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WorksheetsECON2 First nine weeks makeup quiz
Total questions: 131
Worksheet time: 1hrs 28mins
What is used to measure inflation?
a ruler
CPI Consumer Price Index
a scale
What type of money would this be?
Commodity
Fiat
Representitive
Gold
The more credit cards you have, the higher and better your credit score is?
True
False
The best way for a government to get out of debt is to print more money?
True
False
Which is the least risky investment?
A Stock
A Mutual Fund
Starting your own business
The lower your skill level, the higher your wage?
True
False
Regressive taxes...
Are higher the more you make
Are lower the more you make
are the same for everyone
Which would be the best inflation rate?
-4%
3%
15%
This type of card allows you to withdraw money directly out of your checking account to pay for things...
Credit Card
Debit Card
Gift Card
E-Card
The loan a bank gives you to purchase a house is called a...
Mortgage
Default Loan
Equity Loan
Building Loan
The ____________ guarantees your bank deposits up to $250,000?
Chinese Government
FDIC (Federal Deposit Insurance Corporation)
The President
The Bank
Which is not a Characteristic of Money?
Durability
Portability
Divisibility
Invincibility
A financial action taken today that will create financial benefits in the future?
Portfolio
Maturity
Investment
Buying a Ski Doo
A portfolio is the collection of all of one’s financial assets?
True
False
In financial markets, the period of maturity more than five years of financial instruments is classified as
intermediate term
capital term
short - term
long - term
The markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as
financial instruments
financial asset markets
physical asset markets
easy markets
The 'New York Stock Exchange' is an example of
capital markets
money markets
liquid markets
short - term markets
In which type of financial markets are fresh shares issued and sold?
Money market
Capital market
Primary market
Secondary market
What is the main function of financial market?
Price Determination
Channeling funds
Provides Liquidity to Financial Assets
How many categorizations of financial markets are mentioned in the text?
4
6
8
10
The equity market is _______ .
a financial market where the trading of debt instruments takes place.
a financial market in which shares are issued and traded, either through exchanges or over-the-counter markets.
a financial market where buyers and sellers of securities(or their agents or brokers) meet in one central location to conduct trades.
is a financial market in which long- term debt and equity instruments are traded.
Financial institutions are also known as ________.
Financial organisation
Financial system
Financial intermediaries
All of the above
A person who buys or sells equities for his or her clients is a .....
Insurance agent
financial advisor
accountant
stockbroker
Money market deals in __________.
Short term Securities
Medium-term securities
Long term Securities
None of these
GDP counts the _____ of goods and services produced in a country.
dollar value
quantity amount
quality value
Which of the following products would NOT be counted towards GDP?
A lawn service
A bag of Doritos
Steel used in the production of cars
Concert tickets
Home construction begins November 2019. Construction is completed November 2020. It is sold February 2021. What year will the value of the home be calculated into GDP?
2019
2020
2021
Which of the following statements is false?
If a good is produced in the United States and sold in the United States, it's included in the U.S. GDP.
If a good is produced in the United States and sold in another country, it's included in the U.S. GDP.
If a good is produced in another country, and sold in the United States, it is included in the U.S. GDP.
If a good is produced in another country, and sold in the United States, it is not included in the U.S. GDP.
A series of increasing and decreasing levels of economic activity is known as
natural economic behavior.
Gross Domestic Product.
real GDP.
the business cycle.
Which of the following is NOT a phase in the Business Cycle?
Peak
Expansion
Recession
Boom
Bob gets laid off from work because his job implemented new machines that can do his job more efficiently. This is an example of why type of unemployment?
Structural
Cyclical
Frictional
Seasonal
Adrienne chose to quit her job so she can spend more time at home with her son. Is Adrienne counted in the unemployment rate?
Yes
No
Who is not counted in the labor force?
Mary, who is in the military.
Sue, who just got fired for taking too many sick days.
Joe, who lost his job 6 months ago, but still putting in applications.
Skipper, who works part-time hours, but would rather work full-time.
The difference between real and nominal GDP is
real GDP is the actual dollar value of goods and services, nominal GDP is adjusted for inflation.
nominal GDP is the actual dollar value of goods and services, real GDP is adjusted for inflation.
