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Economics: Final Exam Term Review Flashcards | StudBud
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Economics: Final Exam Term Review
Economics: Final Exam Term Review
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Economics Review Terms for the final at Kaneland High School(KHS)
Flashcards
108 cards
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Practice quiz
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Questions
108
Answers
1
A Bull Market is when everything in the Economy is great and unemployment levels are low
True
False
2
Allows debtors to get rid of most of debts & start over but you lose property: "liquidation"
Chapter 21 Bankruptcy
Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
Chapter 11 Bankruptcy
3
A dividend is a part of comp earnings decided by board of directors to a class of shareholders
False
True
4
Wage earner's plan: lets people w regular income to make a plan to pay all or part of debts
Chapter 11 Bankruptcy
Chapter 13 Bankruptcy
Chapter 20 Bankruptcy
Chapter 7 Bankruptcy
5
Income/savings, expenses, left-over money, and records of purchases are elements of a budget
False
True
6
Agency that collects credit info & sells it for a fee to creditors(EquiFax,TransUnion,Experian)
U.S. Treasury
Credit Bureau
Internal Revenue Service(IRS)
U.S. Department of Labor
7
The Federal Government makes the most money through what?
Customs, Excise, Estate, Gift, and Misc Taxes
Borrowing to cover deficit
Corporate Taxes
Personal Income Taxes
8
Travel of money from 1 bank account to another in computer-based system w/o direct intervention
Electronic Funds Transfer(EFT)
Credit Card
Electronic Check
Debit Card
9
When demand goes up so does price
True
False
10
The main difference between fixed and variable loan
Variable loan rate doesn't change but fixed rate does
Fixed loan rate doesn't change whereas variable rate does
There is no difference
11
Majority of state income of government comes from:
Property Tax
Excise Tax
Sales Tax
Income Tax
12
Whole life insurance only provides death benefits
True
False
13
A tax which > % from income of high-income earners is taken
Regressive Tax
Progressive Tax
Flat Tax
Wealthy Tax
14
Investment account with interest, pays > interest savings & provides limited check ability
Certificate of Deposit
Passbook Savings Account
Money Market Account
Checking Account
15
In case of some natural disaster or theft this insurance covers you
Comprehensive Insurance
Collision Insurance
Liability Insurance
Whole Life Insurance
16
Which of the following isn't required when writing a check?
Endorsement
Date
Signature
Memo Line
17
Private mortgage insurance, property tax, homeowner's insurance, are big costs of owning a home
False
True
18
Written by a comp, deducted, but it hasn't cleared account drawn
Post-Dated Check
Outstanding Check
19
Organized & regulated financial market: securities bought & sold at $ driven by demand & supply
Monetary Exchange
Bond Exchange
Financial Exchange
Stock Exchange
20
Special addition to insurance policy that covers a certain loss not covered in standard policy
Rider
None of these
Deductiable
Point
21
How easily you are able to access your money from an account at a financial institution
Liquidity
Rule of 72
Dividened
Diversification
22
Econ decisions & pricing guided by citizens, businesses, & min gov intervention
Market Economy
Command Economy
Traditional Economy
23
Different Parts of a Stock Table
Both right
Both right
24
Gross Domestic Product(GDP) is monetary value of goods made in country w/n certain period
False
True
25
Qualified plan which some workers may make salary deferrals on a post-tax and/or pretax basis
401K
Individual Retirement Account(IRA)
Mutual Fund
26
A stock of a historically successful corperation
Common Stock
Money Market Stock
Blue Chip Stock
27
Can banks loan out 100% of deposits received?
Yes, because the gov reimburse money lost
No, because they have to keep a certain % insecure security
28
Fraud is intentional deception of any entity or person made for personal or monetary gain
False
True
29
Applies same tax rate to every taxpayer and no deductions or tax exemptions allowed
Progressive Tax
Proportional Tax(Flat Tax)
Excise Tax
Regressive Tax
30
Debt investment: an investor loans money to an entity to borrow funds for a defined period
Stocks
Bonds
Portfolio
31
1040 EZ offers easier way to file for young people, have no dependants, <$100,000 tax income
False
True
32
Credit score # used by lenders to guess the likelihood that a person will repay debts
Investment Score
Capital Score
Credit
FICA Score
33
Pay > _% of your net income on debt, you'll have too much debt & difficultly getting a loan
38
48
28
30
34
Capital is the value of what you own
True
False
35
A fraudulent investment based on a hierarchical setup
Fraud
Bait & Switch
Puffery
Pyramid Scheme
36
A person you can claim for credits and/or exemptions on federal and state taxes
Yourself
Dependant
Indepedent
37
Which is true of prefered and common stock?
