Econ Final

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Econ Final
2013-05-06 01:43:58
Econ Final ISU

Econ 2201 final cards
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  1. number of employed + number of unemployed
    Labor Force
  2. (number employed/labor force)*100
    Unemployment rate
  3. (labor force/Adult population)*100
    labor force participation rate
  4. This ismade up of financial institutions that coordinate the actions of savers and
    borrowers (more accurately users).
    financial system
  5. What are the two categories of the Financial system?
    financial markets and financial intermediaries
  6. Which category of the financial system is the stock market and the bond market in?
    Financial market
  7. Which category of the financial system is banks and mutual funds in?
    financial  intermediaries
  8. which market are the institutions through which savers can directly provide funds to borrowers?
    financial market
  9. Which market are financial institutions through which savers can indirectly provide funds to borrowers.
    financial intermediaries
  10. a certificate of indebtedness
  11. The length of time until the bond matures
  12. The probability that the borrower will fail to pay some of the interest or principal
    credit risk
  13. The way in which the tax laws treat the interest on the bond
    Tax treatment
  14. represents a claim to partial ownership in a firm
  15. The sale of stock to raise money
    Equity financing
  16. take deposits from people who want to save and use the deposits to make loans to people who want to borrow.
  17. an institution that sells shares to the public and uses the proceeds to buy a
    Mutual Funds
  18. a economy that doesn't engage in international trade
    closed Economy
  19. GDP – Consumption – Government purchases equals
  20. the total income in the economy after paying for consumption and government purchases
    National Saving
  21. the amount of income that households have left after paying their taxes and paying for their consumption
    Private saving
  22. the amount of tax revenue that the government has left after paying for its
    public saving
  23. The government has this when they receive more money then the spend
    Budget surplus
  24. The government has this when they spend more money then they receive
    Budget deficit
  25. the market in which those who want to save supply funds and those who want to borrow to invest demand funds.
    market for loanable funds
  26. What are the government policies that affect saving and spending
    • Taxes on saving
    • Taxes on investment
    • Government budget deficits
  27. What is the unemployment that does not go away on its own even in the long run or in other words the amount of unemployment that the economy normally experiences?
    the quantity demanded for loanable funds increase
  28. What are the two categories of unemployment?
    • Natural rate of Unemployment and cyclical
    • rate of unemployment
  29. What is the unemployment that does not go away on its own even in the long run or in other words the amount of unemployment that the economy normally experiences?
    Natural unemployment
  30. The type of unemployment that refers to the year-to-year fluctuations in unemployment around its natural rate.
    Cyclical unemployment
  31. What three categories of people are not in the work force
    students, homemakers, and retirees
  32. the total number of workers, including both the employed and the unemployed
    labor force
  33. people who would like to work but have given up looking for jobs after an unsuccessful
    Discouraged workers
  34. refers to the unemployment that results from the time that it takes to match workers
    with jobs
    Frictional unemployment
  35. refers to the unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one.
    Structural unemployment
  36. the process by which workers find appropriate jobs given their tastes and skills
    Job search
  37. is a government program that partially protects workers’ incomes when they become
    Unemployment insurance
  38. what are above-equilibrium wages paid by firms in order to increase worker productivity
    Efficiency wages
  39. the set of assets in an economy that people regularly use to buy goods and services from other people
  40. an item that buyers give to sellers when they want to purchase goods and services
    Medium of exchange
  41. the yardstick people use to post prices and record debts
    unit of account
  42. an item that people can use to transfer purchasing power from the present to the future
    store of value
  43. This type of money takes
    the form of a commodity with intrinsic value
    Commodity money
  44. the type of money that  is
    used as money because of government decree
    Fiat money
  45. the
    paper bills and coins in the hands of the public
  46. balances
    in bank accounts that depositors can access on demand by writing a check.
    Demand Deposits
  47. Demand deposits, traveler's Checks, other checkable deposits, currency are included in which one M1 or M2
  48. saving deposits, small time deposits, money market mutual funds, and everything in the other category is which category M1 or M2
  49. the
    ease with which an asset can be converted into the economy’s medium of exchange
  50. •Regulates
    banks to ensure they follow federal laws intended to promote safe and sound
    banking practices.

    as a banker’s bank, making loans to banks and as a lender of last resort.

    •Conducts monetary policy by controlling the money supply.
    The three primary  functions of the FED
  51. the quantity of money available in the economy
    money supply
  52. are deposits that banks have received but have not loaned out
  53. the fraction of deposits that banks hold as reserves
    Reserve ratio
  54. the amount of money the banking system generates with each dollar of reserves.
    Money multiplier
  55. When the FED   buys government bonds from or sells government bonds to the public it conducts this
    open market operations
  56. are
    regulations on the minimum amount of reserves that banks must hold against
    reserve requirements
  57. the
    interest rate the Fed charges banks for loans
    Discount rate
  58. •1)
    The Board of Governors

    The Regional Federal Reserve Banks

    The Federal Open Market Committee
    the primary elements of the Federal reserve system