WorksheetsEconomic Factors
Total questions: 20
Worksheet time: 15mins
Economic factors include all of these except for
Currency fluctuations
Interest rates
Discriminate spending
Economic activity
When economic expansion happens..
Consumer confidence increases
Companies are more likely to save
Income levels may drop
Unemployment is high
What does inflation mean?
Overall output of all goods and services
Production, distribution and buying and selling of products and services
The amount of money people have leftover to spend
Increase and decrease of prices of goods and services in relation to the value of money
When the economy is contracting,
central banks will decrease interest rates
demand for products will increase
customers will borrow less
businesses will earn more
Which of these can cause currency to fluctuate?
Economic speculation
Improvement in competitiveness
Purchase price
Employment rate
Amelia traveled to Europe with USD 512.
How much did Amelia have in Euros?
53529.60
645.12
497.69
399.36
How do banks help businesses?
making loans
issuing credit cards
sharing profits
issuing insurance
Payment made for the use of borrowed money is called
Financial Institution
Creditors
Interest
Secured
Type of loan that is backed up by something of value.
unsecured
secured
personal loan
debt
Shareholder owned
Credit Union
Merchant bank
Share market
Commercial bank
Not-for-profit financial cooperatives that are typically small and local.
Credit Union
Bank
Share market
Insurance companies
Which of the following is NOT a source of finance.
Family & Friends
Bank Loan
Business Devil
Government Grant
Which of the following is the most suitable reason for using personal finance?
Insufficient internal sources of finance
Insufficient external sources of finance
There is no interest obligation
To please the owners (shareholders) of a company
Businesses might choose to use external sources of finance because
There are no interest charges
Potential cash flow problems are avoided
There is insufficient retained profit
There is an expected rise in interest rates
Which of the following is NOT a source of external financing for a public limited company
Government grants
Debentures
Retained profits
Share capital
Debentures can best be described as a form of
short-term loan with variable interest rates
Medium-term loan with variable interest rates
Long-term loan with a fixed interest rate
Long term security giving the holder part ownership of the business
Venture capital
requires repayment at a fixed date
is used by startups with growth potential
is low risk
is a source of funding from wealthy investors
