Financial Planning 1 Unit 5 Quiz

What is the definition of exchange rates?

• The rate at which goods and services are exchanged between countries.

• The rate at which stocks and bonds are traded on the stock market.

• The rate at which interest is exchanged between banks.

• The value of one currency in relation to another currency.

What are trade barriers?

• Subsidies for foreign companies

• Free trade agreements

• Taxes on domestic goods

• Government-imposed restrictions on international trade

What is inflation?

• The rate at which the general level of unemployment is rising.

• The rate at which the general level of production of goods and services is rising.

• The rate at which the general level of prices for goods and services is rising.

• The rate at which the general level of prices for goods and services is falling.

What is a recession?

• A period of economic growth

• A period of political stability

• A period of technological advancement

• A period of economic decline

Which of the following is NOT a factor that affects exchange rates?

• B

• C

• D

• A

What is the opposite of inflation?

• Inflationary Spiral

• Deflation

• Expansion

• Stagnation

What is the main goal of financial planning?

• To achieve financial security and stability

• To rely solely on government assistance for financial stability

• To accumulate as much debt as possible

• To spend all available funds immediately

Which of the following is a characteristic of a bear market?

• Increasing stock prices

• Declining stock prices

• High stock prices

• Stable stock prices

What is the primary purpose of monetary policy?

• To control the money supply and interest rates

• To regulate the stock market

• To manage government spending

• To set employment regulations

What does GDP stand for?

• Government Debt Percentage

• Gross Domestic Product

• General Deposit Protocol

• Global Demand Projection