3/28 Econ EC

Which is a good synonym for the word barter in the term barter economy?

• trade

• fiat

• specie

• monetary

Which of the following is a basic characteristic of money?

• portability

• durability

• divisibility

• all of these are correct

Gold Standard

• basic unit of currency is equivalent to a specific amount of gold

• A set of criteria used to measure the quality of a product or service

• A type of investment that is considered to be of the highest quality

• A rating system used to evaluate the performance of a company

Federal Deposit Insurance Corporation (FDIC)

• A private banking institution that provides financial services

• A type of loan offered by banks

• the U.S. government institution that provides insurance on deposits

• A type of insurance policy offered by banks

You can easily carry money in a pocket or purse. This reflects what characteristic of money?

• legal tender

• limited supply

• portability

• durabity

Which of the following can COST you money in large interest payments?

• debit card

• credit card

• checking account

• savings account

What is the best explanation for why saving money helps promote economic growth?

• people earn interest on the money they save

• saving helps ensure that companies make payroll

• money saved is money that businesses can borrow to grow

• saving allows the government to contribue to retirement funds

What basic investment strategy are you considereing when you spend $1,000 to buy 100 shares of 10 different stocks rather than spending $1,000 to by 1,000 of a single stock?

• simplicity

• consistency

• diversification

• investment objectives

What are the basic components of a bond?

• maturity

• par value

• coupon rate

• all of these

This is money by decree; it works because the government says it is legal tender and you believe it has purchasing power.

• fiat
• commodity
• securities
• mortgage