Warm up 1. What is the difference between arbitration and mediation when a third party is involved in contract disputes? 2. What is the difference between.

Slides:



Advertisements
Similar presentations
Text Chapters 14 and 15. Chapter 15 Medium of Exchange – able to barter or exchange for other goods Unit of Accounting – measuring tool used to compare.
Advertisements

Mr. Weiss Unit 5 Vocabulary Words 1. gross domestic product (GDP); 2. inflation; 3. real GDP; 4. consumer price index (CPI) _____total dollar value of.
Notebook # 24- Economics 15-2 Monetary Policy. Monetary Policy ESSENTIAL QUESTIONS: What is the purpose of the Federal Reserve System? What are the structures.
1 Chapter 5 Money and the Federal Reserve These slides supplement the textbook, but should not replace reading the textbook.
Fiscal & Monetary Policy How the Federal Government can Influence the American Economy How the Federal Government can Influence the American Economy.
Fiscal and Monetary Policies The Government’s Role In the Economy.
The Federal Reserve System and Monetary Policy
The Federal Reserve System How does the Federal Reserve System operate? 1.
Unit 8 “Money”. I. Three Uses of Money A.Medium of Exchange 1.Any object that is accepted for goods and services 2.Barter- w/o money, trade goods and.
The Federal Reserve. Federal Reserve Basics: Considered the Nation’s central bank Does not serve individuals and businesses; its customers are thousands.
Government & the U. S. Economy What does the government do to keep the U.S. economy from acting like a roller coaster: INFLATION rising prices & increasing.
The Federal Reserve System
FISCAL AND MONETARY POLICY. ECONOMIC GOALS Full Employment Enough jobs to employ all able and willing to work Unemployment/Employment Data Bureau of Labor.
The Federal Reserve System
THE FEDERAL RESERVE You can BANK on it!. Objectives STUDENTS WILL BE ABLE TO: Understand why the formation of a National Bank was necessary. Describe.
Monetary Policy Tools. Monetary Policy Federal Reserve Act of 1913 created the Federal Reserve System –“The Fed” provides the U.S. banking system with.
The Federal Reserve and Monetary Policy The Federal Reserve Bank serves as the CENTRAL bank for the United States. The Federal Reserve Bank serves as.
FISCAL AND MONETARY POLICY How do policymakers use fiscal and monetary policy to stabilize the US economy?
Essential Standard 1.00 Understand the role of business in the global economy. 1.
Money Fiat/Legal Tender – money that has value because a government fiat, or order, has established it as acceptable for payment of debts. Medium of Exchange.
Monetary Policy review huh???? can you break it downnnnn??? MMMMonetary policy – things the Federal Reserve does to regulate the economy & influence.
FEDERAL RESERVE (FED) *** In charge of the nation’s money supply.
Measuring the Economy Goals 9.01 & Why does the government need to know what the economy is doing?  The government makes decisions that affect.
Money, Banking, and the Federal Reserve
The Federal Reserve In Action. What is the Fed?  Central bank of the United States  Established in 1913  Purpose is to ensure a stable economy for.
MACROECONOMICS.  Analyzes interrelationships among sectors of the economy.
Monetary Policy Control of money supply (M) and interest rates (i)
Government Chapter 20.2 Monetary Policy. General Economics competition The existence of two or more companies within a single industry that are trying.
Basics of Economics Key terms and ideas. Economics ❖ The science that deals with the production, distribution, and consumption of goods and services,
The Federal Reserve In Action. What is the Fed?  Central bank of the United States  Established in 1913  Purpose is to ensure a stable economy for.
1 Money Creation ©2006 South-Western College Publishing.
FISCAL AND MONETARY POLICY MIX Principles of Macroeconomics Lecture 8c.
Money serves a purpose Money is anything accepted as final payment for goods and services It is used for Medium of exchange Unit of account Store of value.
Federal Reserve Bank ucation/federal-reserve-and- you/chapter-1.
The Federal Reserve System and Monetary Policy. Money Final payment for goods and services Purposes of money: – Medium of Exchange: It can be used to.
The Federal Reserve In Action. What is the Fed?  Central bank of the United States  Established in 1913  Purpose is to ensure a stable economy for.
The Federal Reserve In Action. What is the Fed?  Central bank of the United States  Established in 1913 (Federal Reserve Act of 1913)  Purpose is to.
Actions of the Federal Reserve
What Is Money?  Serves ALL the following purposes:  Medium of exchange: accepted as payment for goods and services (and debts).  Store of value: can.
The Federal Reserve System. Prior to 1913, hundreds of national banks in the U.S. could print as much paper money as they wanted They could lend a lot.
Economics Unit 4: Macroeconomics Vocabulary Review.
Warm Up  What is money?. Quiz Today!  Suggestion….  Review your notes on  types of economies  Labor unions.
  GDP (Gross Domestic Product) – Basic measure of a nation’s economic output and income. Total market value of all goods and services produced in the.
Macroeconomics The study of behavior and decision making of entire economies.
WEDNESDAY EQ: What is money, who controls it, and what part does it play in our economy?!
Higher Level Questions: (p.40) 1. What are public goods and services? 2. How do governments produce public goods and services? 3. What is the role of the.
S SOL 13c Government tax increases reduce the funds available for individual and business spending; tax decreases increase funds for individual and business.
MONEY AND MONETARY POLICY
Federal Reserve.
Unwrap the objectives Factual: Define Inflation and Deflation
Understand the role of business in the global economy.

