Section 5 Review

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Across
  1. 3. This is the way that the Federal Reserve lends money to the Bank.
  2. 5. This is the requirement to pay someone in the future. It is often convoluted with “debt”.
  3. 6. This is a shared, diversified, stock portfolio.
  4. 11. This is when the government borrows too much money (Often to pay off debts) and as a result, it decreases the money supply and makes it harder for individuals and firms to borrow money.
  5. 12. Assuming a constant rate of growth, this is what a dollar will be worth later in time.
  6. 13. The value of this is derived only be the value placed in the money.
  7. 14. This provides liquid assets in the form of deposits to lenders, and uses their funds to finance borrower’s investment spending.
  8. 16. This is the calculation for the how many dollars is created by each additional dollar invested in banks.
  9. 18. This entitles the owner to future income from the seller.
  10. 19. The is the price charged for use of Savings. It is often charged yearly as a percentage of the amount that was lent.
  11. 20. This means holding purchasing power over time. It is crucial for money to do this to be viable. It is a large reason many people don’t consider Bitcoin to be money.
  12. 21. When the populace fears for the scarcity of money, they often do this ____________. When they go to their banks and demand withdrawal of their funds.
Down
  1. 1. This is an asset that you use for trading for other goods and services rather than for consumption?
  2. 2. Most Countries have this institution, In America it is known as the “Federal Reserve.”
  3. 4. This is the central tool of the Federal reserve and monetary policy. This is how the Fed (Central Bank) Increases or reduces the Money supply.
  4. 7. This is an asset that can be easily sold for cash.
  5. 8. This states, that an amount of money in-hand today is worth more than the same amount in the future.
  6. 9. When the Government has a ___________________ it spends more than it has collected in Taxes. Due to Inflation, Most advanced economies run these every year.
  7. 10. When the government spends Less than was planned for the year, they run a ________________
  8. 15. This is the fraction of your money that the bank holds and does not lend out.
  9. 17. This aspect of Money allows people to understand values compared to other goods.