Exam (elaborations)
FBLA Intro to Business Concepts - PART A
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- FBLA Intro To Business Concepts - PART A
FBLA Intro to Business Concepts - PART A
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FBLA Intro to Business Concepts -PART A
Discuss the nature of monetary policy and the role of the Federal Reserve
System. - -Monetary policy involves a central bank's management of a
country's money supply and interest rates to achieve economic goals, such
as controlling inflation and promoting full employment. The Federal Reserve,
often referred to as the Fed, is the central bank of the United States,
responsible for implementing monetary policy through tools like open market
operations, the discount rate, and reserve requirements.
- Discuss the general methods of financing business ventures and various
sources of financing. - -Businesses can obtain financing through equity
financing and debt financing. Equity financing involves selling ownership
shares to investors like angel investors or venture capitalists. Debt financing
involves borrowing funds from sources like banks or by issuing bonds.
- Develop, evaluate, and modify a spending/savings plan. - -Creating a
spending/savings plan starts with making a budget that outlines expected
income and expenses. The plan includes estimating all sources of income,
listing expected expenses (both fixed and variable), and allocating a portion
of income for savings and emergencies. Regular evaluation and modification
ensure financial goals are met.
- Describe the purpose of budgets and identify the steps in preparing a good
budget. - -Budgets serve as financial roadmaps, helping allocate funds
effectively. Steps in preparing a good budget involve identifying financial
goals, categorizing expenses (e.g., housing, transportation), estimating
income and expenses for a specific period, and ongoing monitoring and
adjustment.
- Demonstrate proper procedures for managing a checking account. - -
Managing a checking account includes tasks like writing accurate checks,
recording all transactions in the check register, reconciling the account by
comparing it to bank statements, and responsibly using electronic funds
transfers and debit cards to avoid overdrafts and fees.
- Compare services provided by banks, credit unions, and other financial
institutions. - -Financial institutions offer services such as savings and
checking accounts, loans, including mortgages and personal loans,
investment products like certificates of deposit (CDs), and financial advice
and wealth management services.
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