Gr 12 Economics Ch1 Terminology test

the market for long-term financial instruments

• capital market

• money market

• foreign exchange market

• factor market

the market for short-term savings and loans

• capital market

• money market

• foreign exchange market

• factor market

bonds and shares are traded in the

• capital market

• money market

• foreign exchange market

• factor market

the equation GDP = C + I + G + (X-M) represents the GDP calculated according to the

• income approach

• production (value-added) approach

• expenditure approach

• base year approach

the market where both short-term and long-term financial assets are traded

• money market

• capital market

• factor market

• financial market

the market in which one currency can be traded for another, e.g. rands for dollars

• money market

• capital market

• foreign exchange market

• financial market

True or false?

In the circular flow model, investment is a leakage.

• TRUE

• FALSE

True or false?

In the circular flow model, government spending is an injection.

• TRUE

• FALSE

True or false?

In the circular flow model, (spending on) imports is an injection.

• TRUE

• FALSE

True or false?

In the circular flow model, saving is a leakage.

• TRUE

• FALSE