Paper currency issued by the North during the Civil War

In a fractional reserve banking system banks will

hold a portion of money deposited and lend out the rest

Direct exchange of one set of goods or services for another

A bank is an institution:

for receiving, keeping, and lending money

A steady rise in the stock market over a period of time

A card used to buy goods based on the holder promise to pay

A business that specializes in trading stocks

Money that has value because the government says so

Spreading out investments to reduce risk

High-risk investment with borrowed money hoping big return

The nation’s central banking system

All the money available in the United States economy

Redirecting resources today to create benefits in the future

A collection of financial assets

A financial gain , selling price > purchasing price

A specific type of loan that is used to buy real estate

Objects have value b/c they can be exchanged for goods

Coins and paper bills used as money

The price paid for the use of borrowed money.

A steady drop in the stock market over a period of time

Objects that have value themselves and are used as money

The initial amount of money borrowed

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Economics Unit 4

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Questions 32

Answers

1
All of the following are characteristics of money EXCEPT:
uniformity
durability
accountability
divisibility
2
Greenback
Paper currency issued by the North during the Civil War
Direct exchange of one set of goods or services for another
Coins and paper bills used as money
Spreading out investments to reduce risk
3
In a fractional reserve banking system banks will
lend all money deposited to customers via loans
hold most of money deposited and lend out the remainder
hold all money deposited in the vault
hold a portion of money deposited and lend out the rest
4
Barter
Direct exchange of one set of goods or services for another
High-risk investment with borrowed money hoping big return
A financial gain , selling price > purchasing price
Redirecting resources today to create benefits in the future
5
A bank is an institution:
owned by merchants
that collects taxes for the government
that regulates interstate commerce
for receiving, keeping, and lending money
6
This is the type of money we use in the United States
Commodity
Representative
Monopoly
Fiat
7
Bull Market
The price paid for the use of borrowed money.
A steady rise in the stock market over a period of time
A steady drop in the stock market over a period of time
A business that specializes in trading stocks
8
On average, how many shares must be traded per day in order for a stock to be considered liquid
1 million
50,000
400,000
100,000
9
Credit Card
A business that specializes in trading stocks
A card used to buy goods based on the holder promise to pay
A specific type of loan that is used to buy real estate
A card used to withdraw money
10
Which of the following is a reason for diversification
to eliminate risk
to get the best return
to get the most dividends
to reduce risk
11
Limited supply of currency means that it is
easy to count and measure
accepted by everyone in society
scarce
easily divided
12
Brokerage Firm
Spreading out investments to reduce risk
The price paid for the use of borrowed money.
A business that specializes in trading stocks
A specific type of loan that is used to buy real estate
13
Fiat Money
Objects that have value themselves and are used as money
Money that has value because the government says so
The price paid for the use of borrowed money.
Objects have value b/c they can be exchanged for goods
14
Diversify
Paper currency issued by the North during the Civil War
Coins and paper bills used as money
Direct exchange of one set of goods or services for another
Spreading out investments to reduce risk
15
Speculation
A financial gain , selling price > purchasing price
Redirecting resources today to create benefits in the future
High-risk investment with borrowed money hoping big return
Direct exchange of one set of goods or services for another
16
Federal Reserve
The initial amount of money borrowed
All the money available in the United States economy
A collection of financial assets
The nation’s central banking system
17
Money Supply
All the money available in the United States economy
The initial amount of money borrowed
The nation’s central banking system
A collection of financial assets
18
Investment
A financial gain , selling price > purchasing price
Direct exchange of one set of goods or services for another
Redirecting resources today to create benefits in the future
High-risk investment with borrowed money hoping big return
19
Portfolio
The nation’s central banking system
The initial amount of money borrowed
A collection of financial assets
All the money available in the United States economy
20
Capital Gain
Redirecting resources today to create benefits in the future
High-risk investment with borrowed money hoping big return
A financial gain , selling price > purchasing price
Direct exchange of one set of goods or services for another
21
This is a market for buying and selling stocks, the largest of which is located in New York
stock swap
stock broker
stock exchange
brokerage firm
22
Mortgage
Money the government has ordered that it is acceptable
The ability to be used as, or directly converted to, cash
Coins and paper bills used as money
A specific type of loan that is used to buy real estate
23
Divisibility of currency means that it is
scarce
accepted by everyone in society
easily divided
easy to count and measure
24
Representative Money
The price paid for the use of borrowed money.
Objects have value b/c they can be exchanged for goods
Money that has value because the government says so
Objects that have value themselves and are used as money
25
Debit Card
A business that specializes in trading stocks
A specific type of loan that is used to buy real estate
A card used to buy goods based on the holder promise to pay
A card used to withdraw money
26
Currency
Coins and paper bills used as money
The ability to be used as, or directly converted to, cash
Money the government has ordered that it is acceptable
A specific type of loan that is used to buy real estate
27
Interest
A specific type of loan that is used to buy real estate
The price paid for the use of borrowed money.
A business that specializes in trading stocks
Spreading out investments to reduce risk
28
Assets that have liquidity are
difficult to turn into cash
easy to turn into cash
easy to convert to silver and gold
difficult to borrow or lend
29
Bear Market
A steady drop in the stock market over a period of time
The price paid for the use of borrowed money.
A business that specializes in trading stocks
A steady rise in the stock market over a period of time
30
Uniformity of currency means that it is
easily divided
easy to count and measure
scarce
accepted by everyone in society
31
Commodity Money
Objects have value b/c they can be exchanged for goods
The price paid for the use of borrowed money.
Money that has value because the government says so
Objects that have value themselves and are used as money
32
Principal
The initial amount of money borrowed
All the money available in the United States economy
The nation’s central banking system
A collection of financial assets

Economics Unit 4 Flashcards | StudBud