Chapter 10 & 11 Review

Question 1

With a 10% reserve ratio...how much would bank one keep with a $10,000 deposit?

Accepted Answer

$1,000

Question 2

Anything that is used to determine value during the exchange of goods and services.

Accepted Answer

Medium of Exchange

Question 3

Which of the following is the most riskiest investment?

Accepted Answer

Stocks

Question 4

Which of the following is the safest investment?

Accepted Answer

Savings account

Question 5

Money has value because the holder can exchange it for something else of value

Accepted Answer

Representative

Question 6

The spreading out of investments to reduce risk

Accepted Answer

Diversification

Question 7

When the stock market rises steadily over time

Accepted Answer

Bull Market

Question 8

An index that shows how stocks of 30 companies in various industries have changed in value

Accepted Answer

DOW Jones Industrial Average

Question 9

What does FDIC stand for?

Accepted Answer

Federal Deposit Insurance Corporation

Question 10

Has value because the government decreed that is an acceptable means to pay debts.

Accepted Answer

Fiat

Question 11

People need to be able to take money with them as they go about their business

Accepted Answer

Portability

Question 12

Something that keeps its value if it is stored rather than used

Accepted Answer

Store of Value

Question 13

When the stock market falls over a period of time

Accepted Answer

Bear Market

Question 14

Which of the following has the highest potential for returns?

Accepted Answer

Stocks

Question 15

Money consists of objects that have value in themselves.

Accepted Answer

Commodity

Questions 15