Intro to Business Concepts

What is the primary role of the Federal Reserve System?

• To regulate international trade

• To control monetary policy and stabilize the economy

• To provide loans to small businesses

• To manage individual bank accounts

Which of the following is a common source of financing for a business venture?

• Personal savings

• Government subsidies

• Crowdfunding

• All of the above

What is the first step in developing a spending/savings plan?

• Setting financial goals

• Spending all available income

• Borrowing money

• Ignoring expenses

What is the primary purpose of a budget?

• To track employee performance

• To plan and control income and expenses

• To increase taxes

• To eliminate savings

When balancing a check register, what should you do after recording a deposit?

• Subtract it from the balance

• Add it to the previous balance

• Ignore it

• Send it to the bank

Which service is typically offered by credit unions but not always by banks?

• Checking accounts

• Lower interest rates on loans for members

• Investment advice

• Online banking

Which of the following is an example of a fixed expense?

• Rent

• Groceries

• Entertainment

• Utility bills

What does a balance sheet show?

• Daily expenses

• Assets, liabilities, and owner’s equity at a specific time

• Annual profits

• Employee salaries

Which investment option is best for long-term growth?

• Savings account

• Stocks

• Certificate of Deposit (CD)

• Cash

Where can you find reliable securities information?

• Social media

• Financial reports and stock exchanges

• Friends

• Advertisements