POS Final Exam 3.
What is the type of government policy that governs taxing and spending powers? Be able to
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explain how it affects the economy. - ANS >> Fiscal policy; it is used to affect economic growth
m m m m m m m m m m m m m m m m m m
and raise revenue and can be used for redistributing wealth
m m m m m m m m m m
Know what priority is placed on promoting human rights by the US? - ANS >> Least priority
m m m m m m m m m m m m m m m m
How do human rights rank in comparison to other foreign policy concerns of the US? - ANS >>
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Security and economic strength come first
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Politics of Black rights have shifted from voting and employment to other areas, such as
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mdiscrimination of law enforcement agencies in between 2014 and 2020 is called? - ANS >> Black
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mLives Matter movement
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Know the details of the Black Lives Matter movement and their goals. - ANS >>
m m m m m m m m m m m m m m m
Know why a system of law and order is a necessary precondition for a healthy market economy. -
m m m m m m m m m m m m m m m m m
mANS >> Market participants must be able to assume not only that they can get to the market
m m m m m m m m m m m m m m m m m
msafely - that they wont get robbed on the way - but also that they people they deal with behave
m m m m m m m m m m m m m m m m m m m
mpredictably and be bound by calculable laws.
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Discuss the importance of monetary policies in relationship to the growth of the economy. - ANS
m m m m m m m m m m m m m m m
>> Monetary policy entails regulation of the economy through manipulation of the supply of
m m m m m m m m m m m m m m
money, the price of money, and the availability of credit.
m m m m m m m m m m
What is the effect of monetary policies on the Federal Reserve System? - ANS >> Federal Reserve
m m m m m m m m m m m m m m m m
Banks made to manage the supply of money and credit in the economy and uses monetary policy
m m m m m m m m m m m m m m m m m
to fight inflation and deflation in the United States.
m m m m m m m m m
Why does the Federal Reserve System require member banks to retain certain types of liquid
m m m m m m m m m m m m m m
assets on hand in order to meet depositors' demands for their money? - ANS >> In order for the
m m m m m m m m m m m m m m m m m m m
banks to have enough money to cover withdrawals and checks written by its depositors,
m m m m m m m m m m m m m m
What is the policy called where member banks to retain certain types of liquid assets on hand in
m m m m m m m m m m m m m m m m m
order to meet depositors' demands for their money? - ANS >> Called reserve requirement
m m m m m m m m m m m m m m
Understand what the open market operation is in relationship to the central banking system. - ANS
m m m m m m m m m m m m m m m
>> Open market operation is where the Fed buys and sells government securities (such as bonds)
m m m m m m m m m m m m m m m m
to fund governmental activities and to increase or decrease the supply of money in the economy.
m m m m m m m m m m m m m m m m
How does the open market operation in relationship to central banking system affect the economy
m m m m m m m m m m m m m m
. - ANS >> When the Fed buys government securities in the open market, in increases the amount
m m m m m m m m m m m m m m m m m m
, m of money available to consumers to spend or invest, when it sells government securities, it
m m m m m m m m m m m m m m
m reduces the money supply
m m m
What is the lending process for banks in the Federal Reserve System - ANS >> One of the original
m m m m m m m m m m m m m m m m m m
reasons for creating a federal reserve system, this power (the opportunity for member banks to
m m m m m m m m m m m m m m m
borrow from one another) enables banks in a growing region, facing great demand for credit , to
m m m m m m m m m m m m m m m m m
borrow money from banks in regions where the demand is much lower
m m m m m m m m m m m m
Know how the rates are set and the term for changing such rate is set in the lending process for
m m m m m m m m m m m m m m m m m m m
mbanks in the Federal Reserve System - ANS >> Exchange is called the federal funds market,
m m m m m m m m m m m m m m m
minterest rate charged by one bank to another is called the federal funds rate
m m m m m m m m m m m m m