What usually happens during an economic recession?
more jobs are created
unemployment increases
unemployment decreases
GDP increases
Using the image above, what conclusion can be made?
During a recession, the economy will usually improve.
As the economy declines, unemployment levels increase.
As the economy increases, unemployment increases.
There is no valuable information in this graph.
Who is NOT counted towards the unemployment rate? (Click all who apply)
Hanz retired from the automobile industry.
Franz has been working for an accounting firm for 5 years.
Serg has joined the army.
Rexford is 15 years old and works at Publix.
Clause has not had a job in 2 years, but he has continuously applied for jobs.
What type of unemployment is this? Francis has been laid off because the company he worked for now uses a new software that does his job.
Frictional Unemployment
Structural Unemployment
Cyclical Unemployment
Seasonal Unemployment
What type of unemployment is this? Todd has been hired by Target in November to assist with the increased consumer demand.
Frictional Unemployment
Structural Unemployment
Cyclical Unemployment
Seasonal Unemployment
What type of unemployment is this? Willy quit his job of 30 years to pursue his passion of being a basket weaver.
Frictional Unemployment
Structural Unemployment
Cyclical Unemployment
Seasonal Unemployment
What type of unemployment is this? Covid-19 has resulted in many people to be laid off.
Frictional Unemployment
Structural Unemployment
Cyclical Unemployment
Seasonal Unemployment
The U.S. government determines the consumer price index (CPI) by creating a "market basket" of hundreds of goods and services purchased by…
the typical household.
the typical manufacturer.
the typical individual.
the typical business.
A gradual increase in the overall prices of goods and services produced is called
GDP.
inflation.
hyperinflation.
expansion.
A student records her income and spending for past month, she uses the function of money
Medium of exchange
Standard of deferred payments
Unit of account
Store of value
A saving account in a bank represents the function of money:
Store of value
A medium of exchange
A standard for deferred payments
A measure of value
Choose the most accurate definition of "money".
Money is anything generally accepted in payment for goods or services or in the repayment of debts.
Money is anything recognized in trading and transaction for goods.
Money is legal currency that is released by banks to satisfy the financial needs of the people.
Which of the following is not a medium of exchange?
Easily standardized
Divisible
Quickly become less valuable
Widely rejected
The primary function of money is
the store of value function
the medium of exchange function.
the unit of account function
the savings function.
For which function, money is accepted as a unit of account?
Measure of value,
Medium of exchange
Standard of deferred payment
Store of value
A medium of exchange is_______
something that is generally acceptable in exchange for goods and services
a legally recognized asset that is generally accepted in exchange for goods and services.
something that circulates and provides a standardized means of evaluating the relative price of goods and services.
The ability of money to command purchasing power in the future
Money serves as a unit of account. This means that________
money is a common measure of value
money is a means of calculating relative prices of goods and services.
money is the value in exchange of all goods and services
all of these
What of the following is true? Bank... (4)
is a financial institution
is a financial intermediary
is a private business and is not regulated
connects customers that have capital deficits to customers with capital surpluses
accepts deposits and channels those deposits into lending activities
Which types of banks can you name? (3)
Central bank
Investment bank
Non-profit bank
Commercial bank
Which of the following are the functions of commercial banks (both primary and secondary)? (3)
maintain record of Government revenue and expenditure
determine foreign exchange rates
exchange foreign currencies
receive deposits
give loans
What functions have the merchant (investment) banks? (2)
raise funds for industry on the various financial markets
determine foreign exchange rates
finance international trade
receive deposits
What are the main functions implemented by the Central bank? (4)
It prints the national currency and determines foreign exchange rates
it advises the Government on monetary and credit policies and maintains record of Government revenue and expenditure
offer stockbroking and portfolio management services to rich corporate and individual clients
it decides on the interest rates for bank deposits and bank loans
maintain deposit accounts of all other banks and advances money to other banks, when needed
What differs merchant (investment) bank from commercial one?
Merchant banks work mainly with the government
Merchant banks work mainly with individuals
Merchant banks deal mainly with businesses
Merchant banks deal mainly with commercial banks
What are the main types of deposits? (3)
Current Deposit
Interest Deposit
Fixed deposit
Savings deposit
What is the difference between current and fixed deposit?
