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Economics

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Kathryn Lebsack

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Term1/8
Which of the following can the Fed accomplish by raising or lowering the required reserve ratio
Definition1/8

Increase or decrease the money supply

Term1/8
What are Normal Trade Relations
Definition1/8

The designation of a country with which beneficial trade status (lower tariffs, limited restrictions) has been declared. The status Permanent Normal Trade Relations (PNTR) was created in 1998 to replace the former title of Most Favored nation (MFN).

Term1/8
What best explains what happens to the exchange rate of a floating currency
Definition1/8

The exchange rate for that currency changes depending on the operations of the free market

Term1/8
What describes what is done with foreign currency in the currency exchange market
Definition1/8

Bought and sold using different foreign currencies.

Term1/8
Describes the most likely effect of the fed buying millions of dollars in t-bonds
Definition1/8

an increase in the money supply
An increase in the money supply

Term1/8
How would you match each type of tariff A revenue tariff B protective tariff with its purpose C retaliatory tariff 1 earn money for the government 2 engage in a trade war 3 help domestic producers
Definition1/8

Revenue tariff - Earn Money for the Government

Protective Tariff - Help domestic producers

Retaliatory tariff - engage in a trade war

Term1/8
What is the difference between a tariff and an excise tax
Definition1/8

A tariff is the tax placed on the shipment of imported goods that are imported. An excise tax is an indirect tax that is charged upon the sale of one good.

Term1/8
What best explains what a forward contract is
Definition1/8

A contract to deliver a particular commodity to a buyer sometime in the future.

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Cards in this guide (8)
Which of the following can the Fed accomplish by raising or lowering the required reserve ratio

Increase or decrease the money supply

What are Normal Trade Relations

The designation of a country with which beneficial trade status (lower tariffs, limited restrictions) has been declared. The status Permanent Normal Trade Relations (PNTR) was created in 1998 to replace the former title of Most Favored nation (MFN).

What best explains what happens to the exchange rate of a floating currency

The exchange rate for that currency changes depending on the operations of the free market

What describes what is done with foreign currency in the currency exchange market

Bought and sold using different foreign currencies.

Describes the most likely effect of the fed buying millions of dollars in t-bonds

an increase in the money supply
An increase in the money supply

How would you match each type of tariff A revenue tariff B protective tariff with its purpose C retaliatory tariff 1 earn money for the government 2 engage in a trade war 3 help domestic producers

Revenue tariff - Earn Money for the Government

Protective Tariff - Help domestic producers

Retaliatory tariff - engage in a trade war

What is the difference between a tariff and an excise tax

A tariff is the tax placed on the shipment of imported goods that are imported. An excise tax is an indirect tax that is charged upon the sale of one good.

What best explains what a forward contract is

A contract to deliver a particular commodity to a buyer sometime in the future.

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