Economics Unit 3

Front

Which of the following is an example of a barter system? Instead of paying rent, you clean house for the owner.

Back

Instead of paying rent, you clean house for the owner.

Front

What is a mortgage used to purchase? Options: car, real estate, college tuition, business expenses

Back

real estate

Front

What is the largest source of income for banks?

Back

The interest they receive from loans

Front

Salt, cattle, and precious stones have been used in various societies as _________?

Back

Commodity money

Front

All of the following are uses of money except? Store of value, Unit of account, Medium of exchange

Back

Bartering

Front

_______, is the ability to be used as, or directly converted to cash.

Back

Liquidity

Front

Which of the following best describes compound interest? Options: Interest paid on the principal of borrowed money, Interest paid by mortgage lenders, Interest paid on the principal and interest of borrowed money, Interest paid on bank profits

Back

Interest paid on the principal and interest of borrowed money

Front

Which of the following is NOT an example of M1 money? Currency, Travelers checks, Checking account

Back

Mutual Fund

Front

Investment is the act of redirecting resources from being used today so they can create future benefits.

Back

redirecting resources from being used today so they can create future benefits.

Front

A financial system brings together

Back

savers and borrowers.