Economics and Personal Finance Final Study Guide

Which economic concept refers to the absence of restrictions or barriers on the exchange of goods and services between countries?

• Protectionism

• Free trade

• Import quota

• Embargo

Which of the following are all examples of Trade Barriers?

• Import quota, Subsidies, Embargos

• Tariffs, Comparative Advantage, Monetary Policy

• Comparative Advantage, Fiscal Policy, Monetary Policy

• EU, NAFTA, ASEAN

When a country's currency appreciates, how does it typically affect consumers?

• Decreases purchasing power

• Increases purchasing power

• Does not impact purchasing power

• Decreases inflation rates

A credit score is used to assess an individual's:

• Ability to pay off debt

• Net worth

• Tax liability

• Investment risk tolerance

Which type of investment generally carries the highest level of risk?

• Individually Traded Stocks

• Government Bonds

• Cryptocurrency

• Savings Accounts

How is the primary function of insurance?

• protects against financial loss

• It guarantees investment returns

• It provides tax deductions

• It offers leverage in stock trading

Which type of insurance typically covers funeral costs and estate final expenses?

• Health insurance

• Life insurance

• Homeowner's insurance

• Auto insurance

What is the charge associated with borrowing money from a bank or other lender?

• Dividends

• Principal

• Interest

• Premium

What is the interest rate charged on a loan called?

• Annual percentage rate (APR)

• Principal balance

• Annualized return

• Net worth

Which concept involves creating a plan for managing income and expenses?

• Saving

• Investing

• Budgeting

• Credit Score