Unit 4: Money, Banking, Finance, Investment

Leng wants to save up for a down payment on car that he plans to buy next year. He should:

The importance of controlling the money supply is to:

Which is gained from switching from  short-term to long term government securities (bonds)?

________ refers to anything that is used to determine value during the exchange of goods

2 units of the same type of money must be the same in terms of what they will buy

A specific type of loan to buy real estate:

The main purpose of the FDIC is to make sure that:

______ refers to a general increase in the prices of most goods and services

What is a prospectus?

_______ is a bond issued by a state or local government.

How does a bank make most of its profit as a business?

_____ is the amount of money that an investor directly invests.

The advantage of the gold standard was that it:

An institution for receiving, keeping, and lending money

________ is the failure to pay back a bank loan.

What is a credit union?

The difference between representative money and fiat money is:

As part of the US recovery from the Great Depression(1930s),the banking system was reformed by:

Mor has a successful career and she wants to begin saving for retirement. To grow her money,she

Generally speaking, the greater the liquidity of an investment, the:

The annual rate of return on a bond that is held to maturity:

A device for pooling the savings of many investors and investing in a variety of ways

Why is a certificate of deposit considered such a safe investment?

_________ refers to the ability to turn an investment into cash

Why would and investor invest in junk bonds?

Generally speaking, the greater the risk an investor has of loosing money, the

Divisibility means that money can be easily divided into:

__________ refers to the amount of money that an investor earns on an initial investment

If you buy a stock for $100 dollars now, and sell it for $125 dollars tomorrow, you have: