Chapter 14 & 15

What is the definition of risk?

• The potential for growth and development

• The likelihood of success and prosperity

• The possibility of gain, benefit, or advantage

• The possibility of loss, damage, or injury

Which type of risk is caused by acts of nature?

• Natural risk

• Neutral risk

• Economic risk

• Market risk

What is the process of evaluating the risk and finding ways to minimize or manage loss called?

• Insurance assessment

• Liability avoidance

• Risk management

• Risk allowance

What is the document that defines the type of losses covered by an insurance policy?

• Insurance deductible

• Insurance claim

• Insurance policy

• Insurance premium

What is the amount the insured is responsible for paying when a claim is made?

• Insurance claim

• Insurance premium

• Insurance policy

• Insurance deductible

What is the exchange of one good or service for another called?

• Barter

• Trade-off

• Banknote

• Money exchange

Which of the following are properties of money?

• Portable

• Durable

• Recognizable

• All of the above

What are the four core functions of the Federal Reserve?

• Manage fiscal policy, regulate international trade, control inflation, oversee stock markets

• Establish monetary policy, supervise and regulate financial institutions, maintain stability, provide financial services

• Set interest rates, manage government spending, control unemployment, regulate consumer protection

• Supervise tax collection, oversee budget allocation, manage public debt, control trade agreements

What is the action taken to manage the supply of money and interest rates in an economy called?

• Financial management

• Economic regulation

• Monetary policy

• Fiscal Function

What is the process of transferring money from one individual or organization to another called?

• Financial transaction

• Monetary exchange

• Funds transfer

• Cash transfer