Economic Factors

Economic factors include all of these except for

• Currency fluctuations

• Interest rates

• Discriminate spending

• Economic activity

When economic expansion happens..

• Consumer confidence increases

• Companies are more likely to save

• Income levels may drop

• Unemployment is high

What does inflation mean?

• Overall output of all goods and services

• Production, distribution and buying and selling of products and services

• The amount of money people have leftover to spend

• Increase and decrease of prices of goods and services in relation to the value of money

When the economy is contracting,

• central banks will decrease interest rates

• demand for products will increase

• customers will borrow less

• businesses will earn more

Which of these can cause currency to fluctuate?

• Economic speculation

• Improvement in competitiveness

• Purchase price

• Employment rate

As inflation increases every dollar in value increases?

• True
• False

Amelia traveled to Europe with USD 512.

How much did Amelia have in Euros?

• 53529.60

• 645.12

• 497.69

• 399.36

How do banks help businesses?

• making loans

• issuing credit cards

• sharing profits

• issuing insurance

Payment made for the use of borrowed money is called

• Financial Institution

• Creditors

• Interest

• Secured

Something of value that can be claimed by a lender if a loan is not repaid

• Property
• Creditor
• Collateral
• Interest