Review the methods and tools that the government uses in order to manipulate the economy,
m m m m m m m m m m m m m m
msuch as, the use of the discount rate, and spending by the federal government. - ANS >> Reserve
m m m m m m m m m m m m m m m m m
mrequirement, discount rate, and the federal funds rate
m m m m m m m
What is the reserve requirement? - ANS >> The amount of liquid assets and ready cash federal
m m m m m m m m m m m m m m m m
reserve system requires from banks
m m m m m
What is the discount rate? - ANS >> The most powerful tool and is changed by the Federal
m m m m m m m m m m m m m m m m m
Reserve when commercial banks borrow in order to expand their lending operations
m m m m m m m m m m m m
What is the federal funds rate? - ANS >> An interest rate that banks charge each other
m m m m m m m m m m m m m m m m
When discussing the treasury department, understand its responsibilities - ANS >> Treasury
m m m m m m m m m m m
department administers and policies income tax and other tax collections, manages federal debt,
m m m m m m m m m m m m m
and prints currency
m m m
Social programs/plans are financed through various methods, what type of financing is used? - ANS
m m m m m m m m m m m m m m
m>> Taxation or other mandatory contributions by its present or future recipients
m m m m m m m m m m m
Be able to identify the term for the financing of the social programs when the recipient is actually
m m m m m m m m m m m m m m m m m
mpaying for it from payroll deduction or other means - ANS >> Contributory programs
m m m m m m m m m m m m m
What are the future possibilities of social security's financial crisis - ANS >> The number of retired
m m m m m m m m m m m m m m m m
Americans is rising because of an increase in life expectancy, social security faces the challenge of
m m m m m m m m m m m m m m m m
remaining solvent for future generations. Ratio of workers to retired people was 16 to 1 in the
m m m m m m m m m m m m m m m m m
50s. Now 3 to 1. Going to keep going down because of baby boomers
m m m m m m m m m m m m m m
When Medicare benefits increased government spending as it did during the Bush administration in
m m m m m m m m m m m m m
2003, what affect did it have on government taxes and spending policies? - ANS >> Government
m m m m m m m m m m m m m m m m
was spending more money when they added prescription drugs in the Bush administration and
m m m m m m m m m m m m m m
were not charging more. Did not equal out until they raised the taxes
m m m m m m m m m m m m m
What is the type of government policy that governs taxing and spending powers? Be able to
m m m m m m m m m m m m m m m
explain how it affects the economy. - ANS >> Fiscal policy; it is used to affect economic growth
m m m m m m m m m m m m m m m m m m
and raise revenue and can be used for redistributing wealth
m m m m m m m m m m
Know what priority is placed on promoting human rights by the US? - ANS >> Least priority
m m m m m m m m m m m m m m m m
How do human rights rank in comparison to other foreign policy concerns of the US? - ANS >>
m m m m m m m m m m m m m m m m m
Security and economic strength come first
m m m m m m
Politics of Black rights have shifted from voting and employment to other areas, such as
m m m m m m m m m m m m m m
mdiscrimination of law enforcement agencies in between 2014 and 2020 is called? - ANS >> Black
m m m m m m m m m m m m m m m
mLives Matter movement
m m
Know the details of the Black Lives Matter movement and their goals. - ANS >>
m m m m m m m m m m m m m m m
Know why a system of law and order is a necessary precondition for a healthy market economy. -
m m m m m m m m m m m m m m m m m
mANS >> Market participants must be able to assume not only that they can get to the market
m m m m m m m m m m m m m m m m m
msafely - that they wont get robbed on the way - but also that they people they deal with behave
m m m m m m m m m m m m m m m m m m m
mpredictably and be bound by calculable laws.
m m m m m m
Discuss the importance of monetary policies in relationship to the growth of the economy. - ANS
m m m m m m m m m m m m m m m
>> Monetary policy entails regulation of the economy through manipulation of the supply of
m m m m m m m m m m m m m m
money, the price of money, and the availability of credit.
m m m m m m m m m m
What is the effect of monetary policies on the Federal Reserve System? - ANS >> Federal Reserve
m m m m m m m m m m m m m m m m
Banks made to manage the supply of money and credit in the economy and uses monetary policy
m m m m m m m m m m m m m m m m m
to fight inflation and deflation in the United States.
