Free Printable Eagle's Review

1.

Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is Bob’s net pay on his paycheck?

a)

$501.66

b)

$363.32

c)

$576.92

d)

$640.00

2.

In relation to other options, how liquid is a savings account?

a)

More liquid than cash

b)

Less liquid than mutual funds

c)

More liquid than a certificate of deposit

d)

More liquid than a checking account

3.

When a goal has been set to save $100.00 a month for an emergency fund of $2,000.00, giving up food from the vending machine to achieve that goal is the:

a)

opportunity cost.

b)

interest.

c)

specific part of the SMART goal.

d)

trade-off.

4.

One’s lifestyle is to their standard of living as present is to:

a)

past.

b)

recent.

c)

future.

d)

gift.

5.

Andy is developing an Income and Expense Statement. He has gathered all his receipts, bank statements, paycheck stubs, and spending records. He needs to categorize them into income and expenses. He is unsure which items should be recorded as expenses. Which should be recorded as expenses?

a)

Taxes deducted from his paycheck, money saved from his paycheck for emergencies, and his car insurance

b)

Money saved from his paycheck for emergencies, interest paid on his car loan, and his tax refund from filing last year’s tax return

c)

The scholarship he receives for studying Chinese at the local community college, his car insurance payment, and stock dividends he received from his grandmother

d)

Clothing he purchased for a job interview, tuition for a class he is taking at the local community college, and interest from his savings account

6.

Mark and Susan, a recently married couple with full‐time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set?

a)

Short‐term

b)

Intermediate

c)

Long‐term

d)

Unrealistic

7.

Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his first step?

a)

Decide what income and spending categories would reflect his values, needs, and wants.

b)

Decide how much money he can spend for each of the bills he pays each month.

c)

Track his current income and expenses—if he has already created an Income and Expense Statement then he has completed this step.

d)

Develop a control system that will work with his life style.

8.

Kaylee will save her allowance of $25 per month to purchase a $150 MP3 player in six months. This is an example of what type of goal?

a)

Short‐term goal

b)

Long‐term goal

c)

Mid‐term goal

d)

This is not an example of a goal.

9.

When Charles received his college placement test results, he is informed that he will need remediation in math. Which situation is not true of Charles’ situation?

a)

Charles will need to take at least one course because he is not college-ready.

b)

Since the remedial courses Charles must take will not count toward his degree, he needs to take the courses but tuition is not charged.

c)

Charles should have taken a placement test earlier in high school so he could strengthen his academic skills before heading for college.

d)

Remediation courses do not count toward his degree program so he may need to take extra credits and his college degree may take longer to complete.

10.

Perry would like to purchase a new car. What should he consider first in the planned buying process?

a)

Research different sellers to determine where to purchase the car from

b)

Evaluate the opportunity cost and trade-offs to purchasing the car

c)

Rank product features in order of importance

d)

Calculate the cost of ownership

11.

Eric is writing a paper on the importance of investing in yourself and he is looking for a sentence to use as the thesis statement for his paper. Which sentence below would be the best choice?

a)

Completing your college degree is the best way to prepare for a career.

b)

Education pays in higher earnings and lower unemployment rates.

c)

Human capital and transferable skills result from formal training.

d)

Investing in yourself too early can lead to a lower standard of living.

12.

As part of Nicholas’ new job, his employer will provide health, life, and disability insurance. Access to this insurance is provided in addition to his regular salary. This is known as:

a)

government programs.

b)

household production.

c)

coverage.

d)

employee benefits.

13.

Which of the following is likely to have theleast influence on an individual’s values?

a)

Media

b)

Family

c)

Religious affiliations

d)

Grade average

14.

Erica is an active member of the Silver Cord program at her school. Through this program, she commits to completing at least 25 hours of community service each year of high school. Her advisor has encouraged her to explore volunteering with nonprofit organizations. Which would qualify as a nonprofit?

a)

An extracurricular activity in her school

b)

The local private daycare center

c)

Big Brothers/Big Sisters

d)

Her elderly neighbor who needs yard work done

15.

Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective?

a)

Carrying all credit cards in her wallet so they do not get lost

b)

Signing the back of her card with her signature and “Please see picture ID”

c)

Giving account numbers over the Internet rather than over the phone

d)

Using credit cards for all her purchases so she only needs to pay one bill each month

16.

