POS U.S.A. Final Exam 7.
What is the type of government policy that governs taxing and spending power's? Be able to
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mexplain how it affects the economy. (Pg. 421 to 424) - ANS >> Fiscal Policy - the government's use
m m m m m m m m m m m m m m m m m m
mof taxing, monetary, and spending powers to manipulate the economy. It uses taxes to raise the
m m m m m m m m m m m m m m m
mrevenue. It determines the amount of productive resources that the government can use for non-
m m m m m m m m m m m m m m
economic demand. m
Know what priority is placed on promoting human rights by the United States.
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How does it rank in comparison to other foreign policy concerns of the U.S? (pg. 462 - 463) - ANS
m m m m m m m m m m m m m m m m m m m
>> Human rights has the least priority in the United States. It is ranked last after security &
m m m m m m m m m m m m m m m m m m
economy (security, economy, human rights).
m m m m m
Politics of African American rights has shifted from voting and employment to other areas, such as
m m m m m m m m m m m m m m m
mdiscrimination of law enforcement agencies in between 2014 to 2020 is called ? Know the details
m m m m m m m m m m m m m m m
mof the movement and their goal. (page 110-111) - ANS >> The Black Lives Matter movement
m m m m m m m m m m m m m m m
mprotested against discrimination against black people, increasing levels of police brutality towards
m m m m m m m m m m m
mblack people, and the unjust killing of black people by white authorities.
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(pg. 412-413) - ANS >> There must be a minimal degree of predictability about basic rules of
m m m m m m m m m m m m m m m m
msocial interaction. Must be a system of "law and order". Participants must be able to assume
m m m m m m m m m m m m m m m
msafety but the people will behave and be bound by calculable laws.
m m m m m m m m m m m
Discuss the importance of monetary policies in relationship to the growth of the economy, and its
m m m m m m m m m m m m m m m
effect on banks in the Federal Reserve System. (pg.419 to 423) - ANS >> Monetary policies
m m m m m m m m m m m m m m m m
manipulate the growth of the entire economy by controlling the availability of money to banks.
m m m m m m m m m m m m m m m
The Federal Reserve System consists of 12 Federal Reserve banks. Exchanges of cash, checks, and
m m m m m m m m m m m m m m m
credit. Monetary policies fight inflation/deflation.
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? What is the policy called?
m m m m m m m m m m m m m m m m m
(pg. 422-423) - ANS >> The Reserve Requirement - the amount of liquidated assets and ready cash
m m m m m m m m m m m m m m m m m
requiring banks to hold in order to meet depositor's demands. Setting the proportion of deposited
m m m m m m m m m m m m m m m
money that a bank must keep "on demand" as it makes all the rest of the deposits available for
m m m m m m m m m m m m m m m m m m m
new loans.
m m
Understand what the open market operation is in relation to the central banking system and how
m m m m m m m m m m m m m m m
it affects the economy in the United States. (pg.419 to 423) - ANS >> A technique used by the
m m m m m m m m m m m m m m m m m m m
Fed, the open market committee of the Federal Reserve buys and sells government securities to
m m m m m m m m m m m m m m m
, m help finance government operations and to reduce or increase the amount of money circulating
m m m m m m m m m m m m m
m the economy.
m
Know what the lending process is for banks in the Federal Reserve System. Federal Reserve
m m m m m m m m m m m m m m
mmember banks lend money to each other at times. Know how rates are set and the term for
m m m m m m m m m m m m m m m m m
mchanging such rates. (pg. 423) - ANS >> The opportunity for member banks to borrow from each
m m m m m m m m m m m m m m m m
mother. This exchange is called the "federal funds market". Federal funds interest rate on the loans
m m m m m m m m m m m m m m m
mbetween banks that the FRB influences by affecting the supply of money available. (Between Banks
m m m m m m m m m m m m m m
m= federal fund rate)
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. How does the
m m m m m m m m m m m m m m m m
mgovernment apply these tools? Understand the reasoning. (pg. 419 to 430) - ANS >> Discount rate
m m m m m m m m m m m m m m m
m- the interest rate changed by the Federal Reserve when commercial banks borrow in order to
m m m m m m m m m m m m m m m
mexpand their lending operations, an effective tool in monetary policy (most powerful tool).
