chapter 10 & 11
DESCRIPTION
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 - PowerPoint PPT PresentationTRANSCRIPT
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CHAPTER 10 & 11
Study Guide
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1. WHICH OF THE FOLLOWING IDENTIFIES THAT MONEY HAS DURABILITY?
A. sturdy B. light weight C. recognizable D. similar color
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STURDY
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2. WHICH OF THE FOLLOWING IS NOT A FUNCTION THAT MONEY PERFORMS? A. medium of exchange Standard of value Recognizable currency Store of value
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Recognizable currency
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3. IF YOU WANTED MONEY TO HAVE VALUE, WHICH ECONOMIC CHARACTERISTICS IS THAT?
A. stability of value Scarcity Acceptability Uniformity
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scarcity
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4. WHICH OF THE FOLLOWING BEST IDENTIFIES COMMODITY OF MONEY? A. debit card B. paper money C. check D. gold coin
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Gold coin
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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
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Representative money
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6. WHAT MAKES FIAT MONEY ACTUALLY WORTH ITS FACE VALUE? A. government backing B. citizens backing C. gold backing D. silver backing
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Government backing
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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
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First bank of the U.S.
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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
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Federal reserve
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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
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Insure bank deposits
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10. WHICH OF THE FOLLOWING IS NOT A SERVICE THAT COMMERCIAL BANKS OFFER?
A. checking accounts B. savings accounts C. loans D. currency exchange
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Currency Exchanges
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11. WHAT AMOUNT DOES THE FDIC INSURE EACH ACCOUNT? A. $50,000 B. $100,000 C. $150,000 D. $250,000
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$250,000
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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
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Accounts earn interest
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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
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Pay off debts when dead
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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
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To eventually retire
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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
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A vacation to Italy!!!!
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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
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RETIREMENT
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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
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Stocks
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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
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Municipal Bond
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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
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Corporate Bond
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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
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Maturity Date
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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
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Capital Gains
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22. MOST INVESTORS WILL PURCHASE WHICH TYPE OF STOCK? A. preferred B. traditional C. common D. admiral
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Common
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23. THESE COMPANIES: WMT, HD, F, ARE FOUND ON WHICH STOCK EXCHANGE?
A. AMEX B. NASDAQ C. NYSE D. Chicago Futures Market
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NYSE
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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
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Stock traded electronically
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25. WHICH STOCK EXCHANGE IS THE OLDEST AND FOUND IN NYC? A. AMEX B. NASDAQ C. NYSE D. Chicago Futures Market
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NYSE
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26. WHICH TYPE OF STOCK DOES THE NASDAQ MAINLY DEAL WITH? A. agricultural B. futures C. industrial D. technology
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Technology
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27. WHEN STOCK PRICES RISE STEADILY OVER TIME, WHAT TYPE OF MARKET IS IT?
A. bear B. bull C. buffalo D. bison
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Bull
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28. WHICH CRITERIA SHOULD INVESTORS CONSIDER BEFORE PURCHASING A BOND?
A. type of bond B. maturity date C. interest rate D. name of bond
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Interest rate
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29. WHAT IS THE DOW JONES AND S&P 500? A. corporations B. NASCAR races C. mutual funds D. Stock Indices
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Stock indices
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30. WHEN STOCK PRICES DECLINE STEADILY OVER TIME, WHAT TYPE OF MARKET IS THIS?
A. bear B. bull C. buffalo D. bison
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Bear