Chapter 10 & 11
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Transcript of Chapter 10 & 11
CHAPTER 10 & 11
Study Guide
1. WHICH OF THE FOLLOWING IDENTIFIES THAT MONEY HAS DURABILITY?
A. sturdy B. light weight C. recognizable D. similar color
STURDY
2. WHICH OF THE FOLLOWING IS NOT A FUNCTION THAT MONEY PERFORMS? A. medium of exchange Standard of value Recognizable currency Store of value
Recognizable currency
3. IF YOU WANTED MONEY TO HAVE VALUE, WHICH ECONOMIC CHARACTERISTICS IS THAT?
A. stability of value Scarcity Acceptability Uniformity
scarcity
4. WHICH OF THE FOLLOWING BEST IDENTIFIES COMMODITY OF MONEY? A. debit card B. paper money C. check D. gold coin
Gold coin
5. IF YOU GIVE SOMEONE A SHEET OF PAPER PROMISING TO PAY THE AMOUNT OWED, WHAT IS THAT?
a. commodity of moneyb. Representative moneyc. Fiat moneyd. International money
Representative money
6. WHAT MAKES FIAT MONEY ACTUALLY WORTH ITS FACE VALUE? A. government backing B. citizens backing C. gold backing D. silver backing
Government backing
7. ALEXANDER HAMILTON IS BEST KNOWN FOR GIVING THE US WHICH OF THE FOLLOWING? A. Federal Reserve B. FDIC C. First Bank of the US D. Commercial Bank
First bank of the U.S.
8. WHEN THE FEDERAL RESERVE ACT WAS SIGNED, WHAT DID IT CREATE? A. National bank B. Securities and Exchange Commission
C. FDIC D. Federal Reserve
Federal reserve
9. WHY WAS THE FDIC CREATED DURING THE GREAT DEPRESSION? A. create jobs B. insure bank deposits C. regulate bank loans D. help with war effort
Insure bank deposits
10. WHICH OF THE FOLLOWING IS NOT A SERVICE THAT COMMERCIAL BANKS OFFER?
A. checking accounts B. savings accounts C. loans D. currency exchange
Currency Exchanges
11. WHAT AMOUNT DOES THE FDIC INSURE EACH ACCOUNT? A. $50,000 B. $100,000 C. $150,000 D. $250,000
$250,000
12. HOW CAN CUSTOMERS “EARN MONEY” AT A BANK? A. accounts earn interest B. continuous deposits towards accounts
C. bank error on accounts D. customers pay interest
Accounts earn interest
13. WHY WOULD AN INDIVIDUAL TAKE OUT A LIFE INSURANCE POLICY? A. increase net worth B. pay off debts when dead
C. cash it in and purchase a Jaguar
D. tax deduction at the end of the year
Pay off debts when dead
14. WHICH OF THE FOLLOWING IS THE MOST COMMON REASON PEOPLE INVEST THEIR MONEY? A. to purchase a car B. to remodel their home C. to eventually retire D. to hide money from the IRS
To eventually retire
15. WHICH OF THE FOLLOWING IS AN EXAMPLE OF A SHORT TERM INVESTMENT GOAL? A. retirement B. paying off the house C. grandkids college fund D. A vacation to Italy
A vacation to Italy!!!!
16. WHICH OF THE FOLLOWING IS AN EXAMPLE OF A LONG TERM INVESTMENT GOAL? A. remodel the house B. purchasing a new car C. retirement D. Christmas shopping
RETIREMENT
17. WHICH OF THE FOLLOWING INVESTMENTS HAS THE HIGHEST RISK LEVELS?
A. stocks B. savings accounts C. CD’s (not the music kind)
D. mutual funds
Stocks
18. IF THE CITY OF CHICAGO WANTED TO BUILD A NEW PARK, WHICH WOULD THEY ISSUE? A. stocks B. municipal bond C. corporate bond D. mutual funds
Municipal Bond
19. IF NINTENDO DECIDES IT NEEDS TO RAISE REVENUE, IT COULD ISSUE WHICH OF THE FOLLOWING? A. municipal bond B. mutual fund C. Treasury Bill D. corporate bond
Corporate Bond
20. WHEN A CUSTOMER INVESTS IN A CD, WHAT SHOULD THEY CONSIDER FIRST?
A. maturity date B. maximum deposit C. name of CD D. NCUA insured
Maturity Date
21. WHAT IS IT CALLED, WHEN AN INVESTOR MAKES MONEY FROM SELLING HIS/HER STOCK? A. profit B. capital gains C. tax deduction D. net gain
Capital Gains
22. MOST INVESTORS WILL PURCHASE WHICH TYPE OF STOCK? A. preferred B. traditional C. common D. admiral
Common
23. THESE COMPANIES: WMT, HD, F, ARE FOUND ON WHICH STOCK EXCHANGE?
A. AMEX B. NASDAQ C. NYSE D. Chicago Futures Market
NYSE
24. WHAT DOES THE ECONOMIC TERM OVER-THE-COUNTER REFER TO? A. stock traded electronically
B. stock traded by brokers C. stock purchased anywhere
D. stock purchased without prescription
Stock traded electronically
25. WHICH STOCK EXCHANGE IS THE OLDEST AND FOUND IN NYC? A. AMEX B. NASDAQ C. NYSE D. Chicago Futures Market
NYSE
26. WHICH TYPE OF STOCK DOES THE NASDAQ MAINLY DEAL WITH? A. agricultural B. futures C. industrial D. technology
Technology
27. WHEN STOCK PRICES RISE STEADILY OVER TIME, WHAT TYPE OF MARKET IS IT?
A. bear B. bull C. buffalo D. bison
Bull
28. WHICH CRITERIA SHOULD INVESTORS CONSIDER BEFORE PURCHASING A BOND?
A. type of bond B. maturity date C. interest rate D. name of bond
Interest rate
29. WHAT IS THE DOW JONES AND S&P 500? A. corporations B. NASCAR races C. mutual funds D. Stock Indices
Stock indices
30. WHEN STOCK PRICES DECLINE STEADILY OVER TIME, WHAT TYPE OF MARKET IS THIS?
A. bear B. bull C. buffalo D. bison
Bear