Basic Economics Quiz

Tamara is the CEO of a company that produces expensive cars. She is applying the theory of supply and demand, and the price is currently high and the demand for her cars is also high. What should her supply be?

• High

• As much as the customers need

• The supply of her company doesn't impact the market

• Low

Samantha has a gross income of roughly $4,500. After she pays taxes and covers all of her bills and rent, she is left with roughly $2,200 each month. She doesn't know what to do with the money and has gone to Janet, a financial adviser, to ask for advice. Which of the following might Janet recommend?

• Save the money

• Set the money aside in a retirement fund

• Invest the money

• All of the answers are correct

Cash is the physical bills and coins, while ______ is/are the actual medium of exchange.

Debit and credit cards, as well as electronic transfers, are forms of _______.

____ is money left after you pay your expenses that is typically used for savings, emergencies, and non-recurring expenses.

Jim is having a discussion with potential investors about his chain of restaurants. He has brought a financial statement which documents his restaurants' income and expenses. He emphasizes that he has made a lot of money so far and that investing in a new restaurant would be a reliable and good idea. Which financial statement did he most likely have to show?

• His 401k

• His financial strategy

• His tax return

• His income statement

John has recently been hired at a large marketing company. His salary is $5,000 each month, but $1,000 will be deducted and deposited into a special fund. When John retires, he will receive monthly payments for the rest of his life. What is this an example of?

• 401k

• Pensions

• Investment fraud

• Budgeting

Why are financial advisors useful?

• Because they help you pay taxes

• Because they can assist you with legal problems in case of bankruptcy

• Because they can provide a customized financial plan to ensure clients meet their financial goals

• Because they assist in making sure a company's mission and vision are integrated within their strategic policies

Barry owns a car worth $17,000. Which of the following BEST describes Barry's car?

• An asset

• A liability

• His net worth

• His cash flow

Which of the following is NOT controlled by monetary policy?

• The tax rate of a particular economy

• None of the answers are correct

• The amount of money which circulates in the economy

• The interest rates of a particular economy