Unit 3 Market Structures and Unit 4 Money Econ

money or other valuables belonging to an individual or business

• conglomerate

• sole proprietorship

• liability

• bond

• assets

corporate profits paid out to stockholders

• sole proprietorship

• liability

• bond

• dividend

• conglomerate

legal obligation to pay debts

• partnership

• liability

• sole proprietorship

• conglomerate

• bond

a certificate of ownership in a corporation

• stock

• bond

• liability

• sole proprietorship

• conglomerate

How does a stockholder in a corporation differ from a person who buys a bond from the same corporation?

• A stockholder has ownership and voting rights, while a bondholder is a creditor with fixed interest payments.
• A stockholder can sell their shares at any time, while a bondholder must hold until maturity.
• A stockholder is guaranteed a return on investment, while a bondholder can lose money.
• A stockholder receives fixed dividends, while a bondholder has ownership rights.

Which of the following would not be a practical solution to the U.S. national debt?

• lowering the trade deficit

• print more money

• reduce government spending

• increase taxes

This graph best supports which of the following conclusions?

• More than half of all U.S. foreign debt was held by three countries.

• The majority of U.S. debt was held by foreign countries.

• Brazil held less U.S. foreign debt than any other nation.

• Foreign debt seriously weakens the U.S. economy.

Which of the following is an example of money as a unit of account?

• Purchasing a remote-controlled toy on sale for $8.99

• Lending your best friend $25 to buy a guitar

• Opening a savings account at a bank that pays high interest

• Comparing camera prices at different stores before buying one

The functions of money are

• medium of exchange, unit of account, and store of value.

• medium of exchange, the ability to buy goods and services, and the ability to pay off debts.

• medium of exchange, the ability to buy goods and services, and checking accounts.

• credit cards, checking accounts, currency, and coins.

• store of value, use as a barter mechanism, and unit of account.

Net income is important because it is

• Your total earnings over a specific time period

• How much you spend over a period of time

• Your take-home pay after taxes

• How much you have left after paying your bills