Common Stock Holders have voting power and prefered don't
Preferred shareholders are paid out 1st
All of the above
Dividends of preferred stocks > than those of common stock
38
Annual rate that's charged for borrowing, shown as a single % represents yearly cost of funds
Annual Percentage Rate(APR)
Tax Rate
Compound intrest rate
Return Rate
39
What's the difference between Complex and Simple Interest?
Compound is interest on top of interest
Simple is interest on top of interest
There is no difference
40
Created to monitor federal unions, runs the National Credit Union Share Insurance Fund
National Monetary Agency(NMA)
National Income and Tax Corperation (NITC)
National Credit Union Administration(NCUA)
Federal Deposit Insurance Corperation(FDIC)
41
A specific amount you subtract from income figure before calculating taxes
Dependant
Gross Income
Net Income
Exemption
42
The person who's paying
Payee
Payer
43
A healthcare plan helps low income people
Medicare
Medicaid
44
Which of the following increase your auto insurance's cost?
Type of Vehicle
Driver Classification
All of the Above
Driving Record
45
Healthcare plan covers those who are 65+ yrs or disabled & using social security for 2 years
Medicare
Medicaid
46
Customs, traditions, & beliefs are rich in developing goods & monetary value is low
Market Economy
Command Economy
Traditional Market
47
Rate at which the general level of prices for goods rises and in turn money's value drops
Scarcity
Fraud
Inflation
48
Covers just the specified parts, certain types of defects, or other conditions
Limited Warranty
Full Warranty
Lifetime Warranty
Implied Warranty
49
Withholding is portion of worker's wages that aren't included on paycheck goes to Fed & State
True
False
50
FDIC- dependent agency of the fed gov, insures deposits by individuals & companies in banks
False
True
51
The second set of numbers following the character symbol immediately on a check
Account Number
Routing Number
Check Number
Memo Line
52
All of the following are good online resources to buying a car EXCEPT:
CarMax
Edmunds
Craig's List
Kelley Blue Book
53
A deductible does effect your auto insurance premium
True
False
54
All EXPECT one are advantages of owning a checking account:
Useful for direct deposit
Insured by the Federal Deposit Insurance Corporation
An excellent way to save money and has high earned intrest
Access to online and banking, ATMs, and debit cards & checks
55
Ads & sales based&on exaggerations & with little or no credible evidence to support its claims
Puffery
Pyramid Scheme
Fraud
Bait & Switch
56
Marketing tactic where a marketer offers a good price but "runs out" when customer comes in
Pyramid Scheme
Puffery
Bait & Switch
Fraud
57
A organization who's not subject to taxation
Tax Exemption
Unified Tax
Non-profit
58
Determines the size and rate of growth of money, which in turn effects interest rates
Monetary Policy
Fiscal Policy
Inflation Policy
Growth Policy
59
All of the following are all examples of advantages of owning a home EXCEPT:
Pride of ownership
Tax benefits
Low living expenses
Lots of space
60
Character measures your financial ability to repay a loan
True
False
61
Local Government makes most money through which tax?
Property Taxes
Gift Taxes
Income Taxes
Sales Tax
62
Which of the following is incorrect in terms of the 100/300/50 Policy?
300- $300,000 limit that'll be paid to all during accident
100- $100,000 limit that'll be paid to 1 person in accident
50- $50,000 limit payment damage of property of others
100- number of senatorial votes for insurance policy to pass
63
Makes it illegal to refuse credit based on discrimination
Anti-Discrimination Act
Truth-In-Lending Act
Equal Opportunity Act
Anti-racism Act
64
Liquidity refers to ease you're able to access funds from a account at a financial instute
False
True
65
Joe hits a telephone pole & he was hurt & car damaged, which insurance isn't used?
Collision
Comprehensive
Property Damage Liability
Medical Payments
66
The main purpose of life insurance is to save for future potential risks
True
False
67
Tax that takes > % of tax rate from low-income people
Progressive Tax
Regressive Tax
Flat Tax
Poverty Tax
68
Scarcity is when there's an overabundance of supplies
False
True
69
Trading up- customer being persuaded to buy more expensive item for some type of incentive
True
False
70
Peak is the best point in econ business cycle where there's low unemployment
True
False
71
All of the following are advantages of renting a home/apartment EXCEPT:
Easy to move
Tax benefits
Low financial commitment
Low maintenance responsibility
72
Gave consumers a way to check their credit reports
Fair Credit Billing Act of 1971
Fair Credit Reporting Act of 1971
Equal Opportunity Act
Truth-In-Lending Act
73
All of these EXCEPT one are terms & conditions directly in an apartment lease
Length of time the lease runs
Who your neighbors are
Landlord
Rules of conduct
74
Employee's tax situation filled out for an employer so they know amount of taxes to withhold
1040 EZ
W-4
1099-INT
W-2
75
Which of the following is the simple interest formula?