m m m m m m m m m m m m
Reserve Requirement - amount of liquid assets and ready cash that the Federal Reserve requires
m m m m m m m m m m m m m m
mfrom banks m
Federal Funds rate - interest rate on loans (fiscal policy)
m m m m m m m m m
Budget deficit- amount by which government spending exceeds government revenue in fiscal year
m m m m m m m m m m m m
When discussing the Treasury Department, understand its responsibilities and what method it is
m m m m m m m m m m m m
used to administer the government fiscal policy. (pg. 430 to 432) - ANS >> Performs more than
m m m m m m m m m m m m m m m m m
one function of government and traditional controls have had to be adapted to modern economic
m m m m m m m m m m m m m m m
conditions and new technologies.
m m m m
Managing the federal debt m m m
Printing the currency we use m m m m
Administering and policing income tax and other tax collections
m m m m m m m m
Social programs/plans are financed through various methods. What types of financing is used? Be
m m m m m m m m m m m m m
mable to identify the term for the financing of the programs when the recipient is actually paying
m m m m m m m m m m m m m m m m
mfor it from payroll deduction or other means. (pg. 437 to 445) - ANS >> Contributory Program -
m m m m m m m m m m m m m m m m m
mfinanced by taxation "forced savings". Other mandatory contributions by its present or future
m m m m m m m m m m m m
mrecipients (social security) m m
Discuss the future possibilities of social security's financial crisis, and review what types of
m m m m m m m m m m m m m
problems can arise for the nation's finances. Look at ratios of participants and taxes (pg.437 to
m m m m m m m m m m m m m m m m
439) - ANS >> A crisis in the 1970s triggered by the earlier decision to index benefits to the cost
m m m m m m m 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 power's? Be able to
m m m m m m m m m m m m m m m
mexplain how it affects the economy. (Pg. 421 to 424) - ANS >> Fiscal Policy - the government's use
m m m m m m m m m m m m m m m m m m
mof taxing, monetary, and spending powers to manipulate the economy. It uses taxes to raise the
m m m m m m m m m m m m m m m
mrevenue. It determines the amount of productive resources that the government can use for non-
m m m m m m m m m m m m m m
economic demand. m
Know what priority is placed on promoting human rights by the United States.
m m m m m m m m m m m m
How does it rank in comparison to other foreign policy concerns of the U.S? (pg. 462 - 463) - ANS
m m m m m m m m m m m m m m m m m m m
>> Human rights has the least priority in the United States. It is ranked last after security &
m m m m m m m m m m m m m m m m m m
economy (security, economy, human rights).
m m m m m
Politics of African American rights has shifted from voting and employment to other areas, such as
m m m m m m m m m m m m m m m
mdiscrimination of law enforcement agencies in between 2014 to 2020 is called ? Know the details
m m m m m m m m m m m m m m m
mof the movement and their goal. (page 110-111) - ANS >> The Black Lives Matter movement
m m m m m m m m m m m m m m m
mprotested against discrimination against black people, increasing levels of police brutality towards
m m m m m m m m m m m
mblack people, and the unjust killing of black people by white authorities.
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(pg. 412-413) - ANS >> There must be a minimal degree of predictability about basic rules of
m m m m m m m m m m m m m m m m
msocial interaction. Must be a system of "law and order". Participants must be able to assume
m m m m m m m m m m m m m m m
msafety but the people will behave and be bound by calculable laws.
m m m m m m m m m m m
Discuss the importance of monetary policies in relationship to the growth of the economy, and its
m m m m m m m m m m m m m m m
effect on banks in the Federal Reserve System. (pg.419 to 423) - ANS >> Monetary policies
m m m m m m m m m m m m m m m m
manipulate the growth of the entire economy by controlling the availability of money to banks.
m m m m m m m m m m m m m m m
The Federal Reserve System consists of 12 Federal Reserve banks. Exchanges of cash, checks, and
m m m m m m m m m m m m m m m
credit. Monetary policies fight inflation/deflation.
