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WorksheetsECON C6 Review
Total questions: 120
Worksheet time: 1hrs 29mins
Which of the following choices is not a function of money?
Standard of Value
Store of Value
Medium of Exchange
Variation in Exchange
Which of the following choices correctly lists the physical properties of money?
Durability, Portability, Divisibility, Uniformity
Portmantility, Dynability, Pacificity, Durability
Portmantility, Divisibility, Uniformity, Dynability
Dynability, Pacificity, Divisibility, Uniformity
How do economists define money?
A small to medium-sized primate that typically has a long tail
Any item or record that is generally recognized as payments for goods
Concerning a large number of an item; concrete or abstract
An instrument or device used for observing, checking, or keeping a continuous record of a process or quantity.
Which of the following choices is not an economic property of money?
Stability of value
Acceptability
Scarcity
Unpredictability
Match each type of money to the best definition.
Has intrinsic value based on the material from which it is made
Commodity Money
Backed by tangible goods (i.e. tied to silver or gold)
Representative Money
Has value only because the government says so
Fiat Money
Who was the United States' first Secretary of the Treasury?
Aaron Burr
Thomas Jefferson
Alexander Hamilton
Benjamin Franklin
Which 1913 act of Congress finally reestablished the National Bank?
Federal Reserve Act
Gibbons Ogden Act
Temporary Authorization Act
Savings and Loan Act
Which act established the FDIC, the Federal Deposit Insurance Corporation, which insures bank deposits to this day?
America for a Brighter Future Act of 1977
Banking Act of 1933
Hamilton Reserve Act of 1812
Federal Reserve Act of 1913
Match each type of bank to the best description.
Privately owned and provides basic banking services
Commercial Bank
Chartered by states to take savings deposits and provide home mortgage loans
Savings and Loan
Member owned and operated
Credit Union
Which of the following is not a function of banks?
Customers can store money
Customers can destroy money
Customers can earn money
Customers can deposit money
Which of the following choices best summarizes the root cause of the 2008 Financial Crisis?
House values increased, leading to an increase in foreclosures
Low evaluations of short term bonds led to the collapse of the housing security market
Banks lowered lending standards to approve large numbers of mortgages
General Motors was unable to take out short term loans
Why does the government require revenue?
To make payments in proportion to benefits
To provide public goods and aid for people in need
To minimize the effect of quantity demanded
To apply taxes uniformly across all demographics
Which choice best describes government revenue?
Government income from tax and non-tax sources
Measure of changes in the prices of goods and services
Rapid, uncontrolled inflation in excess of 50% a month
Total demand rises faster than the production of goods and services
Amount taxed should depend on person’s ability to pay
Benefits-Received Principle
Ability-to-Pay Principle
Which choice is not a criteria for taxation?
Simplicity
Mentality
Equity
Efficiency
On income from all sources
Individual income tax
On corporation’s profits
Corporate income tax
On value of product
Sales tax
On value of assets
Property tax
All taxpayers pay same percentage of income
Proportional Tax
Higher income earners pay higher percentage of income
Progressive Tax
Lower income earners pay higher percentage of income
Regressive Tax
Taxes imposed on unhealthful, damaging products or abilities are known as:
Health taxes
Sin taxes
Steep taxes
Income taxes
What is the largest source of federal income?
Estate Tax
Individual Income Tax
Corporate Income Tax
Social Insurance Tax
Which choice is not a service provided by the Federal Insurance Contributions Act?
Social Security
Medicare
Capital Gains
Unemployment Compensation Insurance
On property transferred to others after owner’s death
Estate Tax
On money or property given by one living person to another
Gift Tax
On production or sale of specific product
Excise Tax
On goods imported from other countries
Customs Duty
Charged for use of good or service
User Fee
Entitlements
Mandatory Spending
Social Security
Mandatory Spending
Defense
Discretionary Spending
Transportation
Discretionary Spending
Which of the following choices contribute to economic growth?
Increasing quantity of technology
Increasing quantity of capital
Increasing quantity of labor
Increasing productivity
All choices contribute to economic growth.
Which choice correctly lists the four factors that contribute to productivity?
Technology and Innovation; Energy Costs; Financial Markets; Exportation
Financial Markets; Exportation; Wage Differentiation; Technology and Innovation
Quality of Labor; Technology and Innovation; Energy Costs; Financial Markets
Energy Costs; Financial Markets; Exportation; Wage Differentiation
How does technology contribute to productivity?
Increases output
Decreases output
Increases input
Levels output
Why would an employer want a healthy, educated, workforce?
They would maintain the same level of productivity as a sick, uneducated workforce
They would be more productive
They would increase the size of the workforce
They would be unable to implement new technologies
Which choice best describes productivity?
Amount of output per amount of output
Amount of input per amount of input
Amount of output per amount of input
Amount of input per amount of output
Real GDP per capita measures (a) .
How do economists calculate GDP per capita? Create the correct formula using the "divided by" symbol.
What is the best measure of a nation's economic growth?
Nominal GDP
Real GDP
Exports minus imports
Trade surpluses and deficits
Match the followingMatch each economic performance measure to the best definition.
