Economics and Personal Finance Quiz

A source of money that allows individuals to pay for goods and services later is called

• Cash

• Consumer credit

• Currency

• An advantage of this source of money is it can be used for shopping online

Angela deposited her money in a credit union bank. One day, she finds that the bank deposited her paycheck to the wrong account, causing the account to become overdrawn.

Which legal responsibility has Angela's bank failed to uphold?

• The responsibility to keep her money safe

• The responsibility to reach the correct account upon payment

• The responsibility to notify customers regarding the money deposited or withdrawn

• The responsibility to issue an account statement listing all transactions over the past year

Which activity is an economic activity?

• Watching TV

• Reading a book

• Selling vegetables and fruits

• Helping a friend decorate for a party

An advantage of consumer credit as a source of money is ___________________

• it can be used for shopping online

• there are no interest charges

• it leads to good financial habits

Which product is an example of perfect competition?

• food grains where products are homogeneous

• computers, where there are many competitors with slightly differentiated products

• gold where there is only one seller

• aerated cold drinks, where there are two competitors

How does price stability affect social stability?

• Price stability improves social stability by fighting adverse effects of inflation

• Price stability and social stability are not related

• Price stability reduces social stability by decreasing people's wealth

• Price stability has a negative effect as it involves using the wealth of the rich to help the poor

Which act of the financial institutions is prohibited by the Federal Bank?

• To evaluate customers on factors apart from creditworthiness

• To know the customers through know-your-customer rules

• To understand customers' transactions

• To make necessary reports on customers

How do you define the term: foreign exchange rate?

• Value of currency of an importing nation

• Value of one nation's currency in terms of other nation's currency

• Value of currency of an exporting nation

• Rate charged by the commission agent

Complete the sentences regarding demand.

• The demand for inferior goods increases with a decrease in income, whereas public goods are goods that cannot be bought or sold

• The demand for inferior goods increases with a decrease in income, whereas private goods are goods that cannot be bought or sold

• The demand for consumer goods increases with a decrease in income, whereas normal goods are goods that cannot be bought or sold

• The demand for consumer goods increases with an increase in income, whereas normal goods are goods that can be bought or sold

At what wage level there will be no unemployment or labor shortages in the labor market?

• $30

• $25

• $20

• $15