Study Guide: Final Units Test

Front

The three tools of monetary policy are: (1) changing the required reserve ratio, (2) adjusting the discount rate, and (3)

Back

using open-market operations

Front

Which is an example of debt financing?

Back

bank loan

Front

Which describes a bear market?

Back

when there is a decline or expected decline in stock prices

Front

Which is the purpose of the Securities and Exchange Commission (SEC)?

Back

prevent stock market fraud

Front

Which of the following best describes a dividend? Options: percentage ownership of a corporation, difference between costs and revenues, share of a company's profit paid to each stockholder, increase in a person's investment

Back

share of a company's profit paid to each stockholder

Front

Why is taxation necessary?

Back

provide money for government programs

Front

What is a progressive tax?

Back

a tax that charges more for higher incomes

Front

Who has to approve the budget of the U.S. government?

Back

Congress

Front

Which is an example of a public good? Options: textbooks, food, a waterfall, road building

Back

road building

Front

Which describes the U.S. Postal Service? Options: government agency, government contractor, government corporation, unconnected to the government

Back

government corporation