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WorksheetsFHS Eco Unit 4 Test
Total questions: 22
Worksheet time: 16mins
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.
The primary function of money is
the store of value function
the medium of exchange function.
the unit of account function
the savings function.
This can be used in place of money.
Fiat money
Cash
National currency
Trading or bartering
The difference between representative money and fiat money is that
representative money is worth more than fiat money.
fiat money is counted in coins; representative money is counted in paper dollars.
fiat money is more durable than representative money.
representative money is backed by silver or gold, ; fiat money is not.
Eric purchased a movie ticket with his card. This money will come straight out of his checking account. What card did he use?
Debit Card
Credit Card
Both
Barter is inconvenient because
of the necessity of the double coincidence of wants.
large amounts of money are required.
gold is bulky and difficult to transport during day-to-day transactions
because resources are limited.
The Fed is comprised of how many regional central banks
6
10
8
12
Actions taken by the Federal Reserve are called _________ policy.
monetary
rules
Money
governors
Government revenue can include which of the following? (Choose 3)
income taxes
regulatory taxes
excise taxes
property taxes
All government expeditures over a 12 month period is the
Gross Dometic Product
Federal Budget
Who has more influence on the federal budget?
business cycles
president and congress
Actions taken by the Federal Reserve are called _________ policy.
monetary
rules
Money
governors
Tax on sold goods and services are called
excise tax
income tax
sales tax
estate tax
Welfare programs people can benefit from if they qualify
capital budget
personal property
entitlement programs
operating budget
__________ refers to the government's ability to raise taxes and spend the money it raises.
Fiscal Policy
Monetary Policy
Social Policy
The two big-ticket mandatory spending items. These are social security and Medicare, and they are paid for with dedicated __________
federal taxes
federal subsidies
What are the consequences of a high US National debt?
Decreased interest payments, increased economic growth, lower taxes, and potential stagnation.
Decreased interest payments, increased economic growth, lower taxes, and potential recession.
Increased interest payments, reduced economic growth, higher taxes, and potential inflation.
Decreased interest payments, increased economic growth, lower taxes, and potential deflation.
What are the risks of printing more money to stimulate the economy?
Inflation
Increased national debt
Hyperinflation
Currency devaluation
