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GRADUATED TAX: A type of progressive tax in which the tax rate is higher as the value of the taxed item increases. For example a graduated sales tax would be one with a 5 percent tax rate on the first $10 of sales, 10 percent tax rate on the any sales between $10 and $50, then a 15 percent rate for anything above $50. Our personal income tax system uses graduated taxes.
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Lesson 20: Federal Reserve System | Unit 4: Monetary Policy
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Page: 16 of 20
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Topic:
Reserve Requirements
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Reserve requirements are the regulations the Fed uses to ensure banks keep enough reserves to back deposits.- In principle, reserve requirements can be used to control the money supply. In practice, reserve requirement changes would cause serious bank instability.
- The Federal Reserve System is charged with ensuring that banks keep enough reserves, through legal reserve requirements.
- Reserve requirements change over the years, keeping pace with the changing structure of the banking system.
- They are currently in the 1% to 3% for checkable deposits. These are the reserves that banks use to cash checks, process checks, and conduct daily business.
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AGGREGATE SUPPLY INCREASE, SHORT-RUN AGGREGATE MARKET A shock to the short-run aggregate market caused by an increase in aggregate supply, resulting in and illustrated by a rightward shift of the short-run aggregate supply curve. An increase in aggregate supply in the short-run aggregate market results in a decrease in the price level and an increase in real production. The level of real production resulting from the shock can be greater or less than full-employment real production.
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BLUE PLACIDOLA
[What's This?]
Today, you are likely to spend a great deal of time touring the new suburban shopping complex hoping to buy either a lazy Susan for you dining room table or a set of serrated steak knives, with durable plastic handles. Be on the lookout for rusty deck screws.
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A scripophilist is one who collects rare stock and bond certificates, usually from extinct companies.
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"Sometimes when you innovate, you make mistakes. It is best to admit them quickly and get on with improving your other innovations. " -- Steve Jobs, Apple Computer founder
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Bank Note
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