CE.12EF Financial Institutions and Global Economy

Virginia and the United States specialize in the production of certain goods and services, which...

• promotes efficiency and growth.

• encourages tax increases.

• promotes competition.

• creates an unstable market.

All of the following are reasons that states and nations trade EXCEPT...

• to obtain goods & services they cannot produce OR cannot produce efficiently themselves

• to eliminate jobs

• to buy goods & services at a lower cost OR opportunity cost

• to sell goods & services to other countries

Select all answers that are TRUE regarding the impact of technological innovations. (Select all answers that apply.)

• Innovations in technology contribute to the global flow of information.

• Innovations in technology contribute to the global flow of capital, goods, and services.

• The use of innovative technology lowers the cost of production.

• The use of innovative technology is harmful to the growth and success businesses.

Why do Virginia and the United States pursue international trade?

• to increase resources

• to increase wealth

• to discourage competition

• to increase unemployment

Private financial institutions help facilitate an exchange of money between ____ and ____.

• goods and services

• businesses and individuals

• savers and borrowers

• corporations and partnerships

Which type of private financial institution is created for members and is non-profit?

• credit union

• bank

• savings and loan

• internet bank

What picture best represents financial capital?

• 
• 
• 
• 

What do financial institutions do with your deposits?

• make loans

• put it in their vault

• place it in other banks for safe keeping

• keep it in security boxes

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

• borrowers

• the government

• taxation

• businesses

Select all of the financial institutions- (choose 2)

• bank

• brokerage firm

• savings and loan

• credit union

• federal reserve system