Economics Topic 6-10 Review

When the stock market rises steadily over time

Money a buyer pays upfront when purchasing an expensive good

A loan when you purchase a house

Normal unemployment rate is about

The spending, taxing, & borrowing policies used by governments to influence the economy

The full amount someone borrows from a lender or bank.

The sum of all government borrowing

This type of unemployment occurs when people take time to find a job.

Which of the following is NOT a characteristic of money?

A secure way to access the equity built up in your home for large expenses

The value of a homeowner's financial interest in their home

Portions of a corporation’s profits, paid out to stockholders

This type of spending is required by current law

The US is on the gold standard.

Which of the following is NOT an entitlement program?

A tax applied uniformly, taking a larger percentage of income from low-income earner that from high-income earners

The interest rate charged to banks when they take loans from the Federal Reserve Bank

Taxes that are imposed by a government on the goods imported by another country

A type of tax that imposes a lower tax rate on low-income earners compared to those with a higher income

This type of money consists of objects that have value in themselves, like cows

An organization that makes and enforces rules for properties & residents

The best return from your investment is most likely

The increase of prices over time

The monetary charge for the privilege of borrowing money.

NAFTA stands for the North American Free Trade Agreement.

The amount of money a government borrows for one year's budget

Mutual funds are a combination of

This type of unemployment occurs when industry workers skills do NOT match those needed for jobs now available

Which of the following is NOT a use of money?

These investments are basically loans that represent debt that the government must repay to an investor.

Which of the following is NOT part of the business cycle?

A prolonged economic contraction, for 2 quarters in a row (6 months)

Revising the terms of an existing credit agreement

This type of money has value because the government says it is acceptable way to pay debts, also known as "legal tender"

The level of access one has to their money

The actions of federal government takes to influence GDP and the rate of inflation

This is earned when a stockholder sells stock for more than s/he paid for it.

This type of spending must be approved by the government each year

The interest on a loan calculated on initial principal and the accumulated interest

The spreading out of investments to reduce risk.

These workers are those who work in jobs that require less skill or training than they have.

When the stock market falls over a period of time