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Economic Institutions Quiz Flashcards | StudBud

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Why are banks important to producers?

What is a major risk of using a financial institution?

Economic Institutions Quiz

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Questions 7

Answers

1
What is a major risk of using a financial institution?
Investors can be unable to withdraw money when they need it.
Insurance will not cover any losses incurred by a financial institution.
The financial institution may fail entirely
Financial institutions may choose not to pay investors back.
2
Why are banks important to producers?
Savings accounts allow a way to make interest off profits.
Bank loans allow more people to buy products and homes.
Credit cards give producers low-interest loans of small amounts.
Checking accounts give a way to take payments from customers.
3
What is achieved when supply meets demand?
market price
equilibrium price
relative price
quantity price
4
How do labor unions affect the economy?
They decrease demand by opposing low prices.
They increase demand by ensuring ethical production.
They increase supply by keeping workers healthy.
They decrease supply by increasing worker wages.
5
Specialization most helps producers by growing what?
consumer demand
levels of trade
labor productivity
prices of goods
6
Which type of economic institution works to provide services to a community and does not pay taxes?
non-profit
market
labor union
bank
7
How do personal savings contribute to the economy?
They increase the amount of money banks can invest in stocks and bonds.
Allow consumers to get advice from banks on how to keep track of their mone
They allow consumers to invest in different areas of the economy.
They increase the amount of money banks can loan to individuals and busines