EOC Review Civics and Economics Money, Banking and International Trade Civics and Economics EOC Review

Civics and Economics EOC What are the functions of money? Civics and Economics EOC Review

Civics and Economics EOC Medium of exchange Store of value Measure of value Civics and Economics EOC Review

Civics and Economics EOC What are coins? What is currency? Civics and Economics EOC Review

Civics and Economics EOC Currency- includes coins and paper money. Civics and Economics EOC Review

Civics and Economics EOC What are commercial banks? Civics and Economics EOC Review

Civics and Economics EOC Commercial banks are financial institutions that offer full banking services. Examples? Civics and Economics EOC Review

Civics and Economics EOC What is the FDIC? Civics and Economics EOC Review

Civics and Economics EOC FDIC- Federal Deposit Insurance Corporation- insures individual account up to $100,000. Civics and Economics EOC Review

Civics and Economics EOC What is the Fed? How many district banks does it include? Civics and Economics EOC Review

Civics and Economics EOC The Fed is the central bank of the United States. Divided into 12 district banks. Civics and Economics EOC Review

Civics and Economics EOC What group oversees the direction of the Fed? Civics and Economics EOC Review

Civics and Economics EOC A Board of Governors oversees the Fed. They are appointed by the Pres. and approved by the Senate. Civics and Economics EOC Review

Civics and Economics EOC What is monetary policy? Civics and Economics EOC Review

Civics and Economics EOC Monetary policy- controlling the supply of money and the cost of borrowing money. Civics and Economics EOC Review

Civics and Economics EOC If the Fed wants to lower the interest rates…. If the Fed wants to raise the interest rates… Civics and Economics EOC Review

Civics and Economics EOC Expanding the $ supply = a lower interest rate. Contracting the $ supply = a higher interest rate. Civics and Economics EOC Review

Civics and Economics EOC What are the types of deposit accounts? Civics and Economics EOC Review

Civics and Economics EOC Checking account Savings account Certificates of Deposit (CDs) Civics and Economics EOC Review

Civics and Economics EOC What act of Congress established the FDIC? Civics and Economics EOC Review

Civics and Economics EOC Glass-Steagall Banking Act Civics and Economics EOC Review

Civics and Economics EOC What is the Gramm-Leach-Bliley Act? Civics and Economics EOC Review

Civics and Economics EOC 1999; permits bank holding companies to engage in a full range of banking activities. Could create “universal banks” Civics and Economics EOC Review

Civics and Economics EOC What are imports? What are exports? Civics and Economics EOC Review

Civics and Economics EOC Imports- goods purchased from other countries Exports- goods sold to other countries Civics and Economics EOC Review

Civics and Economics EOC What is comparative advantage? Civics and Economics EOC Review

Civics and Economics EOC Comparative advantage: Ability of a country to produce a good at a lower cost than another country can. Civics and Economics EOC Review

Civics and Economics EOC Why do nations trade? Civics and Economics EOC Review

Civics and Economics EOC To obtain goods they cannot produce Comparative Advantage To create jobs Civics and Economics EOC Review

Civics and Economics EOC What are tariffs? Civics and Economics EOC Review

Civics and Economics EOC Tariff- custom tax, tax on imported good. Civics and Economics EOC Review

Civics and Economics EOC What is a quota? Civics and Economics EOC Review

Civics and Economics EOC Quota- limits on the amount of foreign goods imported Civics and Economics EOC Review

Civics and Economics EOC What does free trade mean? Civics and Economics EOC Review

Civics and Economics EOC Free trade- no limits or laws that block trades. Civics and Economics EOC Review

Civics and Economics EOC What is the European Union? Civics and Economics EOC Review

Civics and Economics EOC The European Union (EU) is a regional trade agreement in Europe. Share currency, free trade agreements, etc. Civics and Economics EOC Review

Civics and Economics EOC What is NAFTA? Civics and Economics EOC Review

Civics and Economics EOC North American Free Trade Agreement (US, Canada, Mexico) Civics and Economics EOC Review

Civics and Economics EOC What is the WTO? Civics and Economics EOC Review

Civics and Economics EOC WTO- World Trade Organization. International body regulating trade among nations. Civics and Economics EOC Review

Civics and Economics EOC What is a trade deficit? Civics and Economics EOC Review

Civics and Economics EOC Trade deficit- When the value of the products it imports exceeds the value of the products it imports. Civics and Economics EOC Review

Civics and Economics EOC What is a trade surplus? Civics and Economics EOC Review

Civics and Economics EOC Trade surplus- When the value of its exports exceeds the value of its imports. Civics and Economics EOC Review

Civics and Economics EOC What is the United Nations (UN)? Civics and Economics EOC Review

Civics and Economics EOC The United Nation’s goal is keeping peace among the countries of the world. Civics and Economics EOC Review