Armoni Finish Economics and Finance Quiz

What characteristic of money allows it to be carried easily?

• Durability

• Divisibility

• Portability

• Acceptability

What does fiat money rely on for its value?

• Backing by precious metals

• The government’s declaration

• Scarcity of the resource

• Guarantees from private banks

The reserve requirement set by the Federal Reserve is intended to:

• Increase bank profits

• Ensure banks have funds for withdrawals

• Eliminate all bank failures

• Lower consumer interest rates

Which of these is a role of the Federal Reserve?

• Issuing U.S. Treasury bonds

• Holding reserves for banks

• Collecting federal taxes

• Providing checking accounts to the public

Which institution serves as the central bank of the United States?

• U.S. Treasury Department

• The Federal Reserve

• World Bank

• Federal Deposit Insurance Corporation

What function does the Board of Governors of the Federal Reserve perform?

• Supervising local bank branches

• Setting policies on the money supply and reserve requirements

• Printing paper currency

• Monitoring stock-market activity

What does the personal saving rate measure?

• Percentage of income spent on taxes

• Proportion of income saved by households

• Average household debt level

• Inflation-adjusted wage growth

“Saving for the future” means:

• Spending today to stimulate growth

• Consuming less now to consume more later

• Investing solely in stocks

• Avoiding all forms of credit

What is the main purpose of creating a budget?

• Maximizing interest earned on deposits

• To allocate income toward spending and saving

• Reducing tax liability to zero

• Tracking stock-market performance

Which of the following is NOT typically included in a budget?

• Rent or mortgage payments

• Groceries and utilities

• Entertainment expenses

• Estimated future inheritance