
`Commodity Money`	`Money with value in itself, like gold or silver.`
`Representative Money`	`Money backed by something of value, like a gold certificate.`
`Fiat Money`	`Government-issued money not backed by a physical commodity, like the U.S. dollar.`
`M1`	`Most liquid forms of money: cash, coins, and checking deposits.`
`M2`	`M1 plus savings accounts, CDs, and other near-money assets.`
`Fractional Reserve Banking`	`System where banks keep a fraction of deposits and loan out the rest.`
`Inflation`	`A general increase in prices and fall in the purchasing value of money.`
`Deflation`	`A general decline in prices and increase in the value of money.`
`Hyperinflation`	`Very rapid inflation that destroys the value of currency.`
`Consumer Price Index (CPI)`	`A measure of inflation based on changes in the prices of a typical basket of goods.`
`The Federal Reserve`	`The central bank of the U.S.; controls monetary policy.`
`FDIC`	`Government insurance for bank deposits, protects up to $250,000.`
`Fiscal Policy`	`Government use of taxes and spending to influence the economy.`
`Stimulus Package`	`Government spending designed to boost the economy during a slowdown.`
`The New Deal`	`FDR’s programs to combat the Great Depression (e.g., Social Security, jobs programs).`
`Savings and Loans Institutions`	`Banks focused on home loans; many failed in the 1980s.`
`Silicon Valley Bank`	`A modern bank that collapsed in 2023 due to a liquidity crisis.`
`Wildcat Banking`	`Unregulated banking practices before the creation of the Federal Reserve.`
`Free Trade`	`Trade between countries without tariffs or restrictions.`
`Trade Protectionism`	`Policies like tariffs to protect domestic industries from foreign competition.`
`Imports`	`Goods brought into a country from abroad.`
`Exports`	`Goods sold from a country to other nations.`
`Trade Surplus`	`When a country exports more than it imports.`
`Trade Deficit`	`When a country imports more than it exports.`
`World Trade Organization (WTO)`	`Global organization that regulates international trade.`
`Globalization`	`Increasing global economic interdependence and trade.`
`GDP`	`Gross Domestic Product: total value of goods/services produced in a country.`
`Recession`	`A period of economic decline with falling GDP for two straight quarters.`
`Great Depression`	`Severe global economic downturn during the 1930s.`
`Consumer Confidence`	`How optimistic consumers feel about the economy; affects spending.`
`Corporation`	`A legal business entity owned by shareholders.`
`U.S. Steel`	`A large industrial monopoly in the early 20th century.`
`Standard Oil`	`Major oil monopoly broken up under antitrust laws.`
`Monopoly`	`Market with one seller dominating supply.`
`Perfect Competition`	`Many sellers, identical products, easy market entry.`
`Collusive Oligarchy`	`A few firms working together to control prices (illegal in U.S.).`
`Competitive Oligarchy`	`A few large firms competing in the same market.`
`McDonaldization`	`A business model focused on efficiency, predictability, and control.`
`Sanctions`	`Restrictions placed on trade for political or economic reasons.`
`Gold Standard`	`A monetary system where currency is backed by gold.`
`Consumer Price Index`	`Tracks inflation by measuring the cost of a fixed basket of goods.`

Untitled Flashcards Set