When is your spending plan complete?

a)

When you have allocated all your income into categories for the month

b)

When you have all of your current income and expenses recorded

c)

Spending plans are always under revision so they are never complete.

d)

Spending plans are complete each December 31st as one year ends and another year begins.

17.

In which scenario should renters insurance be considered?

a)

Steve and Teri have purchased a home in a rural area.

b)

Tim and Hanna are living with his parents in the basement of their home for six months while flood damage is being repaired in their home. They are paying his parents rent during the time they are living in their home.

c)

Zach and Leah have rented an apartment in an urban area.

d)

Don and Denise are landlords for several rental properties.

18.

Susan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City’s Cost of Living Index is 100 and Indianapolis’ Cost of Living Index is 125, which is true?

a)

Susan will have more spending power if she moves to Indianapolis.

b)

Susan will have more spending power if she stays in Kansas City.

c)

Susan will have the same spending power in Indianapolis as she has in Kansas City.

d)

There is not enough information to decide.

19.

Jaimen is struggling to make his student loan payments after college. He is considering defaulting on the student loan. Which is not a potential consequence if he decides to default on the student loan?

a)

He could be denied credit cards, car or home loans, or apartment leases.

b)

The bank could refuse to allow him to open a checking account.

c)

He may not be able to obtain a marriage license.

d)

His wages may be garnished.

20.

Dylan is concerned about the safety of the money in his savings account. Which type of depository institution should he choose?

a)

A commercial bank, since his deposits would be insured by the Federal Deposit Insurance Corporation (FDIC)

b)

A credit union, since his deposits would be insured by the National Credit Union Association (NCUA)

c)

He could safely choose either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements.

d)

Neither a commercial bank nor a credit union. Money is most safely kept at home in a personal safe or vault.

21.

Maggie will need to pay $120 per month in order to purchase a health insurance policy. This monthly payment is known as the:

a)

deductible.

b)

co‐insurance.

c)

premium.

d)

moral hazard.

22.

Amber’s academic adviser has asked her to set 3 academic goals for this semester. These goals are most likely to be accomplished if:

a)

Amber discusses her goals with her parents

b)

Amber lets her friends set her goals.

c)

Amber writes her goals down.

d)

Amber thinks about her goals weekly

23.

What is the difference between property and liability insurance?

a)

Property insurance pays for loss to the insured person whereas liability insurance pays for loss to other people.

b)

Property insurance pays for loss to other people whereas liability insurance pays for loss to the insured person.

c)

The difference between property and liability insurance depends on the specific insurance policy purchased.

d)

The difference between property and liability insurance depends on whether automobile, homeowners, or renters insurance is purchased.

24.

Megan’s credit card statement indicates that she is now paying a penalty APR. Which scenario best describes why?

a)

Megan missed making her January and February credit card payments while she was participating in her college’s Study Abroad program when the friend she left in charge of sending the payments in forgot.

b)

Megan’s credit card payment has been paid in full each of the last 6 months.

c)

Megan’s card had a lower introductory interest rate for the first year and now the interest rate has increased, as stated on her contract.

d)

The new computer Megan purchased made her account go over the credit limit for 1 week, until the credit card company processed her credit card statement.

25.

Elliot’s stock broker is suggesting that he consider investing in a diversified portfolio. A diversified portfolio is desirable because it:

a)

increases the risk/return ratio.

b)

limits investor choices to only one or two investment tools.

c)

indicates an investor is a good predictor of the return an investment will have.

d)

decreases risk by investing money in a variety of investment tools.

26.

Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is Bob’s net pay on his paycheck?

a)

$501.66

b)

$363.32

c)

$576.92

d)

$640.00

27.

In relation to other options, how liquid is a savings account?

a)

More liquid than cash

b)

Less liquid than mutual funds

c)

More liquid than a certificate of deposit

d)

More liquid than a checking account

28.

When a goal has been set to save $100.00 a month for an emergency fund of $2,000.00, giving up food from the vending machine to achieve that goal is the:

a)

opportunity cost.

b)

interest.

c)

specific part of the SMART goal.

d)

trade-off.

29.

One’s lifestyle is to their standard of living as present is to:

a)

past.

b)

recent.

c)

future.

d)

gift.

30.

