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Econ Unit 4 Review Flashcards | StudBud
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Econ Unit 4 Review
Econ Unit 4 Review
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Flashcards
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Questions
18
Answers
1
Generally speaking, the _______ the length of a CD, the higher the interest rate.
Longer
Shorter
2
“Pay yourself first” means…
Do not volunteer for charities
Reduce your expenses
Request a raise in pay each year
Budget for savings before budgeting for spending
3
The most commonly looked at stock index is...
S&P 500
NASDAQ
Dow
YOLO
4
In general, the higher the
risk
of a particular investment, the higher the potential _______.
Liquidity
Recordkeeping
Reward
Debt
5
Liquidity
refers to...
The point at which ice melts
Expected cash inflows and outflows
The expected profit on an investment
The ability to turn an investment into cash
6
What is the purpose of the FDIC/NCUA?
I like turtles
To make banks give out gold
To make sure that banks don't fail
To ensure customers don't lose their money if a bank fails
7
The Rule of 72 is useful if you want to know…
How soon your money will double
How many times you can invest your money before it runs out
How much interest you will get on your money.
How soon your money will gain $1,000.
8
This animal can be used to describe a stock (or stock market) that is doing poorly.
Bull
Bear
Turtle
Fox
9
The __________ is the organization responsible for insuring your deposits at a commercial bank.
FDIC
IASIP
NCAA
NCUA
10
Refers to expected earnings on an investment.
Liquidity
Return
Volatility
Risk
11
When a company decides that its stock price is “too high”, a smart response would be to...
Tell potential buyers to not buy their stock
Declare a stock split
Stop selling stock
Stop paying dividends
12
When a company goes public for the first time, it is called this: ____________________.
Bull market
IPO
Split
Commission
13
Financial institution that is only open to certain members
Savings and loan asociation
Bank
Credit union
14
In most cases, your deposits at a bank are insured for up to ____________.
$250,000
$100,000
$300,000
No maximum limit
15
Refers to quick, unexpected, unpredictable changes in the value of an investment.
Volatility
Return
Liquidity
Risk
16
When you deposit money into a savings account, you want…
A high interest rate
A low interest rate
17
A bank can charge you a fee if you take your money out of a CD before the full time has passed
True
False
18
When you are borrowing money from a bank, you want…
A low interest rate
A high interest rate
