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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
Put people in jail
B
Raise taxes
C
Raise interest rates
D
Give people Federal time
2) If the Federal Reserve raises the interest rate consumer credit becomes what
A
fewer
B
expensive
C
cheap
D
equal
3) If the Federal Reserve lowers the interest rate, what happens
A
Consumers do not buy anything
B
Consumers buy more expensive goods
C
Consumers buy inexpensive goods
4) Why do you think conumsers purchase goods on the internet?
A
Have more choices
B
Do not like going into stores
C
Customers are rude
D
Cheaper
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
Neutral
B
go down
C
go up
D
stay the same
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
Private property ownership
C
Freedom of enterprise and choice
D
Competition
8) IN the United States economy, highways, public water systems, and Medicare all all classified as
A
Benefits of private enterprise
B
Tax benefits or exemptions
C
Services provided by financial institutions
D
Government provided services
9) What is an advantage of the market portion of the United States economic systems
A
There is no government regulation of any business
B
Consumers only purchased what the government allows
C
Business determine what to produce based on demand
D
Government tells business what to produce based on supply
10) 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
11) 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
12) How does a bear stock market impact the U.S. economy
A
Consumers will purchase more large appliances
B
Americans will invest less money in the stock market
C
Americans will invest more money in the stock market
D
Consumers will purchase more vaction homes
13) How does a bull stock market impact the U.S. economy?
A
Consumers will purchase more lare applicances and cars
B
Consumers will purchase fewer single-family homes
C
Consumers will sae more money inthe bank and spend less
D
Americans will invest less money in the stock market
14) How does e-commerce impact the U.S. economy
A
Business compete with businessess all over the world
B
Busienss must keep their physical stores open 24-7
C
Consumers have less variey in the goods they produce
D
Consumers deman only goods porduced in the U.S.
15) 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
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
Business have no need for salespeople
B
Consumers expect product availability 24-7
C
Business have very little competition
D
Consumers refuse to shop in traditional malls
*select an answer for all questions
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