Andy is developing an Income and Expense Statement. He has gathered all his receipts, bank statements, paycheck stubs, and spending records. He needs to categorize them into income and expenses. He is unsure which items should be recorded as expenses. Which should be recorded as expenses?

a)

Taxes deducted from his paycheck, money saved from his paycheck for emergencies, and his car insurance

b)

Money saved from his paycheck for emergencies, interest paid on his car loan, and his tax refund from filing last year’s tax return

c)

The scholarship he receives for studying Chinese at the local community college, his car insurance payment, and stock dividends he received from his grandmother

d)

Clothing he purchased for a job interview, tuition for a class he is taking at the local community college, and interest from his savings account

31.

Mark and Susan, a recently married couple with full‐time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set?

a)

Short‐term

b)

Intermediate

c)

Long‐term

d)

Unrealistic

32.

Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his first step?

a)

Decide what income and spending categories would reflect his values, needs, and wants.

b)

Decide how much money he can spend for each of the bills he pays each month.

c)

Track his current income and expenses—if he has already created an Income and Expense Statement then he has completed this step.

d)

Develop a control system that will work with his life style.

33.

Kaylee will save her allowance of $25 per month to purchase a $150 MP3 player in six months. This is an example of what type of goal?

a)

Short‐term goal

b)

Long‐term goal

c)

Mid‐term goal

d)

This is not an example of a goal.

34.

When Charles received his college placement test results, he is informed that he will need remediation in math. Which situation is not true of Charles’ situation?

a)

Charles will need to take at least one course because he is not college-ready.

b)

Since the remedial courses Charles must take will not count toward his degree, he needs to take the courses but tuition is not charged.

c)

Charles should have taken a placement test earlier in high school so he could strengthen his academic skills before heading for college.

d)

Remediation courses do not count toward his degree program so he may need to take extra credits and his college degree may take longer to complete.

35.

Perry would like to purchase a new car. What should he consider first in the planned buying process?

a)

Research different sellers to determine where to purchase the car from

b)

Evaluate the opportunity cost and trade-offs to purchasing the car

c)

Rank product features in order of importance

d)

Calculate the cost of ownership

36.

Eric is writing a paper on the importance of investing in yourself and he is looking for a sentence to use as the thesis statement for his paper. Which sentence below would be the best choice?

a)

Completing your college degree is the best way to prepare for a career.

b)

Education pays in higher earnings and lower unemployment rates.

c)

Human capital and transferable skills result from formal training.

d)

Investing in yourself too early can lead to a lower standard of living.

37.

As part of Nicholas’ new job, his employer will provide health, life, and disability insurance. Access to this insurance is provided in addition to his regular salary. This is known as:

a)

government programs.

b)

household production.

c)

coverage.

d)

employee benefits.

38.

Which of the following is likely to have theleast influence on an individual’s values?

a)

Media

b)

Family

c)

Religious affiliations

d)

Grade average

39.

Erica is an active member of the Silver Cord program at her school. Through this program, she commits to completing at least 25 hours of community service each year of high school. Her advisor has encouraged her to explore volunteering with nonprofit organizations. Which would qualify as a nonprofit?

a)

An extracurricular activity in her school

b)

The local private daycare center

c)

Big Brothers/Big Sisters

d)

Her elderly neighbor who needs yard work done

40.

Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective?

a)

Carrying all credit cards in her wallet so they do not get lost

b)

Signing the back of her card with her signature and “Please see picture ID”

c)

Giving account numbers over the Internet rather than over the phone

d)

Using credit cards for all her purchases so she only needs to pay one bill each month

41.

When is your spending plan complete?

a)

When you have allocated all your income into categories for the month

b)

When you have all of your current income and expenses recorded

c)

Spending plans are always under revision so they are never complete.

d)

Spending plans are complete each December 31st as one year ends and another year begins.

42.

In which scenario should renters insurance be considered?

a)

Steve and Teri have purchased a home in a rural area.

b)

Tim and Hanna are living with his parents in the basement of their home for six months while flood damage is being repaired in their home. They are paying his parents rent during the time they are living in their home.

c)

Zach and Leah have rented an apartment in an urban area.

d)

Don and Denise are landlords for several rental properties.

43.

