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Econ: Money, Banking, Saving, and Investing Flashcards | StudBud

Explore/Econ: Money, Banking, Saving, and Investing

Why are U.S. dollars considered money?

Using the rule of 72, how long would it take to double your investment at a 4% rate of return?

Econ: Money, Banking, Saving, and Investing

8 terms·StudBud Administration·6 plays

A #economics blind quiz to review the basics of money, banking, and saving.

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Questions 8

Answers

1
Using the rule of 72, how long would it take to double your investment at a 4% rate of return?
36 years
12 years
18 years
2
Why are U.S. dollars considered money?
printed on paper or minted as coins.
value rises and falls with the economy
By law, they must be accepted as a means of payment
3
In general, an investment that has a high risk of loss
has little chance of making a profit.
is insured by the FDIC
has a higher potential reward
4
The definition of M1 includes
investments such as stocks and bonds
currency, checkable deposits, and traveler's checks
credit-card balances and mortgage debts
5
When you use a credit card, you are
promising to pay the store late
making a commercial loan
borrowing money from a bank
6
How does personal saving help the economy grow?
provides funds for business investment
results in individuals spending less
causes manufacturers to lower their prices.
7
The main function of a bank is to bring together
risk and reward
savers and borrowers
cash and currency
8
What is the advantage of investing in a mutual fund compared to buying a single stock?
The government regulates mutual funds, but not stocks
Mutual funds bring higher returns
. Diversification reduces risk