Worksheets2/25 Econ entry quiz
Total questions: 10
Worksheet time: 10mins
One of the functions of money is to act as a measure of value. What does this mean?
Money allows people to borrow and lend.
Money allows people to save their surplus Income.
Money is used to buy goods and services
Money is used to compare the worth of different goods and services
The use of a mobile (cell) phone to make payments is an example of which function of money?
a medium of exchange
a standard of deferred payment
a store of wealth
a unit of account
What is a function of a central bank?
to decide government spending
to determine all interest rates
to issue new currency
to lend to private businesses
What is a function of a commercial bank?
acting as the lender of last resort
deciding what is a legal tender
determining monetary policy
providing overdrafts
Sara works in a local office as a secretary three days a week. She lives with her parents in a small apartment. Lara owns a successful fitness centre that employs about twenty people and lives in a large house. Which is likely to be true?
Sara spends a smaller proportion of her income than Lara.
Sara saves most of her income
Sara would find it easier than Lara to borrow money.
Sara has a lower disposable income than Lara.
What would be most likely to encourage saving?
An increase in the exchange rate
An increase in the goods and services tax rate
An increase in the income tax rate
An increase in the interest rate
Which statement about different income groups is true
High income groups do not need to borrow money.
High income groups save less money than low income groups
Low income groups find it easier to borrow than high income groups
Low income groups save a smaller percentage of their income than high income groups.
Which group is likely to save the largest proportion of its income?
employed workers
retired people
school students
unemployed workers
What will lead to an increase in spending?
an increase in the rate of unemployment
a reduction in the rate of interest
a reduction in expenditure by firms on advertising
an increase in the rate of income tax
A person is keen to repay a large debt owed on his credit card. What is likely to cause that person to reduce the credit Card repayment and spend more from his weekly wage?
A an increase In interest rates
an increase in the vice of essential products
an increase in the range of products available
an increase in weekly earnings
