Federal Reserve, Stock Market Question Preview (ID: 21375)


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What is the job function of the Federal Reserve
a) Raise taxes
b) Put people in jail
c) Raise interest rates
d) Give people Federal time

If the Federal Reserve raises the interest rate consumer credit becomes what
a) expensive
b) cheap
c) equal
d) fewer

If the Federal Reserve lowers the interest rate, what happens
a) Consumers buy inexpensive goods
b) Consumers buy more expensive goods
c) Consumers do not buy anything
d)

Why do you think conumsers purchase goods on the internet?
a) Do not like going into stores
b) Customers are rude
c) Have more choices
d) Cheaper

In the Bear Market stock prices do what
a) stay the same
b) going up
c) going down
d) Neutral

In the Bull Market stock prices do what
a) stay the same
b) go up
c) go down
d) Neutral

When Wendy's was successful at selling salads in its restaurants, McDonald's started to sell salads, too, This is an example of
a) Competition
b) Freedom of enterprise and choice
c) Private property ownership
d) Self interest and profit motive

IN the United States economy, highways, public water systems, and Medicare all all classified as
a) Benefits of private enterprise
b) Government provided services
c) Services provided by financial institutions
d) Tax benefits or exemptions

What is an advantage of the market portion of the United States economic systems
a) Business determine what to produce based on demand
b) Consumers only purchased what the government allows
c) Government tells business what to produce based on supply
d) There is no government regulation of any business

How does the Federal REserve impact the U.S. economy
a) Lowering interest rates will cause consumers to invest more money
b) Lowering interest rates will cause consumers to save more money
c) Raising interest rates will cause consumers to buy less
d) Raising interest rates will cause consumers to buy more

How does the Federal Reserve impact the U.S. economy
a) Circulates more money to stimulate consumer purchasing
b) Decreases money circulation to help business
c) Raises interest rates to increase employment opportunities
d) Raise interest rates to stimulate consumer purchasing

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

How does a bull stock market impact the U.S. economy?
a) Americans will invest less money in the stock market
b) Consumers will purchase more lare applicances and cars
c) Consumers will purchase fewer single-family homes
d) Consumers will sae more money inthe bank and spend less

How does e-commerce impact the U.S. economy
a) Busienss must keep their physical stores open 24-7
b) Business compete with businessess all over the world
c) Consumers deman only goods porduced in the U.S.
d) Consumers have less variey in the goods they produce

How does e-commerece impact the U.S. econony
a) Business increase building rent expenses
b) Consumers only visit physical storefronts for groceries
c) Business can sell and deliver goods more easily
d) Consumers wnat fewer goods available online

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 no need for salespeople
c) Business have very little competition
d) Consumers expect product availability 24-7

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