Current deposit is only for small sums of money
Fixed deposits can be withdrawn any time, but current deposits can not
Current deposits can be withdrawn any time, but fixed deposits can not
What types of loans do you know? (3)
Savings
Cash credit
overdraft
current
Mortage
What are the primary functions of commercial banks? (2)
accepting deposits
collection of checks
granting loans
foreign exchange
Which of the following are the secondary functions of the commercial banks? (3)
collection of checks
transfer of funds
dealing in foreign exchange
accepting deposits
lending money
What is a minimum interest rate?
This is the discount rate, at which the central bank makes secured loans to government
This is the discount rate, at which the central bank makes secured loans to individuals
This is the discount rate, at which the central bank makes secured loans to business
This is the discount rate, at which the central bank makes secured loans to commercial banks
What is collateral?
Hollywood movie with Tom Cruise
an asset to secure the loan
the board of directors of the central bank
member of bank staff
Who are blue chips?
Very rich bankers
Wealthy government officers
poor people
very safe large companies
Which of the following are services granted by the banks? (3)
Mobile banking
Net-banking
Collateral
ATM
Safeguarding
What are the advantages of keeping money in the bank? (2)
interest
protection of funds
The possibility of withdrawing money anytime with high interest rates
good pension
Why banks make profit? The main source
They collect more interest than they pay to savers
They pay more to savers than they collect
They sell a lot of currency
They render a lot of consult services
What kind of bank does not take or keep the money of individual?
investment (merchant)
commercial
retail
savings
Which of the following are Central banks? (3)
Federal Reserve of the United States
Bank of England
Central Bank of Russia
Barclays
Sberbank
What are the examples of banks?
central bank
commercial (retail) bank
savings and loans banks
development banks
all of them
What was the cause of the global banking crisis in 2008?
Banks gave mortgages without checking financial backgrounds of clients
Banks did not give loans to individuals
Banks did not give loans to business
The collapse of US currency
What year did the first world wide banking crisis emerged?
1929
2008
1998
1914
When output decreases, but prices increase
Stagflation
Inflation
Deflation
Hyperinflation
Factors used by economists to determine where we are in the business cycle
Leading Indicators
Leading Inflation
Capital Deepening
Lorenz Curve
Post-graduation unemployment
Frictional
Structural
Seasonal
Cyclical
Unemployment resulting from a worker's skills no longer being demanded by employers
Structural
Frictional
Seasonal
Cyclical
The opening of investment and trade with foreign companies
Globalization
Market Basket
Income Distribution
Cyclical
Unemployment resulting in certain times of the year
Seasonal
Structural
Frictional
Cyclical
Unemployment during a contraction
Cyclical
Frictional
Seasonal
Structural
The process of increasing one's knowledge
Capital Deepening
Leading Indicators
Core Inflation Rate
Lorenz Curve
Divide the number of unemployed by the labor force
Unemployment Rate
Core Inflation Rate
Deflation Rate
Lorenz Curve
Unemployment due to over-qualification or part time employment
Underemployment
Full Employment
Seasonal
Globalization
A sad able-bodied worker who is no longer searching for employment
Discouraged Worker
Full Employed
Globalization
Poverty Threshold
Our ability to purchase the goods and services we desire
Purchasing Power
Poverty Threshold
Capital Deepening
Leading Indicators
Using the prices for a standard set of items to gauge the level of inflation in a society
Consumer Price Index
Christmas Price Index
Inflation
Core Inflation Rate
Employment absent of cyclical unemployment
Full
Structural
Seasonal
Frictional
Inflation rate that disregards energy and food prices
Core Inflation Rate
Consumer Price Index
Inflation Rate
Deflation Rate
Outrageously high inflation that can exceed 100% each month
Hyperinflation
Deflation
Inflation
Core Inflation
When prices decrease steadily over a period of time
Deflation
Hyperinflation
Inflation
Stagflation
Income level that is unable to provide adequate support for a family
Poverty Threshold
Poverty Rate
Lorenz Curve
Leading Indicators
How salaries and wages are diffused through a society
Income Distribution
Poverty Threshold
Capital Deepening
Core Inflation Rate
A graphical representation of income distribution. It's perfectly straight if everyone earns the same income.
Lorenz Curve
Purchasing Power
Deflation
Globalization