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? What is the policy called?
m m m m m m m m m m m m m m m m m
(pg. 422-423) - ANS >> The Reserve Requirement - the amount of liquidated assets and ready cash
m m m m m m m m m m m m m m m m m
requiring banks to hold in order to meet depositor's demands. Setting the proportion of deposited
m m m m m m m m m m m m m m m
money that a bank must keep "on demand" as it makes all the rest of the deposits available for
m m m m m m m m m m m m m m m m m m m
new loans.
m m
Understand what the open market operation is in relation to the central banking system and how
m m m m m m m m m m m m m m m
it affects the economy in the United States. (pg.419 to 423) - ANS >> A technique used by the
m m m m m m m m m m m m m m m m m m m
Fed, the open market committee of the Federal Reserve buys and sells government securities to
m m m m m m m m m m m m m m m
, m help finance government operations and to reduce or increase the amount of money circulating
m m m m m m m m m m m m m
m the economy.
m
Know what the lending process is for banks in the Federal Reserve System. Federal Reserve
m m m m m m m m m m m m m m
mmember banks lend money to each other at times. Know how rates are set and the term for
m m m m m m m m m m m m m m m m m
mchanging such rates. (pg. 423) - ANS >> The opportunity for member banks to borrow from each
m m m m m m m m m m m m m m m m
mother. This exchange is called the "federal funds market". Federal funds interest rate on the loans
m m m m m m m m m m m m m m m
mbetween banks that the FRB influences by affecting the supply of money available. (Between Banks
m m m m m m m m m m m m m m
m= federal fund rate)
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. How does the
m m m m m m m m m m m m m m m m
mgovernment apply these tools? Understand the reasoning. (pg. 419 to 430) - ANS >> Discount rate
m m m m m m m m m m m m m m m
m- the interest rate changed by the Federal Reserve when commercial banks borrow in order to
m m m m m m m m m m m m m m m
mexpand their lending operations, an effective tool in monetary policy (most powerful tool).
m m m m m m m m m m m m
Reserve Requirement - amount of liquid assets and ready cash that the Federal Reserve requires
m m m m m m m m m m m m m m
mfrom banks m
Federal Funds rate - interest rate on loans (fiscal policy)
m m m m m m m m m
Budget deficit- amount by which government spending exceeds government revenue in fiscal year
m m m m m m m m m m m m
When discussing the Treasury Department, understand its responsibilities and what method it is
m m m m m m m m m m m m
used to administer the government fiscal policy. (pg. 430 to 432) - ANS >> Performs more than
m m m m m m m m m m m m m m m m m
one function of government and traditional controls have had to be adapted to modern economic
m m m m m m m m m m m m m m m
conditions and new technologies.
m m m m
Managing the federal debt m m m
Printing the currency we use m m m m
Administering and policing income tax and other tax collections
m m m m m m m m
Social programs/plans are financed through various methods. What types of financing is used? Be
m m m m m m m m m m m m m
mable to identify the term for the financing of the programs when the recipient is actually paying
m m m m m m m m m m m m m m m m
mfor it from payroll deduction or other means. (pg. 437 to 445) - ANS >> Contributory Program -
m m m m m m m m m m m m m m m m m
mfinanced by taxation "forced savings". Other mandatory contributions by its present or future
m m m m m m m m m m m m
mrecipients (social security) m m
Discuss the future possibilities of social security's financial crisis, and review what types of
m m m m m m m m m m m m m
problems can arise for the nation's finances. Look at ratios of participants and taxes (pg.437 to
m m m m m m m m m m m m m m m m
439) - ANS >> A crisis in the 1970s triggered by the earlier decision to index benefits to the cost
m m m m m m m m m m m m m m m m m m m m
