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

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

Civics and Economics EOC Review 1.Medium of exchange 2.Store of value 3.Measure of value

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Civics and Economics EOC Review 1.To obtain goods they cannot produce 2.Comparative Advantage 3.To create jobs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Civics and Economics EOC Review What are the 3 types of taxes?What are the 3 types of taxes?

Civics and Economics EOC Review 1.Proportional Taxes: percentage paid in tax remains constant as income of the taxpayer changes.percentage paid in tax remains constant as income of the taxpayer changes.

Civics and Economics EOC Review 2. Progressive Tax:2. Progressive Tax: –Tax rate increases as your income increases (income tax)

Civics and Economics EOC Review 3. Regressive tax:3. Regressive tax: –Percentage you pay in tax goes down the higher your income grows. (sales tax)

Civics and Economics EOC Review What is an excise tax?What is an excise tax?

Civics and Economics EOC Review Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the productExcise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product –Ex) gasoline, cigarettes, alcohol

Civics and Economics EOC Review What is the Estate Tax?What is the Estate Tax?

Civics and Economics EOC Review Estate Tax:Estate Tax: –imposed on the transfer of the "taxable estate" of a deceased person

Civics and Economics EOC Review What are some examples of Payroll taxes?What are some examples of Payroll taxes?

Civics and Economics EOC Review Medicare, Social Security, etc.Medicare, Social Security, etc.