Unit 2 review
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List and explain the 4 elements of business
What DO businesses need to consider when going into business? Why?
What is the most common type of business in the US?
What are the characteristics, advantages and disadvantages of the 3 main types of businesses?
How do corporations finance their start-up and operation?
What is a limited partnership?
What is the difference between a stock and a bond?
What is a franchise?
Explain the responsibilities businesses have toward their consumers, their owners, their employees and the
community.
List and explain the 4 economic phases
Draw and label a business cycle
What is fiscal policy? What does the government do?
What is monetary policy? What does the government do?
How will a reduction in the loan discount rate affect economic growth?
How many district banks are in the federal reserve?
What is inflation?
What determines inflation?
How does the government keep track of inflation?
Explain consumer price index.
What is implicit GDP price deflator?
What are the 6 GDP categories?
What is the difference between loose and tight money? What can they lead to?
What is Fractional reserve banking?
Explain stock indexes, stock exchanges, capital gain, and dividends.
What is the difference between a bull and bear market?
What is a bank run? Why did these occur starting in 1929?
What was the New Deal?
Why did critics believe the New Deal favored socialism?
Explain the Glass-Steagal Act and Federal Securities Act. Why were these created?
List and explain the 4 types of unemployment.
Explain checking accounts, savings accounts, certificate of deposits, and loans. What are they, how are they
used?
What did the National Bank Act of 1863 accomplish?
What is the main purpose of the FDIC?
Why were the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC)
important?
Other Terms and Concepts–
Transparency
Articles of partnership
Charter
Limited partnership
Hoovervile
Limited Liability
Reserve
General Partnership