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Economics Unit 4 Flashcards | StudBud
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Economics Unit 4
Economics Unit 4
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1
A widespread panic in which many people try to redeem their paper money at the same time
Bank run
Greenback
Bankruptcy
Gold standard
2
Why did President Andrew Jackson oppose the second bank of the United States
He wanted to repay debts in the revolutionary war
He wanted to issue greenbacks as currency
He thought it favorite the rich and powerful
He thought smaller, state chartered banks were careless
3
what is a prospectus
a pull money from various investors
A report for an individual's investments
A collection of financial assets
Report for possible investors
4
What does a mutual fund do
Invest the savings of many investors
Borrows money to lend to its members
Makes loans to banks
insures companies
5
Which of these is the most risky for Investors
Treasury bonds
Municipal bonds
Corporate bonds
Savings bonds
6
One outcome of the stock markets great crash in 1929 that lasted more than 50 years
Money is hard to borrow
Millions of people were out of work
affected millions of people who were not investors
Ordinary people were afraid to invest in the stock market
7
A bond that protects the investor against inflation by its linkage to an index of inflation
Inflation indexed bond
Bank bond
Junk bond
Corporate bond
8
Objects that have value in and of themselves and that are also used as money
Fiat money
Representative money
Specie
Commodity money
9
A bond issued by a state or local government or a multicipality to finance a public project
Junk bond
James Bond
Corporate bond
Municipal bond
10
In the early years the United States, the Federalist favored
The use of banks to limit trade
Repeal of the gold standard
A centralized banking system
Fake control of their own banks
11
Objects that have value because government has decreed that they are means to pay debt
Commodity money
Representative money
Specie
Fiat money
12
What happens during a bank run
The federal government orders all thanks to close
The price of gold specie increases
State charter more banks then their citizens need
Customers withdraw more money than the bank has on hand
13
When the company makes a profit, what happens to the company stock price
Ghost town
Goes in the same direction as the stock market
Goes up
Stays the same
14
Coins are easier to use than gold bars as money because coins are more
Uniform
Portable
Durable
Limited
15
Which of the following is an example of demand deposits
Money in a mutual fund
Money in a checking account
Credit cards
Travelers checks
16
A steady rise in the stock market over a period of time
Bank market
Trade market
Bear market
Bull market
17
a steady drop or stagnation in the stock market over a period of time
Trade market
Bank market
Bull market
Bear market
18
What happens after you put money in a bank
The banks stores the money until you want it back
The bank invest the money in the stock market
The bank uses the money to create new products
The bank lends the money to a borrower
19
Why would commodity money be hard to use in most societies
It cannot be used to pay taxes
It is not backed by the government
It is not valuable in and of itself
It is often not portable, durable, or divisible
20
Spreading ur money into different businesses, what do you invest in
A stock
Credit unions
A finance company
A mutual fund
21
What is gained and lost when switching from the short-term to long-term CD
gained: interest; lost: liquidity
Gained: liquidity; lost: interest
gained: return; lost: risk
Gained: risk; lost : return
22
Which of the following is an example of representative money
And IOU note
Diamonds
Gold earrings
A fur coat
23
Which are financial Intermediaries
banks, savings and loan associations, credit union
buyers, savers, stock exchanges
Bondholders, investors, traders
Stockbrokers, broker firms, speculators
24
A stock split is most likely to occur when
Stockholders demand higher Divideds
The price of a stock becomes too high
A company is losing money
The stock market as a whole is doing poorly
25
A bond issued by a corporation to help raise money for expansion
Municipal bond
Junk bond
Fiat bond
Corporate bond