Unemployment Rate = (Number of Unemployed / Labor Force) x 100
Federal Reserve (Monetary Policy).
Monetary Policy.
Money and Monetary Policy
Monetary Policy.
Money Supply and Interest Rates
BANKING & MONETARY POLICY
(& The Federal Reserve)
Monetary Policy.
$ $ $ $ $ $ $ $ OGT Mr. Riddlebarger $ $ $.
Macroeconomics Review
Monetary Policy 1. Understand the tools used to conduct monetary policy. 2. Describe the use of fractional reserves.
The Federal Reserve: Functions & Monetary Policy Tools
Monetary policy Monetary: relating to money or currency
The Federal Reserve: Functions & Monetary Policy Tools
Monetary Policy and the fed
MONEY & BANKING FEDERAL RESERVE
Presentation transcript:

Warm up 1. What is the difference between arbitration and mediation when a third party is involved in contract disputes? 2. What is the difference between a strike and a lockout? 3. Why is money important and/or useful to you?

7.4 Identify the role of money in the economy. And some other economic indicators

3 Uses of Money 1. Medium of Exchange  accepted for goods and services  Can be any object 2. Unit of Account  Means of comparing the values of goods and services 3. Store of Value  Money keeps its value in two forms: currency (bills and coins) and deposits (pay debts, convert to currency)

Interest Cost paid for borrowing money  You pay interest on your loans  The bank pays you interest for money you lend them too

inflation Prices go up on everything which means the value of money goes down!

Deflation The value of money goes up and prices go down

The Consumer Price Index CPI A measure of the prices for essential goods This is how inflation/deflation is measured

Civilian Labor Force Americans who have jobs or are seeking a job, are at least 16 years old, are not serving in the military and are not institutionalized. In other words: all Americans that are eligible to work.

Measuring Unemployment Unemployment is the measure of all Americans who are eligible to work AND currently seeking employment.

The Federal Reserve System

Federal Reserve Act of 1913 created the Federal Reserve System (The Fed) goal: A stable Economy maximum employment stable prices moderate interest rates

The FED affects the economy through Monetary Policy Controlling the amount of money and interest rates offered to private banks. Reserve Requirement –  the amount of money in the Federal Reserve Banks

2 Monetary Policies Easy-money policy  reduces rates, lowers reserve requirement, prints currency= more money in economy Tight-money policy  increases rates, raises reserve requirement= less money in the economy

Interest Rates Prime rate  rate of interest for short term loans  (to good customers or other banks) Discount (key) rate  cost of borrowing from the Fed  Reducing the rate- encourages banks to borrow more money so they lend more to other people  Increasing the rate - slows down economy by discouraging borrowing

The debate Pros 1. established a national currency.  Prior to the Fed, there were over 30,000 currencies in the USA. 2. protects small banks 3. helps to control inflation and deflation 4. The Federal Reserve helps to represent America and its financial interests. 5. Audit smaller banks… this helps with corruption Cons considered unconstitutional Makes government larger while it is a government institution, is still run by an individual often cozier with private interests than public interests. Lobbyist influence policy = corruption

Inside the Fed Parts 1 & 2