Market value of all final goods and services produced by a country
Gross National Product
Value of final goods and services less the value of capital goods that have become worn out
Net National Product
Total income earned by a nation from the production of goods and services
National Income
Income received by a country’s people from all sources
Personal Income
Person's income minus taxes
Disposable Personal Income
Which of the following does GDP measure?
the underground economy
quality of life
non-market activity
the market value of all final goods produced
Match each type of GDP to the best definition.
The formula C+I+G+X represents (a) .
What is the most important measure of national income accounting?
Trade Surpluses
Capital Gains
Trade Deficits
Gross Domestic Product
Which of the following is not an example of local spending?
Public Schools
Welfare
Safety
Federal Highways
What is the function of a tax assessor?
to promote the economic well-being of the nation
to determine the value of property
to attract business to the state
to provide protective services
Which of the following are examples of a state expense? Select all that apply.
Education
Public Safety
Public Welfare
Which situation best represents a balanced budget?
Total income exceeds total spending
Total spending exceeds total income
Total income precedes total spending
Total spending equals total income
Which of the following is not an type of state revenue?
Excise Tax
Income Tax
Sales Tax
Aid Tax
Which of the following is not a method of federal spending?
Fluorine Spending
Transfer Payment
Grant-in-Aid
Direct Spending
What are appropriations?
Social welfare programs with specific requirements
Specific amounts of money set aside for specific purposes
The statistical measures that track the income, spending, and output of a nation
States GDP corrected for changes in prices from year to year
A type of money that is backed by a material, such as gold, is referred to as
certificate money
representative money
fiat money
commodity money
Commodity money can be best described as money that is
backed up by a valuable material
valuable based on the material that the money is made from
used to purchase valuable materials
valuable because a government says it is and people accept that it is valuable
Money in the United States is which type of money?
fiat money
representative money
commodity money
speculative money
The Federal Reserve is ....
made up of 12 district banks and member banks
made up of independent district banks
managed by 12 board of directors
made up of the President's money
____________ is the privately owned, publicly controlled central bank of the U.S.
J.P. Morgan Chase
Bank of America
The Federal Reserve System (FED)
Wells Fargo
_____________ are a paper currency issued by the FED
Specie
Federal Reserve Notes
Disney bucks
Shilling
__________ is a U.S. government institution that provides insurance on depositor's accounts
Congress
Department of the Interior
FDIC
Department of Homeland Security
____________ a system in which currency could be exchanged for a certain amount of gold.
Legal tender
Gold Standard
FDIC
Specie
Which of the following is one of the three functions of money?
scarcity
portability
divisibility
store of value
What are M1 and M2?
fiat money
specie
currency
money supplies
The National Banking-System was created by Congress in _________ to standardize currency and banking practices in the U.S. and issued the first national currency known as the Greenback.
1811
1900
1933
1863
You can easily carry money in a pocket or a purse. This reflects what characteristic of money?
durability
legal tender
divisibility
portability
In the early 1800's, currency in the U.S. was issued by
the FED
Congress
a central bank
banks
Which of the following is a commonly accepted definition of money?
Any good which is commonly uiesd as a store of value
Any good which is exchanged foe gold at a fixed rate.
Any good which is acceptable to a bank
Any good which is commonly accepted as medium of exchange
Money thai is issued by the authority of the government is called-
full bodied money
fait money
fuduciary money
all the above
Institutions such as banks that collect funds from savers that can be loaned to borrowers are known as
financial intermediaries
financial assets
dividends
Credit Unions
A person who buys or sells equities for his or her clients is a
Insurance agent
financial advisor
stockbroker
accountant
The Dow Jones
is an indicator of how the Federal Reserve is doing.
is an average of the top 30 firms on Wall Street in terms of how their stock is doing on a daily basis.
dropped the lowest it ever had, one in one day ever, after Lehman Brothers failed.
is the top company on Wall Street.
The network of savers, investors, financial institutions, and financial assets is known as the
stockbroker
equities market
Credit Union
financial system
Institutions such as banks that collect funds from savers that can be loaned to borrowers are known as
financial intermediaries
financial assets
dividends
Credit Unions
The technique of spreading funds over a large number of investments to reduce the portfolio's overall risk is known as
diversification
mutual funds
bear markets
pension plans
True or False: Stock values change daily.
true
false
A mean market when prices move down for several months or years in a row is known as a
bull market
bear market
_______ formal contract to repay borrowed money and interest on the borrowed money at regular future intervals
equities
savings
bond
futures contract
The rate of return on a corporate, municipal, or government bond is its _______ .
par value
compensation rate
interest rate
coupon rate
income not used for consumption
Investment
Savings
diversification
return
the share of ownership in a corporation that gives holders voting rights and a share of profit.
Common Stock
Preferred Stock
Stock index
primary market
Stock that is paid first and offers no voting rights
common stock
preferred stock
stock exchange
Primary stock
-Nationally Chartered bank members
-President appoints chair
-Board members serve 14 year terms
-12 Districts
Choose the answer the BEST fits the description above.
stock exchange
federal reserve system
treasury department
Washington, D.C
