Unit 12 government involvement in economics

Central bank

an institution that lends money to other banks; place where the government does its banking business.

Financial Capital

money needed to start or expand a business

Checks

Legal documents that function like cash

Currency

Coins and paper bills used as money

Financial Institution

businesses that provide banking services to consumers and businesses

Debit card

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder

Facilitate

To help or make something easier

Inflation

A general and progressive increase in prices

Credit union

A nonprofit financial institution that is owned by its members and organized for their benefit.

Deposit

to put money into an account

Interest

the payment people receive when they save money; Payment people pay when they borrow money

Loan

Money that is borrowed that is expected to be paid back with interest.

Monopoly

Complete control of a product or business by one person or group

antitrust laws

Legislation to prevent new monopolies from forming and to preserve and promote competition

Consumer Rights

Body of laws that pertains to things the produces of goods MUST DO to protect customers from harm

Negotiate

To discuss something in an attempt to reach agreement

Property rights

The rights of an individual to own, use, rent, invest in, buy, and sell property.

Global trade

import and export of goods and services across international boundaries

Contract

An agreement between two or more parties that is enforceable in court

income tax

Tax paid to the state, federal, and local governments based on income earned over the past year.

levy

to impose or collect, usually taxes

property tax

A tax on the value of a property (house)

Fine

a sum of money to be paid to the state as punishment for an offense

Sales tax

a tax on the dollar value of a good or service being sold

Efficiency

using resources in such a way as to maximize the production of goods and services

Obtain

to get

export

send (goods or services) to another country for sale.

specialize

when people, businesses, or countries concentrate on goods and services they can produce better than anyone else

import

bring (goods or services) into a country from abroad for sale.

innovation

Introduction of a new idea or an improvement of an existing technological product, system, or method of doing something.