m m m m m m m m m
Why does the Federal Reserve System require member banks to retain certain types of liquid
m m m m m m m m m m m m m m
assets on hand in order to meet depositors' demands for their money? - ANS >> In order for the
m m m m m m m m m m m m m m m m m m m
banks to have enough money to cover withdrawals and checks written by its depositors,
m m m m m m m m m m m m m m
What is the policy called where member banks to retain certain types of liquid assets on hand in
m m m m m m m m m m m m m m m m m
order to meet depositors' demands for their money? - ANS >> Called reserve requirement
m m m m m m m m m m m m m m
Understand what the open market operation is in relationship to the central banking system. - ANS
m m m m m m m m m m m m m m m
>> Open market operation is where the Fed buys and sells government securities (such as bonds)
m m m m m m m m m m m m m m m m
to fund governmental activities and to increase or decrease the supply of money in the economy.
m m m m m m m m m m m m m m m m
How does the open market operation in relationship to central banking system affect the economy
m m m m m m m m m m m m m m
. - ANS >> When the Fed buys government securities in the open market, in increases the amount
m m m m m m m m m m m m m m m m m m
, m of money available to consumers to spend or invest, when it sells government securities, it
m m m m m m m m m m m m m m
m reduces the money supply
m m m
What is the lending process for banks in the Federal Reserve System - ANS >> One of the original
m m m m m m m m m m m m m m m m m m
reasons for creating a federal reserve system, this power (the opportunity for member banks to
m m m m m m m m m m m m m m m
borrow from one another) enables banks in a growing region, facing great demand for credit , to
m m m m m m m m m m m m m m m m m
borrow money from banks in regions where the demand is much lower
m m m m m m m m m m m m
Know how the rates are set and the term for changing such rate is set in the lending process for
m m m m m m m m m m m m m m m m m m m
mbanks in the Federal Reserve System - ANS >> Exchange is called the federal funds market,
m m m m m m m m m m m m m m m
minterest rate charged by one bank to another is called the federal funds rate
m m m m m m m m m m m m m
Review the methods and tools that the government uses in order to manipulate the economy,
m m m m m m m m m m m m m m
msuch as, the use of the discount rate, and spending by the federal government. - ANS >> Reserve
m m m m m m m m m m m m m m m m m
mrequirement, discount rate, and the federal funds rate
m m m m m m m
What is the reserve requirement? - ANS >> The amount of liquid assets and ready cash federal
m m m m m m m m m m m m m m m m
reserve system requires from banks
m m m m m
What is the discount rate? - ANS >> The most powerful tool and is changed by the Federal
m m m m m m m m m m m m m m m m m
Reserve when commercial banks borrow in order to expand their lending operations
m m m m m m m m m m m m
What is the federal funds rate? - ANS >> An interest rate that banks charge each other
m m m m m m m m m m m m m m m m
When discussing the treasury department, understand its responsibilities - ANS >> Treasury
m m m m m m m m m m m
department administers and policies income tax and other tax collections, manages federal debt,
m m m m m m m m m m m m m
and prints currency
m m m
Social programs/plans are financed through various methods, what type of financing is used? - ANS
m m m m m m m m m m m m m m
m>> Taxation or other mandatory contributions by its present or future recipients
m m m m m m m m m m m
Be able to identify the term for the financing of the social programs when the recipient is actually
m m m m m m m m m m m m m m m m m
mpaying for it from payroll deduction or other means - ANS >> Contributory programs
m m m m m m m m m m m m m
What are the future possibilities of social security's financial crisis - ANS >> The number of retired
m m m m m m m m m m m m m m m m
Americans is rising because of an increase in life expectancy, social security faces the challenge of
m m m m m m m m m m m m m m m m
remaining solvent for future generations. Ratio of workers to retired people was 16 to 1 in the
m m m m m m m m m m m m m m m m m
50s. Now 3 to 1. Going to keep going down because of baby boomers
m m m m m m m m m m m m m m
When Medicare benefits increased government spending as it did during the Bush administration in
m m m m m m m m m m m m m
2003, what affect did it have on government taxes and spending policies? - ANS >> Government
m m m m m m m m m m m m m m m m
was spending more money when they added prescription drugs in the Bush administration and
m m m m m m m m m m m m m m
were not charging more. Did not equal out until they raised the taxes
m m m m m m m m m m m m m
