Review materials and study guide for the Money and Banking Test Nov. 19th

Check out Big Ben Bernanke talking about the FED and Texas Bill speaking about the characteristics and types of money!

Money and Banking

Study Guide for the Big Test

You have a Big Test on Wednesday, November 18th. Here is a summary of the information we have learned. You will also see what documents you have that will help you study.



Case study of Sarah Peters and her debt problems.

-do you remember the questions from our quiz?

-Why can credit card debt be bad?

-Is there an example of good debt? How?



Chapter 8 in the Economics Workbook – MONEY

-there will be questions from this reading and the homework assignment



Foreign Exchange Rates

- how well do you understand how foreign exchange rates

are determined? Can you explain? See notes you wrote about this…



Inflation

-Review the handouts – What is inflation? Why does it happen?

-How well do you understand how inflation works?



Financial Institutions

-The BANKS notes from class will help

-The The World of Banking homework will help you here

- Be A Better Banker will help you too



The Federal Reserve Banking System (The FED)

-Use your Fed Video Notes to help you study

-Use the Fed WEB Questions handout to help you study

-There will be many questions concerning the FED on this Big TEST!!



Recession

-Review handout – what is recession? Why does it happen?

-How well do you understand how recession works?



Here are some things to review and know for the Big Test. Be sure you UNDERSTAND them – don’t just memorize.

1. Sarah’s problems and solutions in the Case Study.

2. What is money? Why do we use money? (the reasons given in class)

3. What makes up the money supply?

4. The Characteristics of Money – this is what you hope your money is like – 4 characteristics—this will actually be a good essay question.

5. What are the three types of money? What are the types of money in use today? Explain and give examples

6. Identify various forms of money in the past and give reasons why they would not be good forms of money today.

7. Are Credit Cards part of the money supply? Explain why or why not….

8. What is the FED?

9. Who is the head of the FED?

10. What is the FED’s essential mission?

11. What are the 3 main responsibilities the FED has to help it carry out its essential mission?

12. In your own words, what is monetary policy?

13. What are 3 goals of the FED’s monetary policy?

14. Who does inflation hurt and how can it hurt us? (You had 4 examples)

15. Be prepared for questions that test your thinking ability. Some examples will be: if the FED/Government wants to encourage people to spend more or try to avoid a recession what could it do? If the FED wants to avoid inflation or it wants to try to slow down spending in the economy, what could it do?

16. What is the FED’s role as a Bank Supervisor?

17. KNOW some of the history of money and banking in our country (Review the FED Today video notes and the FED WEB Questions handout)

18. Give some examples of the financial services the FED offers our nation’s financial institutions (banks).

19. What are the three types of Financial Institutions found in this country? (notes from Banks power point)

20. Why don’t we just print up more money to pay off our national debts or to just give more money to everybody? EXPLAIN WHY!!!! YOU WILL HAVE TO ON YOUR BIG TEST!

21. Our paper currency is called a ______________ _______________ __________.

22. You will have some questions in which you will need a calculator. Be prepared to figure out an exchange rate question. There will also be a question that deals with interests rates at banks.

23. EXPLAIN how do banks make their money or “profit”?

24. What is purchasing or buying power?

25. Why do Money Markets and Certificates of Deposit, or CD’s, pay more interest than traditional savings accounts?

26. Why are checking accounts in banks so important?

27. There will be a number of true and false that deal with all these subjects.



28. What is inflation? (from discussions in class) MUY IMPORTANTE!

29. What is a recession? (from discussions in class) MUY IMPORTANTE!

30. How are foreign exchange rates determined? (3 things we learned from the class activity)

31. Where are foreign exchange rates decided?

32. WHY ARE LOANS SO IMPORTANT? What do we do with loans? What about access to loans/credit? Think about everything we talked about with Kiva.
33. What is credit?
34. What is a credit score?
35. What is credit history?

Study Guide for Supply and Demand Quiz!

Supply and Demand

Study Guide

Study Assistants – You have these items to help you study.
Chapter 3 in your economics book - case study and info...
Calling all Babysitters article and questions
Supply and Demand homework - what is Demand?
Supply and Demand homework - what is Supply?
Terms to Understand

Supply    Elastic Demand        Inelastic Demand
Law of Demand      Law of Supply      Profit Motive
Demand


Concepts to Understand and other Things to Know

Directions: These should be answered as if they were short answer questions on the Big Test. Use your own paper to answer these in detail – so you feel confident you know it!

-What three conditions must be present in order for demand to exist?
-Economists say demand is like a rubber band – explain. What determines if it stretches or not?
-What are production costs? Are there different types? What affect do production costs have on supply? Give examples.
-Explain how the level of supply for a good or service could be changed. What are the ways in which this may happen?
-Explain how the level of demand for a good or service could be changed. What are the ways in which this may happen?
-What kind of an affect do shortages and/or surpluses have upon the prices of goods or services?
-What is important to a Producer? What most concerns a Producer?
-Identify the major factor that could influence a change in demand for a good. How and what would it affect?
-With your knowledge of supply and demand – how can you explain the rise and fall of stock prices?
-Do you understand the main idea in the article Calling All Babysitters? Explain then…
-When there is a want or need for a good/service and people are willing to pay but not able, how does a producer (business) create the ability to pay – thus increasing demand?
What are some factors that could change the level of demand for a good or service?

