CE.12 Review

Select all of the characteristics of a CORPORATION.

• 2 or more owners

• Owner takes all of the risks

• Acts as a legal entity

• Profits are shared

Entrepreneurs are in search of-

• A business structure

• Stock

• Profits

• Creating a new business

What is the best title for this diagram

• Circular flow model

• Business flow model

• Money flow model

• Mixed economy flow model

Which part of the flow diagram uses income to purchase products?

• Government

• Households/ Individuals

• Businesses

How do financial institutions make deposits available to borrowers?

• Make loans

• Encourage saving and investing by paying interest on deposits

• Receive deposits

• Maintaining the value of currency

Technology _______________ the cost of production.

• raises

• lowers

Financial institutions help with the transfer of money between ______.

• savers and borrowers

• businesses and the government

• state and local governments

• you and your family members

What are the two main jobs of private financial institutions?

• Offer loans and print money

• Accept deposits and help consumers

• Accept deposits and offer loans

• Give ATM cards and credit cards

Select all of the financial institutions-

• bank

• credit union

• savings and loan

• federal reserve system

Private financial institutions act as intermediaries between savers and --?

• borrowers

• the government

• taxation

• businesses