WorksheetsUnit 4 Review - Econ
Total questions: 15
Worksheet time: 12mins
The market value of a nation's output of final goods and services best defines which term?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Unemployment Rate
Intermediate Goods
Which section of the business cycle is described by a decreasing GDP, unemployment, and lower consumer spending?
Expansion
Peak
Contraction
Trough
Nguyen receives a 3% increase in wages this year. The national inflation rate is 5%. Which of the following is happening to Nguyen?
He has more money to spend and is able to purchase more goods and services.
He has more money to spend, but is able to purchase fewer goods and services.
He has less money to spend, but is able to purchase more goods and services.
He has less money to spend, and is able to purchase fewer goods and services.
An increase in the average level of prices is called...
Contraction
Expansion
GDP
Inflation
The job of the Federal Reserve Bank is to...
Regulate money supply within the economy.
Set and monitor bank reserves.
Supply the economy with paper money.
All of the Above.
Which of the following monetary policy can the Fed take to promote business investment and household consumption? (There are multiple correct answers).
Raise interest rates.
Reduce interest rates.
Raise the reserve requirements.
Reduce the reserve requirements
When a bank is required to hold less money in its reserves, the bank can do what with its excess money?
Create new loans.
Donate to charity.
Print new currecny.
Raise the interest rate.
What happens to the money supply in the Economy when the Fed requires banks to hold more money in reserves?
The money supply decreases.
They money supply increases.
The money supply remains the same.
All of the Above
Which of the following functions must an object have for it to be considered money? (Select all that apply)
It must have a store of value.
It must have be a unit of account.
It must be a medium of exchange.
It must have a method of borrowing
The fact that the U.S. dollar is divisible into quarters, dimes, and nickels best represents its effectiveness in serving which important function of money?
Store of Value
Unit of Account
Medium of Exchange
What is the purpose of a budget?
To make you eat healthier by eliminating spending money on fast food.
To help you make smart choices to reach your financial goals.
To limit your ability to have fun.
Investing allows you to make money on top of your money.
A "Stock" is...
A way to invest money.
A share of a corporation
risky because it may rise or fall in value
All of the above.
What is "Interest" in economics?
The state of wanting to know more about something
One's ability to take out a loan.
A card that allows you to spend money that you don't have
Payments from a borrower to a loaner of an amount above repayment to the original sum.
Which of the following are reasons it is smart to build a good credit score?
Bank's will loan you money to make expensive purchases such as a house or starting a business.
You may receive cash back bonuses.
Higher credit scores may decrease interest rates on loans.
All of the above.
In a "bear" market, you can expect...
Consumer expectations of prices in the market to drop.
Consumer expectations of prices in the market to rise.
Consumers are extremely concerned with protecting animals.
A flat lined market where there is no major increase or decrease in prices.
