Name: _________________________________________ Date: _________________ Block: ________ Civics & Economics: Financial Institutions (CE.12c) & Impact of Taxation (CE.13c) ● Essential Understandings: ○ Private financial institutions act as intermediaries between ____________________________ and ____________________________ that include households and business investors. ○ The government ____________________________, ____________________________, and ____________________________ to influence economic activity. ● Essential Questions: ○ How do financial institutions make the deposits of savers available to borrowers? ○ How does the government influence economic activity? ● Essential Knowledge: ○ Private financial institutions ■ Include ____________________________, savings and loans, and ____________________________ ■ Receive ______________________ and make ______________________ ■ Encourage saving and investing by paying ____________________________ on deposits ○ Government tax increases ____________________________ the funds available for individual and business spending. ○ Increased government borrowing ____________________________ funds available for borrowing by individuals and businesses; decreased government borrowing ____________________________ funds available for borrowing by individuals and businesses. ○ Increased government spending increases ____________________________, which may increase employment and production; decreased government spending reduces demand, which may result in a ____________________________ of the economy. ○ Increased government spending may result in high ____________________________ ; decreased government spending may results in ____________________________ taxes. ○ The ____________________________ to the Constitution of the United States of America authorizes Congress to tax personal and business incomes.