Part 5: Management of a Commercial Society
42 | Financial Institutions
Nations often establish rules and guidelines that help to determine the supply and availability of economic currency (money).
43 | Fractional Reserve Banking
The financial system uses the base money to generate "deposit money," sometimes called "inside money," through a process of fractional reserve banking.
45 | Gross Domestic Product (GDP)
Gross Domestic Product (GDP) is a broad measure of economic activity that is commonly used to gauge the economic performance of a whole country or region, and to make international comparisons.
46 | Unemployment Rate
The unemployment rate, as officially measured, is a ratio of the number of unemployed individuals by all individuals currently in the labor force. The labor force is the number of people eligible for work.
48 | Fiscal Policy
Fiscal policy is the use of government spending and taxation to influence the economy.
49 | Monetary Policy
Monetary policy is the means through which a government, typically through a central bank, influences a nation's money supply.