Susan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City’s Cost of Living Index is 100 and Indianapolis’ Cost of Living Index is 125, which is true?

a)

Susan will have more spending power if she moves to Indianapolis.

b)

Susan will have more spending power if she stays in Kansas City.

c)

Susan will have the same spending power in Indianapolis as she has in Kansas City.

d)

There is not enough information to decide.

44.

Jaimen is struggling to make his student loan payments after college. He is considering defaulting on the student loan. Which is not a potential consequence if he decides to default on the student loan?

a)

He could be denied credit cards, car or home loans, or apartment leases.

b)

The bank could refuse to allow him to open a checking account.

c)

He may not be able to obtain a marriage license.

d)

His wages may be garnished.

45.

Dylan is concerned about the safety of the money in his savings account. Which type of depository institution should he choose?

a)

A commercial bank, since his deposits would be insured by the Federal Deposit Insurance Corporation (FDIC)

b)

A credit union, since his deposits would be insured by the National Credit Union Association (NCUA)

c)

He could safely choose either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements.

d)

Neither a commercial bank nor a credit union. Money is most safely kept at home in a personal safe or vault.

46.

Maggie will need to pay $120 per month in order to purchase a health insurance policy. This monthly payment is known as the:

a)

deductible.

b)

co‐insurance.

c)

premium.

d)

moral hazard.

47.

Amber’s academic adviser has asked her to set 3 academic goals for this semester. These goals are most likely to be accomplished if:

a)

Amber discusses her goals with her parents

b)

Amber lets her friends set her goals.

c)

Amber writes her goals down.

d)

Amber thinks about her goals weekly

48.

What is the difference between property and liability insurance?

a)

Property insurance pays for loss to the insured person whereas liability insurance pays for loss to other people.

b)

Property insurance pays for loss to other people whereas liability insurance pays for loss to the insured person.

c)

The difference between property and liability insurance depends on the specific insurance policy purchased.

d)

The difference between property and liability insurance depends on whether automobile, homeowners, or renters insurance is purchased.

49.

Megan’s credit card statement indicates that she is now paying a penalty APR. Which scenario best describes why?

a)

Megan missed making her January and February credit card payments while she was participating in her college’s Study Abroad program when the friend she left in charge of sending the payments in forgot.

b)

Megan’s credit card payment has been paid in full each of the last 6 months.

c)

Megan’s card had a lower introductory interest rate for the first year and now the interest rate has increased, as stated on her contract.

d)

The new computer Megan purchased made her account go over the credit limit for 1 week, until the credit card company processed her credit card statement.

50.

Elliot’s stock broker is suggesting that he consider investing in a diversified portfolio. A diversified portfolio is desirable because it:

a)

increases the risk/return ratio.

b)

limits investor choices to only one or two investment tools.

c)

indicates an investor is a good predictor of the return an investment will have.

d)

decreases risk by investing money in a variety of investment tools.

51.

A market structure in which only one producer supplies a good that is in demand, thereby permitting them to set the price by how much they supply, is called

a)

competition.

b)

monopoly.

c)

oligopoly.

d)

conglomerate.

52.

A breakthrough in nanotechnology allows silicon chips for computers to be produced much more quickly and cheaply. If demand for computers remains unchanged, what will be the effect upon market price and supply?

a)

Both price and supply will rise.

b)

Both price and supply will fall.

c)

The supply will rise while the price falls.

d)

The supply will fall while the price rises.

53.

The price at which total supply equals total demand is known as

a)

the middle price.

b)

the consumer price.

c)

consumer demand.

d)

the equilibrium price.

54.

An industry that is dominated by a few large firms is

a)

monopolistic

b)

monopolistically competitive

c)

oligopolistic

d)

perfectly competitive

55.

Even though Bonnie can buy her favorite apple pie at the grocery store for a third of the price, she insists at buying it at a country store. She insists the pies are better and willingly pays the extra money. Thus, the country store sells apple pies for more than the average price. This is largely due to?

a)

the market equilibrium price for apple pies

b)

change in quantity demanded

c)

price controls

d)

economic impact of consumer taste

56.

In this supply & demand schedule, what would happen if the price of the socks was set at $2.50 a pair?

a)

All socks would sell because it would be the equilibrium price.

b)

a shortage.

c)

a surplus.

d)

No socks would be produced because it would be the equilibrium price.

57.

