1. Unit 5 and 6
Financial Markets, Consumer/Personal Finance, Economic Indicators and Measurements

2. Fiscal Policies
Fiscal Policy- uses taxes and government spending to affect the economy.
Expansionary- stimulate economy
Contractionary- plan to reduce aggregate demand and slow economy (addresses inflation: decreases the amount of money in circulation.)
Discretionary- stabilize the economy.

3.
Recessions and Fiscal Policy- EconMovies #5: Cars (5:45)

4. Fiscal Policy and Stimulus: Crash Course Economics #8
11:53

5. **Business Cycle
A business cycle is a series of growing and shrinking periods of economic activity, measured by increases or decreases in GDP.

6. Stages of a Business Cycle
Expansionary: economic growth & low unemployment
Peak: GDP reaches its peak
Recession (Contraction): High levels of unemployment and high levels of inflation
Trough: GDP and employment stop declining

7. Results in Economic Growth
Increased free trade agreements
Increased productivity
If businesses can decrease the amount of labor needed to increase inventories
Example: the introduction of new manufacturing technologies

8. Savings & Investment Spear & Fisherman- 8:44

9. Savings and Investment
1st step in creating a savings account: Set financial goals
Financial Institutions- Primary function is provide access to capital for people and businesses.
Banks, stock markets, insurance markets, and bond markets.

10. Higher degree of risk investments include: stocks and corporate bonds.
Risks of Investments
Higher degree of risk investments include: stocks and corporate bonds.
One risk from investing in stock market is the loss of purchasing power.
Higher risk=Higher return

11. Insured & Uninsured bank accounts
Insured bank accounts- checking, savings, and certificates of deposit (CDs) -(≥$250k)
Uninsured bank accounts- Investments in mutual funds, stocks, or bonds

12. Retirement Accounts
Individual retirement account (IRA)- most secure retirement plan.
401k- offered as a benefit of employment to which eligible employees may make salary reduction contributions toward retirement.
rises and falls with the stock market.

13.
Money and Finance: Crash Course Economics #11 (10:35)

14. 401k Investopedia

15. Business Cycle Activity
-Individually, colorfully illustrate the stages of the business cycle. Each stage of the business cycle should be drawn out (Expansion, Peak, Contraction (Recession), and Trough).
-Provide at least one sentence explaining what was drawn for each stage of the business cycle.

16. Different Loans
Secured loans - are protected by an asset or collateral of some sort.
Unsecured loans – ex: credit card purchases or education loans.

17. Credit
Open-ended credit- allows a borrower to repeatedly use it within a certain monetary amount (Like a credit card.)
Closed-ended- Ex: car loans and mortgages

18. Credit Card Advice
The most effective way to manage credit card debt is by paying off the balance each month.
The following action would improve a credit score: paying off all debts.

19. Mortgages & Home Ownership
In order to qualify for a mortgage a loan officer will consider an applicant’s net worth.
Assets – Liabilities = Net Worth
Benefits of home ownership includes building equity

20. 2008 Financial Crisis
11:24

21. Annual Cost of Owning a Home
Paying property taxes
Keeping up with repairs and maintenance
Making payments on principal, interest, and insurance.

22. Benefit of Purchasing Insurance
Available when an unexpected need for repair or services arises.

23. Bankruptcy Bankruptcy has a negative impact on future credit options.
You lose all credit cards, can’t get a mortgage, and you still have to pay back some debts like student loans and alimony.

24. OSHA
The Occupational Safety and Health Administration (OSHA) is an example of a government agency that regulates businesses.

25. Investing in a Market Economy
One effect of an increase in the amount of savings in an economy is- an increase in financial resources for business investment.

26. *Risk & Return Risk-the possibility for loss on an investment
Return- is the profit or loss made on an investment
Diversification- distributing investments among different financial assets to maximize return and limit risk.