unit 4 econ eoc review. question 1 what is the purpose of the federal deposit insurance corporation...
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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 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
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
Question 2
What is a mortgage used to purchase?
A. carB. college tuitionC. real estateD. business expenses
Question 2
What is a mortgage used to purchase?
A. carB. college tuitionC. real estateD. business expenses
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
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
Question 4
Which of the following is NOT an example of M1 money?
A. currencyB. travelers’ checksC. a mutual fundD. a checking account
Question 4
Which of the following is NOT an example of M1 money?
A. currencyB. travelers’ checksC. a mutual fundD. a checking account
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.
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.
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.
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.
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.
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.
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.
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.
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
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
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
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
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.
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.
Question 12
What term matches the following definition?
coins and paper bills used as money
Question 12
What term matches the following definition?
coins and paper bills used as money
Answer: Currency
Question 13
What term matches the following definition?
the price paid for the use of borrowed money
Question 13
What term matches the following definition?
the price paid for the use of borrowed money
Answer: Interest
Question 14
What term matches the following definition?
a steady drop in the price of stocks over a period of time
Question 14
What term matches the following definition?
a steady drop in the price of stocks over a period of time
Answer: Bear Market
Question 15
What term matches the following definition?
spreading out your investments
Question 15
What term matches the following definition?
spreading out your investments
Answer: Diversification
Question 16
What term matches the following definition?
money pooled from small investors and used to purchase government or corporate bonds
Question 16
What term matches the following definition?
money pooled from small investors and used to purchase government or corporate bonds
Answer: Mutual Fund
Question 17
What term matches the following definition?
a steady rise in the stock market over a period of time
Question 17
What term matches the following definition?
a steady rise in the stock market over a period of time
Answer: Bull Market