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Federal Reserve, Stock Market
Test Description: Dona
Instructions: Answer all questions to get your test result.
1) What is the job function of the Federal Reserve
A
Give people Federal time
B
Put people in jail
C
Raise interest rates
D
Raise taxes
2) If the Federal Reserve raises the interest rate consumer credit becomes what
A
cheap
B
equal
C
expensive
D
fewer
3) If the Federal Reserve lowers the interest rate, what happens
A
Consumers buy more expensive goods
B
Consumers do not buy anything
C
Consumers buy inexpensive goods
4) Why do you think conumsers purchase goods on the internet?
A
Do not like going into stores
B
Have more choices
C
Cheaper
D
Customers are rude
5) In the Bear Market stock prices do what
A
stay the same
B
going down
C
Neutral
D
going up
6) In the Bull Market stock prices do what
A
stay the same
B
go up
C
Neutral
D
go down
7) When Wendy's was successful at selling salads in its restaurants, McDonald's started to sell salads, too, This is an example of
A
Self interest and profit motive
B
Freedom of enterprise and choice
C
Competition
D
Private property ownership
8) IN the United States economy, highways, public water systems, and Medicare all all classified as
A
Government provided services
B
Tax benefits or exemptions
C
Services provided by financial institutions
D
Benefits of private enterprise
9) What is an advantage of the market portion of the United States economic systems
A
Business determine what to produce based on demand
B
There is no government regulation of any business
C
Government tells business what to produce based on supply
D
Consumers only purchased what the government allows
10) How does the Federal REserve impact the U.S. economy
A
Raising interest rates will cause consumers to buy less
B
Raising interest rates will cause consumers to buy more
C
Lowering interest rates will cause consumers to invest more money
D
Lowering interest rates will cause consumers to save more money
11) How does the Federal Reserve impact the U.S. economy
A
Circulates more money to stimulate consumer purchasing
B
Raises interest rates to increase employment opportunities
C
Decreases money circulation to help business
D
Raise interest rates to stimulate consumer purchasing
12) How does a bear stock market impact the U.S. economy
A
Consumers will purchase more vaction homes
B
Consumers will purchase more large appliances
C
Americans will invest more money in the stock market
D
Americans will invest less money in the stock market
13) How does a bull stock market impact the U.S. economy?
A
Americans will invest less money in the stock market
B
Consumers will sae more money inthe bank and spend less
C
Consumers will purchase fewer single-family homes
D
Consumers will purchase more lare applicances and cars
14) How does e-commerce impact the U.S. economy
A
Consumers have less variey in the goods they produce
B
Consumers deman only goods porduced in the U.S.
C
Busienss must keep their physical stores open 24-7
D
Business compete with businessess all over the world
15) How does e-commerece impact the U.S. econony
A
Consumers only visit physical storefronts for groceries
B
Business can sell and deliver goods more easily
C
Business increase building rent expenses
D
Consumers wnat fewer goods available online
16) Same question, but think differently.. How does the e-commerece inpact the U.S economy? Look at your answer choices....They are different
A
Consumers refuse to shop in traditional malls
B
Business have very little competition
C
Consumers expect product availability 24-7
D
Business have no need for salespeople
*select an answer for all questions
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