Economics chp. 13-14 Test

What young American in 1729 wrote a pamphlet advocating use of paper money in the colonies?

Ben Franklin

What is the lowest point of the business cycle called?

trough

What is the numerical value of the base year in a CPI?

100

Whose picture was on the first ever $1 bill?

Salmon P. Chase

What is the name of the Union money during the Civil War?

Greenbacks

the coinage act of 1792 created a _____ System, minting both gold and silver coins.

bimetallic

The dollar sign probably originated as a way of abbreviating this Mexican coin:

peso

Paper money printed in New Orleans during the Civil War bore the name “Dix”, meaning:

10

The first Federal building in America was the U.S. mint in this city:

Philadelphia

On the U.S. Seal, what object is the Eagle grasping to represent peace?

olive branch

Term for the period of time when the economy is growing and GDP is rising

Expansion/Recovery

What kind of economic indicators occur at the same time as the trend?

Coincident

During the colonial period, from what nation was the U.S. getting most of its gold coin from?

Spain

What person was supposed to appear on new $20 bills in 2020, but her debut has been delayed?

Harriet Tubman

What figure is the narrowest definition of money, including cash, coin and checking saving accounts.

M1

_____ demand is the total demand for everyone in the economy.

Aggregate

What kind of economic indicators come after the trend?

lagging

War would be an example of this kind of factor in driving an economic trend?

Psychological

How many positive quarters of GDP are required to end a recession?

1

The 4 categories of Gdp by Income Categories are Wages, Interest, Profit, and _______.

Rent

What federal office maintains CPI data price data?

BLS

GDP - _____ = NDP

Depreciation

On the great seal, what does the Latin phrase Novo Order Seclorum mean?

Now Order of the Ages

What ancient people are credited with creating the first coined money?

Lydians

The word “cent” gets its name from the Latin word for this:

hundred

Term for money that has a use outside of its use as money:

Commodity Money

Money whose value is backed by gold or silver:

Representative Money

Money whose value is what the government says it is:

Fiat Money

Business Cycles are measured in _____

Real GDP

How many negative quarters of Real GDP constitutes a Recession?

2

GDP - inflation = ______

Real GDP

Term for when the general price level begins to fall?

Deflation

On the great seal, what does the term E Pluribus Unum mean?

From Many, One

NDP -Indirect Business Taxes = ______

National Income

______ coins are those whose value of metal is less than the face value of the coin.

token

Who was the first English Ruler to put dates on his coins?

Edward VI

What President’s opposition to the 2nd Bank of the United States led to its death in 1835?

Andrew Jackson

What was the 1st American colony to mint its own silver coin in 1652, which featured a pine tree?

Massachusetts

From what time period is inflation measured?

Year to Year

Exports - Imports = ______ Exports

Net

What category is the largest in GDP by Economic Activity?

Consumer Goods & Services

What is the term for the highest point of the Business Cycle?

peak

What event finally brought the U.S. out of the Great Depression?

World War 2

What event in 1929 was the beginning of the Great Depression?

Stock Market Crash

Term for American paper money during the Revolutionary War:

Continentials

What kind of money is authorized in the Constitution?

coins

What organization was created by Congress in 1913 to regulate the Money Supply?

Federal Reserve

On the Great Seal, what is the eagle grasping to represent war?

arrows

National Income + ______ = Personal Income

Transfer Payments

What is the term for trading one item directly for another?

Barter

What function of money allows you to not have to spend it now, and instead use it in the future?

Store of Value

Function of Money that makes it a yardstick to compare value?

Unit of Accounting

Function of Money that makes trade easy?

Medium or Exchange

What characteristic of money means it is able to withstand wear and tear?

durable

wWhat characteristic of money means it is easy to carry around?

portable

What characteristic of money means it can be divided into smaller parts?

divisible

What characteristic of money means it is rare, which gives it value?

scarce

What value of money means its value does not change rapidly?

stable

Who was the first Secretary of the Treasury?

Hamilton

How long was the charter of the 1st Bank of the United States?

20 years

What founding father preferred state charted banks over national banks?

Jefferson

What bank insurance was created in 1934 by the Glass-Steagall Act?

FDIC

what president called for the Bank Holiday in 1933 when he took office?

FDR

What kind of Financial Institutions were bailed out of ruin by Congress in 1989?

Savings and Loans

What does ATM stand for?

Automated Teller Machine

What does EFT stand for?

Electronic Fund Transfer

What native American woman and her child appeared on $1 U.S. coins in 2000?

Sacajawea

A ____ card automatically withdraws money from a checking account

debit

About what percent of money in circulation are coins?

5%

What is the largest denomination of Federal Reserve Note in Circulation?

$100

what nation has the world’s highest per capita GDP?

Luxembourg

The _____ Power of the dollar declines during inflation.

Purchasing

The GDP Price ______ is an index that is used to remove inflation from GDP.

Deflator

Where Aggregate Demand and Aggregate Supply meet is the…

Equilibrium Price Level and Real Domestic Output

How many months is a quarter of a year?

3

What economic condition usually follows the end of wars?

Recession

What did 19th century English Economist, W. Stanley Jevons, think causes business cycles?

Sunspots

Government policy can effect business cycles by its policies of Taxing and _______.

Spending

War and weather are examples of ______ factors.

external

the 9/11 attack is an example of a _______ factor.

psychological