Earned Income - Money earned from a job.
Portfolio Income - Money earned from paper. Dividend
Passive Income - Money earned from a business.
Disposable Income - Money left over after bills are paid.
Gross or Taxable Income - Income before taxes.
Net Income - Income after taxes
-------Federal Reserve Act of 1913
- Formed by Congress
- Functions as the nation’s central bank
- Promotes maximum employment, stable prices, & long-term interest rates.
- Federal Reserve Structure
- Board of Governors
- 7 members appointed by the President
- Appointed for 14 years
- Chairperson - 4 years - (Jerome Powell)
- Federal Reserve Banks- Each bank has 9 members
- Generates income based on Monetary Control Act of 1980
- Interest on government securities
- Priced services to depository institutions
- Returns profits to U.S. Treasury