Economics: Work & Prosperity Test 4 Review Chapters 8-9

What is legal tender that is backed by only a government's promise?

• Fiat money

• Commodity money

• Representative money

• Barter

What does CD stand for?

• Certificate of deposit

• Credit Document

• Cash Dividend

• Current Debt

What did the apostle Paul say was the root of all evil?

• Love of money

• Pride

• Anger

• Jealousy

What is the commitment of resources to a project or purpose that is expected to bring future profit to the investor?

• Investment

• Expenditure

• Donation

• Consumption

What term refers to one who lends money or capital?

• Creditor

• Debtor

• Borrower

• Investor

What principle refers to people hoarding stable forms of money while spending less stable forms?

• Gresham's Law

• Pareto Principle

• Murphy's Law

• Law of Diminishing Returns

What term refers to one who borrows money?

• Debtor

• Creditor

• Investor

• Lender

What corporation created by Congress insures the money in each type of bank account?

• Federal Deposit Insurance Corporation (FDIC)

• Securities and Exchange Commission (SEC)

• Federal Reserve System (Fed)

• National Credit Union Administration (NCUA)

What United States Department is responsible for coining and printing American money?

• Treasury Department

• Department of Commerce

• Department of State

• Department of Justice

What are three key elements that determine how much investments will grow?

• Time, Rate of return, Amount invested

• Location, Age, Occupation

• Weather, Education, Gender

• Color, Shape, Size