Unit 5 Economics quiz
Money that a retired person receives during retirement is known as:
A pension.
The following term describes a stock in a company that reinvests all profits back into the company:
Growth Stock
The Laffer curve purports to demonstrate the following scenario:
High tax rates may reduce total tax revenue.
The following term describes a stock that pays dividends to stockholders:
Income stock.
The following term refers to the time when payment is due to a bondholder:
Maturity.
The following term describes a type of investment that pools money from a variety of smaller investors and invests the money in stocks, bonds, and other investments:
Mutual fund.
A system of exchange where goods or services are directly exchanged for other goods or services without using is known as:
A barter system.
The leader of the Federal Reserve is known as:
The chair
The federal government strives to maintain the following rate of inflation:
1 to 2 percent.
The number of Federal Reserve branch banks is:
12
John Maynard Keyes argued that the following factor determined the level of economic activity:
Aggregate demand.
John Maynard Keynes would best be described as an advocate of:
Demand-side economics.
Economists who believe the government should have little, if any, role in the economy would be described as following:
Classical economics.
The federal funds rate is the interest rate charged by:
Commercial banks making overnight loans to other banks.
A gold coin would be an example of:
Commodity money.
The interest rate that a bond issuer will pay to the bondholder is known as:
Coupon rate.
The assignment of different parts of a manufacturing process or task to different people is known as:
Division of labor.
The multiplier effect can best be described as follows:
Every one dollar change in government spending produces a change greater than one dollar in the national income.
The U.S. dollar today is an example of:
Fiat money.
Supply-side advocates argue that tax rate cuts:
Increase total employment.
The inability to pay one's debts is known as:
Insolvency.
A bank run can best be described as follows:
Panicky depositors who want to take all their money out of a bank.
The following term describes a stock that trades at a low price with few shares offered:
Penny Stock
A stock dividend can best be described as follows:
Portions of company profits paid to stockholders.
Money paid in regular installments for life insurance is known as a:
Premium.
If the Fed raises the discount rate, then commercial banks will likely:
Reduce their borrowing of reserves.
Which of the following duties is NOT performed by the Fed?
Supervising credit unions.
The term "Reaganomics" is often used to describe:
Supply-side economics.
Which of the following would NOT be considered a major role played by money?
Symbol of government power.
The following outcome will occur if the Fed raises the reserve requirement for member banks:
There is less money available for loans.
Which of the following is NOT a function of the Federal Reserve?
To collect taxes from taxpayers.
Which of the following would NOT be a primary duty of the Securities and Exchange Commission?
To exchange stocks and bonds.
Which of the following would NOT be considered a major role played by banks?
To serve as a tax payment center.
The following unemployment rate is considered to be ideal:
Under 5 percent.
The annual rate of return on a bond if it were held to maturity is known as:
Yield
