Econ: Money and Banking

Dividends paid by corporations are

• taxes on corporate profits
• a portion of after-tax profit paid to shareholders
• interest paid to shareholders on their amount invested
• a portion of after-tax profit reinvested in the firm

Compared to stocks, bonds are generally

• more risky
• less resaleable
• less risky
• more profitable

The federal body that regulates the stock and bond markets is the

• New York Stock Exchange
• Securities and Exchange Commission
• NASDAQ
• Institutional Investors Forum

Before a bank lends money, it usually requires that a borrower put up __, as asset owned by the borrower that can be sold to pay off the loan in the event the loan is not repaid.

• collateral
• consumption
• credit
• interest rate

Has only one function. you can only buy with it. useful for buying things to exchange. Anything which can buy something.

• gold

• barter

• money

• asset

What function of money the picture represent? 

• Medium of Exchange
• Store of Value
• Unit of Account
• Acceptable 

What function of money the picture represents?

• Medium of Exchange
• Store of Value
• Unit of Account
• Durable 

What function of money the picture represents? 

• Medium of Exchange
• Store of Value
• Unit of Account
• Stable 

What is NOT a characteristic of money? 

• Divisible
• Portable
• Acceptable
• Accessible

What characteristic of money the picture represents? 

• Divisible
• Acceptable
• Portable
• Stable