![Page 1: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/1.jpg)
Unit 4
Econ EOC Review
![Page 2: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/2.jpg)
Question 1
What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?
A. to make sure that banks do not failB. to make sure that customers do not lose money
if a bank failsC. to make sure that banks charge a fair amount of
interest on loansD. to make sure that the government has enough
gold to cover its expenses
![Page 3: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/3.jpg)
Question 1
What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?
A. to make sure that banks do not failB. to make sure that customers do not lose money
if a bank failsC. to make sure that banks charge a fair amount of
interest on loansD. to make sure that the government has enough
gold to cover its expenses
![Page 4: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/4.jpg)
Question 2
What is a mortgage used to purchase?
A. carB. college tuitionC. real estateD. business expenses
![Page 5: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/5.jpg)
Question 2
What is a mortgage used to purchase?
A. carB. college tuitionC. real estateD. business expenses
![Page 6: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/6.jpg)
Question 3
Why is using coins as money easier than using gold bars?
A. coins are more durableB. coins are more uniformC. coins are more portableD. coins are more limited in supply
![Page 7: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/7.jpg)
Question 3
Why is using coins as money easier than using gold bars?
A. coins are more durableB. coins are more uniformC. coins are more portableD. coins are more limited in supply
![Page 8: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/8.jpg)
Question 4
Which of the following is NOT an example of M1 money?
A. currencyB. travelers’ checksC. a mutual fundD. a checking account
![Page 9: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/9.jpg)
Question 4
Which of the following is NOT an example of M1 money?
A. currencyB. travelers’ checksC. a mutual fundD. a checking account
![Page 10: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/10.jpg)
Question 5
The main advantage of diversification as an investment policy is that it
A. reduces risk to investors.B. increases investors’ access to their money.C. offsets the effects of inflation on investments.D. guarantees a fixed rate of return on an
investment.
![Page 11: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/11.jpg)
Question 5
The main advantage of diversification as an investment policy is that it
A. reduces risk to investors.B. increases investors’ access to their money.C. offsets the effects of inflation on investments.D. guarantees a fixed rate of return on an
investment.
![Page 12: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/12.jpg)
Question 6
Investing in a money market mutual fund is a higher risk than investing in a certificate of deposit because unlike CDs, money market funds
A. are not insured by the FDIC.B. are not protected by the Securities and
Exchange Commission.C. do not earn a fixed interest rate.D. must be held for a preset amount of time.
![Page 13: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/13.jpg)
Question 6
Investing in a money market mutual fund is a higher risk than investing in a certificate of deposit because unlike CDs, money market funds
A. are not insured by the FDIC.B. are not protected by the Securities and
Exchange Commission.C. do not earn a fixed interest rate.D. must be held for a preset amount of time.
![Page 14: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/14.jpg)
Question 7
The Dow Jones Industrial Average consists of
A. 500 different stocks that change annually.B. 30 stocks that are considered representative of
the market as a whole.C. the top-selling 250 stocks over a 10-year
period.D. 60 stocks selected from the NYSE, the
NASDAQ-AMEX, and the OTC market.
![Page 15: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/15.jpg)
Question 7
The Dow Jones Industrial Average consists of
A. 500 different stocks that change annually.B. 30 stocks that are considered representative of
the market as a whole.C. the top-selling 250 stocks over a 10-year
period.D. 60 stocks selected from the NYSE, the
NASDAQ-AMEX, and the OTC market.
![Page 16: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/16.jpg)
Question 8
Investment is
A. providing money for your family.B. the act of redirecting resources from being
consumed today so that they may create benefits in the future.
C. an institution that helps channel funds from savers to borrowers.
D. a collection of financial intermediaries.
![Page 17: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/17.jpg)
Question 8
Investment is
A. providing money for your family.B. the act of redirecting resources from being
consumed today so that they may create benefits in the future.
C. an institution that helps channel funds from savers to borrowers.
D. a collection of financial intermediaries.
![Page 18: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/18.jpg)
Question 9
What is the source of fiat money’s value?
A. it represents the value of another itemB. government decreeC. presidential pardonD. it is equal to the value of the stock market
![Page 19: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/19.jpg)
Question 9
What is the source of fiat money’s value?
A. it represents the value of another itemB. government decreeC. presidential pardonD. it is equal to the value of the stock market
![Page 20: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/20.jpg)
Question 10
The money supply of the United States is made up of which of the following?
(a) M1(b) M1 and parts of M2(c) all the money available in the economy(d) all the money available in the economy plus
money that the country could borrow
![Page 21: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/21.jpg)
Question 10
The money supply of the United States is made up of which of the following?
(a) M1(b) M1 and parts of M2(c) all the money available in the economy(d) all the money available in the economy plus
money that the country could borrow
![Page 22: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/22.jpg)
Question 11
A bond is a
(a) loan that represents debt that the government or a corporation must repay to an investor.
(b) portion of ownership in a corporation.(c) system that allows the transfer of funds
between savers and borrowers.(d) collection of financial assets.
![Page 23: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/23.jpg)
Question 11
A bond is a
(a) loan that represents debt that the government or a corporation must repay to an investor.
(b) portion of ownership in a corporation.(c) system that allows the transfer of funds
between savers and borrowers.(d) collection of financial assets.
![Page 24: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/24.jpg)
Question 12
What term matches the following definition?
coins and paper bills used as money
![Page 25: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/25.jpg)
Question 12
What term matches the following definition?
coins and paper bills used as money
Answer: Currency
![Page 26: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/26.jpg)
Question 13
What term matches the following definition?
the price paid for the use of borrowed money
![Page 27: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/27.jpg)
Question 13
What term matches the following definition?
the price paid for the use of borrowed money
Answer: Interest
![Page 28: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/28.jpg)
Question 14
What term matches the following definition?
a steady drop in the price of stocks over a period of time
![Page 29: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/29.jpg)
Question 14
What term matches the following definition?
a steady drop in the price of stocks over a period of time
Answer: Bear Market
![Page 30: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/30.jpg)
Question 15
What term matches the following definition?
spreading out your investments
![Page 31: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/31.jpg)
Question 15
What term matches the following definition?
spreading out your investments
Answer: Diversification
![Page 32: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/32.jpg)
Question 16
What term matches the following definition?
money pooled from small investors and used to purchase government or corporate bonds
![Page 33: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/33.jpg)
Question 16
What term matches the following definition?
money pooled from small investors and used to purchase government or corporate bonds
Answer: Mutual Fund
![Page 34: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/34.jpg)
Question 17
What term matches the following definition?
a steady rise in the stock market over a period of time
![Page 35: Unit 4 Econ EOC Review. Question 1 What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? A. to make sure that banks do not fail B](https://reader035.vdocument.in/reader035/viewer/2022062511/5519fa2f550346ab0c8b4825/html5/thumbnails/35.jpg)
Question 17
What term matches the following definition?
a steady rise in the stock market over a period of time
Answer: Bull Market