K guys,can you help me out,anyway possible is appreciated(: 1. Give TWO examples of financial capital. 2. Define inflation in your own words. 3. What is one problem with inflation? 4. What does inflation do to the value of financial assets? 5. What does the national debt represent? 6. For most developed countries, what does the national debt consist of? 7. Give an example of an IOU instrument the US government uses. 8. What is the Federal Reserve System? 9. What are its duties? 10. Explain in your own words how the Fed represents a mixture of government power and private ownership. 11. What kinds of safeguards have been established to ensure the Fed.'s neutrality and impartiality in economic affairs? Private property (Your right to own something is protected by law.) Free competition (Unfair trade practices, such as monopolies, are illegal.) Savers and investors (Laws regulate the banking industry.) Consumers (Consumer safety laws exist to make sure things we buy are safe.) Workers (The government sets a minimum wage.) 14. Select TWO of the above categories and give a specific example of how government intervenes in each of those areas. Give the example for the first category that you selected. 15. Give the example for the second category that you selected. The government also provides public goods and services. If you read the section on Public Expenditure, you will see a list of government departments and their respective responsibilities. Just from looking at this list, you can get an idea of the many services the government provides. 16. List AT LEAST FIVE public goods or services that the government provides that YOU benefit from. These can be related to the lists on this web site, or things you've thought up on your own. Finally, the government also helps in dealing with the nation's economic problems, by taxing, spending, and regulating the money supply. 17. List AT LEAST TWO kinds of taxes that you or that your family pays. 18. Based on what you've learned in this lesson, why is the US economy called a mixed economy? Because the government takes in less in taxes than it spends, it must borrow money each year. This borrowing is similar to individual overspending through the use of credit cards. The government borrows money to cover deficit spending by selling securities to individuals and businesses. The money the government owes on these securities is the National Debt. The federal securities include Treasury bonds, notes, and bills. United States Savings Bonds are actually loans that individuals make to the federal government. While the government acquires new debt each year by issuing new securities, it retires old debt by paying off bonds, notes, and bills as they come due. Do you think this is a problem? If so, you may use it as the basis for one of the next questions. 19. Name TWO major economic problems that exist in this country today. (If you haven't come up with any ideas from this lesson's reading and can't think of any off the top of your head, have a look in your local newspaper.) For each, include a) why it is a problem and b) what you think could be done to solve it. Please name the first economic problem. 20. Please name the second economic problem. 21. Write AT LEAST a paragraph describing Keynes' main contributions to economic thought and influence on modern economies. 22. To what two areas of control has the US government’s monetary policy historically been assigned? 23. What do all of these things have in common? Stock prices up Increase in household wealth Change in value of the dollar on currency markets I ncreased demand for big-ticket items Housing boom