Intrest= Principe Interest-Time+Interest Rate
Interest= Principle*Interest Rate*Time
Intrest=Time^2+Principe Intrest+Interest Rate
Intrest= Time/(Principe*Intrest Rate)
76
On a food label, the ingredients appear in which order?
Descending order of subordinance
Descending order of predominance
Ascending order of predominance
Ascending order of subordinance
77
Requires all banks to calculate credit costs the same way so borrowers can compare costs.
Fair Credit Reporting Act of 1971
Truth-In-Lending Act
Fair Credit Billing Act
Equal Opportunity Act
78
What's the difference between a PPO and a HMO?
All of the above
Less Coverage for non-PPO doctors then HMOs
PPO's have free choice of health care providers & HMOs don't
PPO's require more paperwork then HMOs
79
The routing number is the number if your bank account
False
True
80
A recession is when the economy is improving
True
False
81
Terms of repairs or exchanges that will be made if the product doesn't work as described
Contract
Warranty
Insurance
Money back contract
82
An investment tool made of pool of funds of many investors w purpose of investing in securites
Co-op Fund
Mutual Fund
Securities Fund
Investment Funds
83
Independent Federal Agency that's non-profit and exclusive use because you need membership
Corperate Bank
Commercial Bank
Investment Bank
Credit Union
84
In terms of decision making process, study process requires you to evaluate the decision made
False
True
85
US Fed payroll tax imposed on employees & employer to fund Social Security & Medicare
Excise Tax
Estate Tax
Income Tax
FICA Tax
86
An insurance policy where you are at fault for an accident and your insurance has to pay
Term Life Insurance
Collision Insurance
Comprehensive Insurance
Liability Insurance
87
Renter's Insurance protect an individual against damages to the apart itself or to possessions
False
True
88
Employer sends to IRS & employee at year's end & reports employees wages & taxes withheld
W-4
W-6
W-2
1044 EZ
89
Collision insurance covers you in case you get in a car accident
True
False
90
Reconciliation- used to check diff between cash bal in comp's accounting ledger&bank statement
False
True
91
A savings account that receives fixed interest rate, bears maturity date, & has low liquidity
Checking Account
Certificate of Deposit(CD)
Money Market Account
Passbook Savings Account
92
Pays benefit on death of insured and accumulates a cash value because it doesn't expire
Term Life Insurance
Whole Life Insurance
Dental Insurance
Vision Insurance
93
All are true of minimum balance checking accounts EXCEPT:
Convenient access to your personal checking account
Maintain a certain balance monthly or it is closed
Maintain a certain balance monthly or it gets charged a fee
Have at least one qualifying direct deposit of $250 or more
94
Government spending policies that influence macroeconomic conditions
Government Policy
Budget Policy
Fiscal Policy
Monetary Policy
95
What's the greatest cost of owning a new car?
Insurance
Warranty
Depreciation
Maintenance
96
Which of the following isn't part of the decision making process?
Specify: What am I buying?
Search: Plan your search.
Impulse: Buy product because its the newest and greatest.
Sift: Look at all your options
97
The person who's receiving money
Payee
Payer
98
First set of # on the lower left corner of check, consists of 9 # used to locate bank of payee
Checking Account
Check Number
Routing Number
Memo Line
99
What's the difference between a secured and unsecured loan?
On unsecured loan, don't pay interest on loan & do w secured
Neither charge interest on loan
Both Charge interest on loan
On secured loan don't pay interest but on unsecured do
100
In terms of the decision making & process, the selecting process requires you to take action
True
False
101
The premium cost, costs customers a lot to have FDIC insurance
True
False
102
Capacity measures your sense of financial responsibility
False
True
103
There are two different ways to fill out a entry in a check register, which is correct?
Triple Line Entry and Double Line Entry
Don't need to because online statements are always right
Nothing because its not important
Single Line Entry or Double Line Entry
104
Ownership in a corporations is represented by common and preffered stocks
True
False
105
A grace period doesn't allow payment to be received for some time after the real due date
True
False
106
Helps consumers correct credit card billing mistakes.
Equal Opportunity Act
Fair Credit Billing Act
Fair Credit Reporting Act of 1971
Truth-In-Lending
107
Insurance that pays a benefit in event of death of insured during a specified term
Sudden Death Policy
Eternal Life Insurance
Whole Life Insurance
Term Life Insurance
108
An economy in which the gov determines how much, what, and prices of a produced product
Traditional Economy
Market Economy
Command Economy
