Econ Unit 4 Set 2 Question Preview (ID: 33177)

a) Money is a unit of account.

b) Money is a medium of exchange.

c) Money serves as a store of value.

d) All of these.

a) savers deposit money that is used to loan money to borrowers.

b) borrowers take money from financial institutions to invest with savers.

c) both savers and borrowers invest in the same markets.

d) the financial institutions offer the same rate of exchange to each.

a) They cannot be cashed in for six months.

b) They are not insured by the federal government.

c) They give lower returns.

d) They are invested in bonds with high failure rates.

a) municipal bond

b) savings bond

c) corporate bond

d) James Bond.

a) high risk = high return, high liquidity = low return

b) high risk = high return, high liquidity = high return

c) high risk = low return, high liquidity = high return

d) high risk = low return, high liquidity = low return

a) Hiring employees of many racial, ethnic, and religious backgrounds to ensure being able to serve all customers.

b) Having a different color outfit for every day of the week.

c) Investing in many different types of assets to protect against loss in any one of them.

d) Studying the Bible closely so you can cite at least two verses to back up any claim you make.

a) More money is invested in stocks and bonds than in savings accounts.

b) M1 is all things that either are currency or can be made currency quickly. This amount is miniscule in comparison.

c) However large M1 gets, M2 will be larger because it includes M1.

d) It isn't.

a) Representative money has value because the government says it does. Commodity money has value only to those who believe it.

b) Representative money is portable, durable, divisible, and acceptable and can be changed for something of value.

c) Representative money exists in unlimited supply, allowing many more people to make use of it.

d) Representative money can be used for things besides currency-gems can be made into jewelry, cotton can be made into cloth...

a) She had to pay principal of $2,327 for the privilege of borrowing the mortgage of $18,000.

b) She had to pay a default of $2,327 for the privilege of borrowing the principal of $18,000.

c) She had to pay interest of $2,327 for the privilege of borrowing the creditor of $18,000.

d) She had to pay interest of $2,327 for the privilege of borrowing the principal of $18,000.

a) they thought national government would do a better job of regulating banks.

b) they wanted a uniform money supply throughout the country.

c) they feared the wealthy would use it to increase their power.

d) they wanted to be able to secure loans with foreign countries.

a) He believed that the nation's banks should be owned and run by state governments.

b) He believed that a strong, centralized banking system was necessary.

c) He believed that the banking system already in existence was sufficient.

d) He believed that an international banking system was best for the country.