What are some factors that could change the level of supply for a good or service?

You own many different automobile dealerships. You decide to bring the price down on the new hybrid vehicles on your lots. You want to sell these and get them out of your stores. After the sale prices come out, you still don’t sell many. Demand for these hybrid vehicles is ____________________________.

Why would a gold mine filled with gold be closed down?

What do all business owners worry the most about? (what they must take into account – hint)

Stock Market and Investing Quiz is Friday, October 9th!

STudy Guide for the Quiz is below:

Introduction to Investing and the Stock Markets
Quiz Study Helper


These items will help you prepare for the quiz:
•Uncle Mort’s Money article
•Building a Fortune – Joe Becherer article
•Strategies for Stock Selection article (How to Pick a Stock)
•Chapter 8 in your Econ book (incl. the case study – the foundation for every unit in class
•Stocks, Bonds and Such homework
•Compound Interest homework (double your money)
•How to read a stock page/stock quote practice questions
•True and False Quiz Activity Q & A (remember the signs you held up?)
•Handy Dandy Stock Guide (How to read a stock page/stock quote)

Major Stock Concepts to know and know well:
 What is speculating?
 Why do people invest?
 Who is your new best friend? How does he work for you?
 What does it mean to own stock?
 How do you know what stock to pick?
 How do you read a stock table?
 What does it mean to sell short?
 What is a stock split?
 Why do corporations issue stock?
 Why don’t you keep your life savings in a mattress in your home?
 When is a good time to begin investing in yourself?
 What are the three largest stock exchanges in the United States?
What are commodities?
What is the DOW? What is it's purpose?

READ BELOW:

Make sure you can answer the questions above, thoroughly! If you can’t ask Mr. M!

Do you know how to answer questions using a stock page? If you don’t, see Mr. M asap!!! If you need more practice I can help you.

In the articles (and case study) above, think about the big ideas that I wanted you to get from these readings. If you are not sure, ask!

Quiz Prep for Wed. 23rd Economics Quiz

Here is the study guide for the Quiz on Wed. 23rd.

Introduction to Economics and Economic Systems
September 23rd , 2008 QUIZ HELPER

What will help you prepare?
Chapters 1 and 2 from the Economics book.
The Free Market reading handed out in class (will be in your reading section in the binder)
ALL NOTES taken in class in your binder
No Such Thing As a Free Lunch - Basic Economic Concepts notes
No Such Thing As a Free Lunch - Factors of Production and the 4 economic questions notes
Opportunity Cost Questions (done in class)
Trade Activity notes
Karl Marx notes
Homework - Economic Systems of the World (Tradition and Command)
Homework - Economic Systems of the World (Free Market)
Class activities – Feudal M&M’s, Standing in Lines (Command), Zapitalism, Adam Smith play


Concepts to Understand
Scarcity Profit trade Opportunity Cost Feudalism Incentive
Goods cost benefit Markets Macroeconomics
Services Competition Wants vs. Needs Profit motive
Microeconomics Entrepreneur Traditional Economic System
Free Market Economic System Command Economic System Bourgeoisie vs. Proletariat

Definitions

Know our class definitions: Economics and Economic System

Economic Systems

Here are some items to help you prepare – if you know these really well – you should be in good shape.
1. What did ADAM SMITH believe in – explain what he believed then…(what was the title of his famous book)
2. What are the three economic systems of the world today? How well do you know them? Can describe them? Very important to understand the details of each system, plus the advantages and disadvantages.
Also, do you remember what it was like for Joseph Lekuton in the traditional economy vs. what it was like for the Rumanian girl in the command economy (these come from our two readings)
3. List AS MANY important economic freedoms that you can from the Zapitalism simulation…
4. What if instead of playing Zapitalism we had played an economic simulation called Zommandism? Yes, this would have been very boring but give me two reasons why. Just think about it, it isn’t hard to figure this one out.
5. We spent some time looking at Feudalism – it was most like which economic system of today? (most like which of the three we learned) -
6. You have purchased many new entertainment systems for your electronics department. The demand for these items is high. However, you find that hardly any of them are being sold.
a. What could be the problem? (hint: it isn’t the quality)
b. What could be your solution?
7. You have purchased enough Ballentine Bowling Balls to fill your store. You are the only retailer in town to stock this wonderful yet exciting new item. What will you most likely do?
8. Who was Karl Marx? What were his economic and political beliefs? Did he write any books explaining his ideas? What did he say?
9. What middleman or place do most retailers go to purchase the items to stock in their store?
10. Do you know your Factors of Production and 4 Economic Questions?
11. How well do you know the Free Market system? Can you name and describe the 6 characteristics of the Free Market System? Be able to discuss each characteristic, using info given in class….
12. Why was the Paper Airplane Challenge such a good activity to introduce and teach the characteristics of the Free Market System?
13. PLEASE EXPECT questions from the material in the previous unit to be on this quiz too…
14. What is competition and how does it benefit us?
15. What is Profit Motive and why is it so important?

This quiz will have short answer, fill-in-the-blank, multiple choice, and essay questions.