Consumer Economic Final Exam Review

What best defines a group of investments you have, such as CD's, IRA's, Stocks and Bonds?

• Portfolio

• Investment Folder

• Conglomeration

• Prospectus

Mutual Funds are good investments because

• they are managed by a professional

• you are naturally diversified

• you can start one with a modest amount of money

• ALL of the above

If you want low risk but are willing to accept low returns, you are this type of investor...

• Conservative

• Speculative

• Risky

• None of the above

Liquid investment characteristics include:

• Somewhat easy to get your investment back

• Usually low risk

• Appeal to the investor who does not have a lot of money

• All of the above

When you invest in a 401k

• you are utilizing a benefit provided by the company you work for

• your employer may match all or a portion of what you invest

• your investment is made with pretax dollars

• you will be taxed if you withdraw before the age of 59 1/2

  
  

Inflation is can be characterized by

• an overall increase in prices over a period of time

• recessionary conditions

• All of the above

What is the main difference between the Federal Budget Deficit and the Federal Debt?

• The Deficit is yearly overspending while the Debt is accumulated overspending

• The deficit is all the money owed by our government while the Debt is the accumulated money owed yearly

• The Deficit indicates yearly overspending while the Debt is projected overspending

• The Deficit is not the problem in our country; the problem is the National Debt

  
  

The US economic system is a

• Pure Market Economy

• Socialistic Economy

• Mixed Economy

• Command Economy

  
  

Someone who is unemployed is

• not working because they were laid off

• actively looking for a job

• receiving or will receive unemployment benefits from the state

• All of the above

  
  

A company which sets reasonable prices for their products is looking at

• the demand for their product

• pricing by other companies for simliar products

• production costs

• all of the above