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Compile a list of 10 items that you use frequently, and then identify alternative goods of comparable worth that you would be willing to trade for them
Why do you suppose that other assets, such as common stocks or real estate, are not suitable reserves?
Evaluating The FDIC insures deposits up to $100,000. What would you do if you had $400,000 you wanted to deposit and insure?
Describe one or two ways you think American money might change even more in the future.
Making Inferences How did the popularity of checking accounts lead to the expansion of a fractional reserve system?
The BIG Idea How does regulating the U.S. banking system reflect our concern about balancing monetary policies with a free enterprise economy?
Explain why member banks borrow from the Fed. Describe the three major tools of monetary policy available to the Fed.
Explain why the U.S. government created the Federal Deposit Insurance Corporation. Describe the role of the Board of Governors of the Fed.
Identify the problems that existed with pre-Civil War currency. Explain why the National Banking System was created during the Civil War.
The BIG Idea Why and how does the Fed conduct monetary policy? Contrasting How do tight money and easy money impact the economy?
Listing What are the components of the Federal Reserve System? Describing What are the additional responsibilities the Fed has beyond monetary policy?
Explain the significance of member bank, monetary policy, interest rate, easy money policy, tight money policy, open market operations and discount rate.
Ask whether the bank is a national bank or a state bank and how that designation affects the bank's operation and relationship with the Fed.
Making Comparisons How do the operations of a central bank like the Fed compare to the operations of a normal bank?
Why did the United States move to a single national currency in the 1860s? How does the system of fractional reserves create money?
Describing How did experiences during and after the Revolutionary War affect banking in the United States?
Explain the significance of state bank, legal tender, national bank, national currency, gold certificate, silver certificate, central bank and bank run.
Write the actions on a piece of paper. Next to each, identify which of the functions of money your actions illustrated.
How does money advance the exchange of goods and services? Why would some people be more willing to accept commodity money rather than fiat money?
Explain the significance of Federal Reserve System (Fed), Federal Reserve note, barter economy, commodity money, fiat money, specie and monetary unit.
Explain the significance of inflation, deflation, price index, consumer price index, market basket, base year, creeping inflation and hyperinflation.
Suppose you were the head of a household. How would you plan spending for your family if you had an accurate prediction of future business cycles?
Determining Cause and Effect Assume that business inventories are falling. What would these indicators say about the economy, and why?
What are the two main phases of a business cycle
Explain the significance of business cycles, business fluctuation, recession, peak, trough, expansion, trend line, depression and depression scrip.