11 terms

Economics- Room 126 GED set 2

Federal Reserve System (the Fed)
The central banking authority in the US, which supervises commercial banks by monitoring accounts and controlling interest rates.
Reserve requirement
The percentage of their deposits that member banks must keep available in the Federal Reserve Bank.
Discount rate
The rate of interest a Federal reserve bank charges other banks.
Minimum wage
The lowest legal wage that may be paid to a worker.
Prime rate
The lowest interest rate that banks charge their best customers.
GDP ...Gross Domestic Product
The total monetary value of all goods and services produced in that country during a year.
Real GDP.. Real Gross Domestic Product
The value of a nation's production of goods and services during a year, corrected for the effects of inflation.
The economic system favored by the industrialized western world, allows for ownership of goods and the means of production. Basic control is in private hands.
Communism Economic System
The State owns the means of production and plans the economy. Examples are China and North Korea. In theory, everyone gets what they need by working for the good of all.
Similar to communism ... State owns major means of production and business planning, but encourages competition in small businesses. State provides major services.
Three major Economic Systems in the world are...
Capitalism, Communism, Socialism