Economics Unit 3 Study Guide

1. ____ is the act of buyers and sellers freely engaging in market transactions.

• Consumerism
• Capitalism
• Consumer sovereignty
• Voluntary exchange

2. What is the movement to educate buyers and demand better products from manufacturers?

• voluntary exchange
• consumerism
• discretionary income
• capitalism

3. ____ income is the money left over after all the taxes on it have been paid.

• Disposable
• Profit
• Discretionary
• Incentive

4. Which financial institutions offer full banking services to individuals and businesses?

• commercial banks
• credit unions
• savings and loan associations
• central bank

5. The ____ is the federal corporation that insures individual accounts in financial institutions.

• S&L
• FDIC
• FOMC
• Federal Reserve

6. A ____ is something that can be traded for goods and services.

• deposit
• medium of exchange
• loan
• exchange certificate

7. ____ accounts allow bank customers to use debit cards.

• Debit
• Savings
• Checking
• Investment

8. With ____ accounts, banks pay interest to customers based on how much money they have deposited.

• savings
• debit
• checking
• reserve

9. The ____ Act established the Federal Deposit Insurance Corporation.

• Federal Reserve
• Glass-Steagall Banking
• National Banking
• Gramm-Leach-Bliley

10. ____ includes both coins and paper money.

• Certificates
• Reserve
• Monetary policy
• Currency