Public and Private Solutions Unit Test Review – Flashcards
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Which group does the Fed serve?
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financial institutions
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US federal income tax is progressive by law, but which best explains why is it sometimes regressive in practice?
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High-income earners use tax laws to their advantage to reduce their tax rates.
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The EPA tries to balance protecting business interests with protecting
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air.
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Which of these are goals of an expansionary policy? Check all that apply.
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1,3,6
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Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?
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the SEC
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Which describes an example of the economic system known as free enterprise?
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People are free to shop for the best price on products because there is open competition.
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On which of these are individuals required to pay income taxes in the United States? Check all that apply.
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1,2,5
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What happens when a bank is required to hold more money in reserve?
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It has less money for loans.
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To reduce pollution, the legislates and enforces regulations that protect the air, water, and land.
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Environmental Protection Agency
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Which body manages the Fed?
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the Federal Reserve Board
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Before creating a business plan, an entrepreneur must research businesses in the past.
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similar
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Weighing advantages and disadvantages can help a student to
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make a decision.
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What circumstances during the early days of industrialization led to a need for reform? Check all that apply.
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1,3,4
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What part does interest play in deficit spending?
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Governments must pay interest on money they borrow when they take on debt.
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Which statement explains a way how the Securities and Exchange Commission upholds fair business practices?
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The SEC generally oversees financial advisers.
