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T-EPF M2L1 Key Terms
Traditional EPF Module 2 Lesson 1 Key Terms
Term | Definition |
---|---|
Fiscal Policy | Taxing and spending policies used by Congress to control fluctuations of the business cycle. |
Monetary Policy | Policies used by the Federal Reserve bank to control the money supply and regulate fluctuations of the business cycle. |
Unemployment Rate | Percentage of people looking for full time employment but cannot find jobs. |
Interest Rates | The cost of borrowing money. |
Economic Growth | State of economic expansion characterized by increasing GDP and low unemployment. |
Business Cycle | Regular fluctuations of the economy between periods of growth and decline. |
Standard of Living | A measure of the economic prosperity of a country based on the per capita GDP. |
Recession | Economic condition that is the result of 6 months of declining GDP. |
Depression | Economic condition that is the result of a prolonged period of declining GDP. |
Consumer Price Index | An average of the price of goods and services that indicates the purchasing power of the dollar. |
Reserve Requirement | The amount of money that banks are required to keep in reserve and are unable to loan out to individuals or businesses determined by the Federal Reserve. |
Federal Open Market Committee | Advisory group in the Federal Reserve that works to make decisions about the availability of credit and the nation’s money supply. |
Open Market Operations | The buying and selling of government securities that is used by the Federal Reserve to control the money supply. |
Discount Rate | The interest rate that is charged to banks for borrowing money by the Federal Reserve. |
Federal Reserve Bank | The national bank charged with controlling the supply of money available in the United States. |
Gross Domestic Product | The value of goods and services produced by a country in a given year. |
Per Capita GDP | The GDP divided by the total population of a country. |
Inflation | A rise in the overall level of prices over time. |
Reserve Ratio | The amount of money banks must keep on hand at all times. |