What would happen if producers raised the price to $3.50 a pair?

a)

The socks would be priced at the equilibrium price.

b)

No one would buy socks because they are priced too high.

c)

a surplus.

d)

a shortage.

58.

In a perfect market economy, for what price will the socks be sold?

a)

$1.50

b)

$2.00

c)

$3.00

d)

$4.50

59.

This graph indicates an increase in __________.

a)

Supply

b)

Demand

60.

Equilibrium is the point where supply meets (a) .

61.

According to the Law of Demand, if the price goes up, the demand will _______.

a)

Increase

b)

Decrease

c)

Stay the same

62.

An increase in the price of a complement can lead to a __________ in the demand of the item.

a)

Increase

b)

Decrease

63.

Payments for products follow which 2 lines? (select 2)

a)

Line 1

b)

Line 7

c)

Line 10

d)

Line 4

64.

If household income increases, demand will __________.

a)

Increase

b)

Decrease

65.

Households provide labor in the ________ market and buy goods in the ___________ market.

a)

Factor; Product

b)

Product; Factor

66.

The participants in the product and factor markets are businesses and (a) .

67.

According to the law of supply, if the price increases, the supply will ___________.

a)

Increase

b)

Decrease

68.

Which of the following are the names of the types of economic systems? (Check all that apply)

a)

Traditional

b)

Universal

c)

Command

d)

Market

69.

Which economic system is based on customs and beliefs, people will do the same work as their parents, and the exchange of goods is through bartering (no money)?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

70.

Which economic system does the government make all economic decisions and owns most of the property - it is sometimes called communism?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

71.

Which economic system are all resources privately owned and the buyers and sellers answer the three economic questions?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

72.

Which economic system is both market and command combined and most democratic countries fall into this category?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

73.

A market structure in which only one producer supplies a good that is in demand, thereby permitting them to set the price by how much they supply, is called

a)

competition.

b)

monopoly.

c)

oligopoly.

d)

conglomerate.

74.

A breakthrough in nanotechnology allows silicon chips for computers to be produced much more quickly and cheaply. If demand for computers remains unchanged, what will be the effect upon market price and supply?

a)

Both price and supply will rise.

b)

Both price and supply will fall.

c)

The supply will rise while the price falls.

d)

The supply will fall while the price rises.

75.

The price at which total supply equals total demand is known as

a)

the middle price.

b)

the consumer price.

c)

consumer demand.

d)

the equilibrium price.

76.

An industry that is dominated by a few large firms is

a)

monopolistic

b)

monopolistically competitive

c)

oligopolistic

d)

perfectly competitive

77.

Even though Bonnie can buy her favorite apple pie at the grocery store for a third of the price, she insists at buying it at a country store. She insists the pies are better and willingly pays the extra money. Thus, the country store sells apple pies for more than the average price. This is largely due to?

a)

the market equilibrium price for apple pies

b)

change in quantity demanded

c)

price controls

d)

economic impact of consumer taste

78.

In this supply & demand schedule, what would happen if the price of the socks was set at $2.50 a pair?

a)

All socks would sell because it would be the equilibrium price.

b)

a shortage.

c)

a surplus.

d)

No socks would be produced because it would be the equilibrium price.

79.

What would happen if producers raised the price to $3.50 a pair?

a)

The socks would be priced at the equilibrium price.

b)

No one would buy socks because they are priced too high.

c)

a surplus.

d)

a shortage.

80.

In a perfect market economy, for what price will the socks be sold?

a)

$1.50

b)

$2.00

c)

$3.00

d)

$4.50

81.

This graph indicates an increase in __________.

a)

Supply

b)

Demand

82.

Equilibrium is the point where supply meets (a) .

83.

According to the Law of Demand, if the price goes up, the demand will _______.

a)

Increase

b)

Decrease

c)

Stay the same

84.

An increase in the price of a complement can lead to a __________ in the demand of the item.

a)

Increase

b)

Decrease

85.

Payments for products follow which 2 lines? (select 2)

a)

Line 1

b)

Line 7

c)

Line 10

d)

Line 4

86.

If household income increases, demand will __________.

a)

Increase

b)

Decrease

87.

Households provide labor in the ________ market and buy goods in the ___________ market.

a)

Factor; Product

b)

Product; Factor

88.

