What is the stock market throughout a nation?

Answer 1

Name ________________________________________ Pd ______

Economic Terms:Identify each term in detail. Answer the question that goes along with each term.

Bank: a building in which you deposit or take out your money.

 What does a bank do with the money people deposit in their bank accounts?

Sometimes they give it to the rich people with lots of money and don't pay you back.

Bond: a sealed instrument under which a person, corporation, or government guarantees to pay a stated sum of money on or before a specified day.

 Why do governments issue bonds?

To make sure the balance of money is stabilized.

Capital: the wealth, whether in money or property, owned or employed in business by an individual, firm, corporation.

 What capital would you need to start a lawn service?

A lawn mower and gas

Consumer Price Index (CPI): an index of the changes in the cost of goods and services to a typical consumer, based on the costs of the same goods and services at a base period.

 What is the current CPI in the United States?

The latest government data for September is 215.969

Currency: something that is used as a medium of exchange.

 Find the value of the Euro to the Dollar.

1 Euro = 1.4861 U.S. dollars

Debt: something that is owed or that one is bound to pay to or perform for another.

 How much debt does the average American have?

$8000 in credit card debt

Depression (an economic one): a sustained economic recession in which a nation's Gross National Product (GNP) is falling and marked by low production and sales and a high rate of business failures and unemployment.

 When did the Great Depression happen?

1929-1939

Great Depression: the economic crisis and period of low business activity in the U.S. and other countries, roughly beginning with the stock-market crash in October

 What was the unemployment rate during the Great Depression?

It brought the unemployment rate down 10%

Gross Domestic Product (GDP): gross national product excluding payments on foreign investments

 Find the GDP of the United States and China

US: 14,441,425 China: 4,327,448

Factory System: a manufacturing method for a standardized product or products in which fixed capital, raw material, and labor operations are centralized and sophisticated machinery is often used.

 What famous inventor used the factory system to make Model-T's?

Henry Ford

Federal Reserve: the central bank of the United States; incorporates 12 Federal Reserve branch banks and all national banks and state-chartered commercial banks and some trust companies.

 Who's the Chairman of the Federal Reserve?

Ben bernanke

Inflation: a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency

 What happens to the value of your money when there is inflation?

It is worth a lot less

Investment: the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value.

 What would be a good investment if you had a spare $10,000?

Explain why.

You could invest on a new car. It will build up fast.

Labor: work

 What's a union?

the act of uniting two or more things.

Money: any circulating medium of exchange, including coins, paper money, and demand deposits.

 Name three things that we use as a substitute for money.

Credit card, debit card, checks

Profit: pecuniary gain resulting from the employment of capital in any transaction.

 What were Exxon-Mobil's profits for the year 2008?

$45.2 billion

Recession: a period of an economic contraction, sometimes limited in scope or duration.

 How are home prices affected by a recession?

The prices of them go down

Revenue: the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses.

 Revenue minus ____________ = Profit (fill in the blank)

Speculation: engagement in business transactions involving considerable risk but offering the chance of large gains, esp. trading in commodities, stocks, etc., in the hope of profit from changes in the market price.

 In the 1920's, investors were speculating on stocks. Text p. 730

Stock Market: the market for stocks throughout a nation

 What is the market for stocks throughout a nation?

Supply and Demand:

 What happens to price of something when the supply goes up? Why?

Tariff:

 Why would America use a tariff?

Taxes:

 What is the difference between sales tax and income tax?

Unemployment:

 What is the current unemployment rate in the United States?

All definitions are cited from: http://dictionary.reference.com/