Abeka Economics Chapters 8-9

What is the definition of investment according to the document?

• Commitment of resources to a project or purpose expected to bring future profit

• Spending money on luxury items

• Saving money in a bank account

• Donating money to charity

What are the two main areas improved by investment?

• Marketing and sales

• Research and development

• Human resources and finance

• Customer service and logistics

What is a reward for saving mentioned in the document?

• Interest dividends

• Lottery winnings

• Tax deductions

• Cashback offers

Who is a debtor?

• One who lends money or capital

• One who borrows money or capital

• One who invests in stocks

• One who saves in a bank account

What is the most common type of savings account?

• Checking account

• Money market account

• Certificate of deposit

• Pension plan

What does a money market account allow?

• Unlimited transactions with a fixed interest rate

• Limited transactions with a variable interest rate

• Unlimited transactions with no interest

• Limited transactions with no interest

What does FDIC stand for?

• Federal Deposit Insurance Corporation

• Financial Development and Investment Council

• Federal Debt and Investment Commission

• Financial Deposit and Insurance Company

What is the purpose of insurance according to the document?

• To provide loans to individuals

• To protect against certain types of loss

• To increase savings interest rates

• To offer investment advice

What is a defined benefit plan?

• A plan where employees contribute to their retirement

• A plan where employers promise to pay a certain amount after retirement

• A plan with no guaranteed benefits

• A plan that offers stock options

What is a stockholder?

• A person who lends money to a corporation

• A person who holds stocks

• A person who manages a corporation

• A person who buys bonds