A government bond with a term
of from 2 to 10 years:
Treasury Note
A government bond that is issued
with a term of 30 years:
Treasury Bond
In 1981 he rejected Keynesian
Economics and believed in the
‘opposite’ believing the supply-side
economics could drive an economy
out of a recession:
President Ronald Reagan
A school of thought based on the
idea that demand for goods drives
the economy:
A) Demand-side Economics
B) Supply-side Economics
C) Classical Economics
D) Keynesian Economics
A) Demand-side Economics
A bill authorizes a specific amount
of spending by the government:
Appropriations Bill
Any 12 month period used for
budgetary purposes:
Fiscal Year
A written document estimating
the federal government’s revenue
and authorizing its spending for
the coming year:
Federal Budget
A government bond with a maturity
date of 26 weeks or less:
Treasury Bill
The use of government spending
and revenue collection to
influence the economy:
Fiscal Policy
The idea that every dollar change
in fiscal policy creates a change
greater than one dollar in the
national income:
Multiplier Effect
The maximum output that an
economy can sustain over a
period of time without increasing
inflation:
Productive Capacity
A tool or fiscal policy that
increases or decreases
automatically depending on
changes in GDP and personal
income:
Automatic Stabilizer
Second part of
Jeopardy Deals w/
Chapter 16
What is the central bank of
the United States which
was created in 1913:
Federal Reserve System
Name the district number…(switching
back and forth)
1) Boston
2) New York
3) Philadelphia
4) Cleveland
5) Richmond
6) Atlanta
7) Chicago
8) St. Louis
9) Minneapolis
10) Kansas City
11) Dallas
12) San Francisco
If the Treasury Department
is the government’s banker,
then WHO is the
government’s bank:
The FED or
The Federal Reserve System
What is the method of
crediting and debiting
banks’ reserve accounts:
Check Clearing
When money expands in
the money supply, it
increases aggregate
demand and promotes
economic growth which is
called:
Easy-Money Policy
This is usually adopted
during a recession to move
an economy towards
recovery:
Easy-Money Policy
This is an interest rate the
Federal Reserve System
charges its member banks
for the use of its reserves:
Discount Rate
This is a decision making group
for the FED that is made up of 12
members---What is this group
called:
A) Board of Governors
B) National Monetary Commission
C) Federal Open Market Committee
D) The Head of the Fed
C) Federal Open Market Committee
The highest policy making body
in the FED is known as:
A) Board of Governors
B) National Monetary Commission
C) Federal Open Market Committee
D) The Head of the Fed
A) Board of Governors
This is characterized by higher
interest rates and a contraction in
the money supply:
A) Easy-Money Policy
B) Tight-Money Policy
C) Reserve Requirement
D) Moral Suasion
B) Tight-Money Policy
Money that must be held by
banks in their own vaults or
in its accounts at the district
Federal Reserve bank:
A) Discount Rate Requirement
B) Prime Rate Requirement
C) Reserve Requirement
D) Moral Suasion
C) Reserve Requirement
True or False
The interest rate banks
charge loans to their most
loyal and reliable business
customers is called the
Prime Rate:
True
True or False
The plan to alter the
money supply in order to
influence the cost and
availability of credit is
called Easy-Money Policy:
False
The plan to alter the money supply
in order to influence the cost and
availability of credit is called
Monetary Policy
When larger commercial banks
receive more deposits and have
more funds to loan, this
traditionally happens during
periods of:
A) Stability
B) Recession
C) Trough
D) Prosperity
D) Prosperity
True or False
Commercial banks such as
the St. Clair state Bank is
allowed to borrow money
from the Federal Reserve
System:
True
True or False
The Federal Reserve System is not in
the business of extending loans out
to corporations or to individuals:
False
The Federal Reserve System may
give loans to both a corporations
and to individuals
True or False
The amount of money in
circulation in the United
States economy is called
the money supply.
True
Now name the city in the district on
the next slide…………(switching back
and forth)
1) Boston
2) New York
3) Philadelphia
4) Cleveland
5) Richmond
6) Atlanta
7) Chicago
8) St. Louis
9) Minneapolis
10) Kansas City
11) Dallas
12) San Francisco
True or False
The Treasury Department collects
taxes through the Internal
Revenue Service and the U.S.
Custom Services:
True
In 1913 when the FED was
created, it broke up the system into
two levels which are called:
A) State and Regional
B) National and District
C) Regional and District
D) None of the Above
B) National and District
True or False:
Membership in the Federal
Reserve System is optional
for state-chartered banks:
True
The person/group
responsible for running the
FED today is:
A) The Head of the FED
B) The President of the United States
C) The Secretary of the Treasury
D) The Board of Governors
A) The Head of the FED
Last
Question:
Who is this
guy:
Benjamin Bernake
Last
Question:
Who is this
guy:
Alan Greenspan