The participants in the product and factor markets are businesses and (a) .

89.

According to the law of supply, if the price increases, the supply will ___________.

a)

Increase

b)

Decrease

90.

Which of the following are the names of the types of economic systems? (Check all that apply)

a)

Traditional

b)

Universal

c)

Command

d)

Market

91.

Which economic system is based on customs and beliefs, people will do the same work as their parents, and the exchange of goods is through bartering (no money)?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

92.

Which economic system does the government make all economic decisions and owns most of the property - it is sometimes called communism?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

93.

Which economic system are all resources privately owned and the buyers and sellers answer the three economic questions?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

94.

Which economic system is both market and command combined and most democratic countries fall into this category?

a)

Traditional

b)

Command

c)

Market

d)

Mixed

95.

Which is a final product in a bakery?

a)

Cake

b)

Flour

c)

Eggs

d)

Sugar

96.

Cars, TVs, computers belong in which part of the GDP formula?
GDP = C+I+G+(X-M)

a)

Consumption Expenditures

b)

Investment Expenditures

c)

Government Expenditures

d)

Net Imports

97.

An airline buying a plane belong in which part of the GDP formula?
GDP = C+I+G+(X-M)

a)

Consumption Expenditures

b)

Investment Expenditures

c)

Government Expenditures

d)

Net Imports

98.

Tanks and roads belong in which part of the GDP formula?
GDP = C+I+G+(X-M)

a)

Consumption Expenditures

b)

Investment Expenditures

c)

Government Expenditures

d)

Net Imports

99.

Expectant parents buy supplies for the nursery. Would this be included in GDP?

a)

Yes - Consumer Spending

b)

Yes - Investment

c)

No - Intermediate goods

d)

No - Non-market activity

100.

The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry. Is this included in GDP?

a)

Yes - Consumer spending

b)

Yes - Government Spending

c)

No - Underground Economy

d)

No - Non-market activity

101.

Each individual on food stamps in Delaware can receive up to $194 a month. Is this included in government spending?

a)

Yes - Government spending

b)

Yes - Consumer Spending

c)

No - Intermediate Goods

d)

No - Purely financial Transaction

102.

All of the following are excluded from GDP except

a)

non-market goods and services

b)

used goods

c)

environmental quality

d)

final goods and services

103.

Is this counted in the GDP of the US?

Cars made by a Japanese company in California.

a)

Yes

b)

No

104.

Is this counted in the GDP of the US?

Cars made by a US company in South Korea.

a)

Yes

b)

No

105.

Is this counted in the GDP of the US?

The materials (lumber, cement, bricks) used to build a house.

a)

Yes

b)

No

106.

Is this counted in the GDP of the US?

A new home that was recently built.

a)

Yes

b)

No

107.

Is this counted in the GDP of the US?

A farmer's purchase of a new tractor.

a)

Yes

b)

No

108.

Is this counted in the GDP of the US?

A plumber's purchase of a two-year-old truck from Craigslist.

a)

Yes

b)

No

109.

Is this counted in the GDP of the US?

The services of a mechanic in fixing the radiator on his own car.

a)

Yes

b)

No

110.

Is this counted in the GDP of the US?

Willy's Mexican Grill purchases new fryers for their chips.

a)

Yes

b)

No

111.

Is this counted in the GDP of the US?

The federal government purchases a new submarine for the US Navy.

a)

Yes

b)

No

112.

Is this counted in the GDP of the US?

Your parents ask you to babysit your two younger siblings for the night.

a)

Yes

b)

No

113.

In which part of the GDP calculation does this fit?

You spend $15 at AMC to see the latest Avengers movie.

a)

Consumer spending

b)

Government spending

c)

Investment spending

d)

Net exports

114.

In which part of the GDP calculation does this fit?

The US military spends $5 billion on five new helicopters.

a)

Consumer spending

b)

Government spending

c)

Investment spending

d)

Net exports

115.

In which part of the GDP calculation does this fit?

The local taxi service purchases new vehicles for the

company.

a)

Consumer spending

b)

Government spending

c)

Investment spending

d)

Net exports

116.

In which part of the GDP calculation does this fit?

Australia exported $6 billion worth of goods in 2018, but imported $10 billion in goods.

a)

Consumer spending

b)

Government spending

c)

Investment spending

d)

Net exports

117.

In which part of the GDP calculation does this fit?

You purchase the new iPhone 11.

a)

Consumer spending

b)

Government spending

c)

Investment spending

d)

Net exports

118.

What is a reason to have a savings account at a bank?

a)

To ensure that your money is invested

b)

To keep the economy strong

c)

To improve your chances of a better interest rate

d)

To keep your savings protected and insured

119.

What account is best to gain interest on a large sum of money you do not need access to anytime soon?

a)

Savings

b)

Checking

c)

Certificate of Deposit

d)

Money Management Account

120.

Which account should be used to make regular online payments for bills and expenses?

a)

Savings

b)

Checking

c)

Certificate of Deposit

d)

Money Management Account

121.

What mistake did this account user make?

a)

Too many transactions

b)

Overdrafted account

c)

Wrong account for these actions

d)

Too much money deposited this month

122.

What is one negative of putting your savings into a Certificate of Deposit?

a)

Too much of it is invested

b)

Money does not gain interest

c)

Money can only be used for college tuition

d)

Money cannot be withdrawn without large penalty

123.

What is an issue when using an ATM outside of your bank's network to get cash?

a)

Too hard to find

b)

Too easy to get your account information stolen

c)

Not enough cash can be withdrawn

d)

Fees will be charged per withdrawal

124.

What can be done to avoid overdraft fees when using a bank account?

a)

Online banking apps and alerts

b)

Allowing it to happen, as it cannot be prevented

c)

Setting up a trust with your bank

d)

Opening an MMA, as these do not have overdraft charges attached

125.

How can setting short, medium, and long term financial goals help you save?

a)

Keeps your bills lower

b)

Increases the likelihood of you spending more

c)

Decreases the chances of you being unemployed

d)

Helps focus financial behaviors towards wants and needs

126.

Which of the following is a widely popular savings strategy?

a)

Pay it forward

b)

50/50

c)

Save it first

d)

50/30/20

127.

How does the "pay yourself" savings plan operate?

a)

20% of income is set aside for savings and debt monthly

b)

50% of income is immediately put into an MMA

c)

30% of income is set aside for a Certificate of Deposit

d)

Savings are instantly taken out of paychecks to prevent spending

128.

How can you fulfill a savings plan without interference?

a)

Set up account alerts on fraudulent activity

b)

Create automatic transfers for every deposit

c)

Decline overdraft coverage policies

d)

Dispute any and all pre-planned savings accounts from your bank or credit union

129.

What optional policy is often available to avoid a certain fee on banking activity?

a)

Overdraft protection

b)

Money Management Accounting

c)

Financial advisorship

d)

Fraud alerts

130.

What type of savings account is highly recommended to protect against unexpected expenses?

a)

Money Management Account

b)

401k

c)

Emergency Fund

d)

Certificate of Deposit

131.

What is the main struggle for families living "paycheck to paycheck?"

a)

Unable to build savings

b)

Inability to invest in businesses

c)

Lack of entrepreneurial opportunities

d)

Loss of chances to open bank accounts

132.

What feature of banks in the modern world allows instant access to accounts at anytime?

a)

Online banking apps

b)

Instant transfers with fees

c)

P2P apps

d)

Cashless living

133.

What feature of banking is no longer regularly used in financial world today?

a)

Savings accounts

b)

401k plans

c)

Checks

d)

Cash

134.

What is the main use of P2P apps?

a)

Can be used to send $ to friends

b)

Can be used to send $ for tax payments

c)

Can be used to make monthly bill payments

d)

Can be used for mortgage payments

135.

What is an upside of using a digital wallet compared to physical cash or cards?

a)

Easier to spend money

b)

Quicker access to payment options

c)

Accepted at more merchants worldwide in recent times

d)

Better protected against use after theft

136.

What is one downside of using a digital wallet?

a)

Lack of access to cash

b)

Decreased ability to pay using credit options

c)

Increased chances of fraud or theft

d)

Some businesses are not setup to accept digital wallet payments

137.

What is one possible problem in using P2P apps?

a)

Less protected against mis-payments or fraud

b)

Lack of legitimacy in online shopping

c)

High fees on purchases

d)

Decreased ability to share bills with peers when out

Eagle's Review

Total questions: 137

Worksheet time: 4hrs 2mins

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