XxXprincessXxX asked:


you dont have to give me answers, just explain and help me eliminate answers. PLEAE HELP ME 10 PTS FOR FIRST ANSWER THATS NOT STUPID!!!!!!!!!!!!!!!

1. Which of the following is an example of the barter system? (1 point)
Instead of paying rent, you clean the house for the owner.
Instead of paying cash for a computer, you use a credit card.
Instead of paying the full amount for a car, you pay 10 percent in cash and pay for the rest in monthly installments.
Instead of paying for a purchase in Mexico in pesos, you use dollars from the United States.
2. What is the purpose of the Federal Deposit Insurance Corporation (FDIC)? (1 point)
to make sure that banks do not fail
to make sure that customers do not lose money if a bank fails
to make sure that banks charge a fair amount of interest on loans
to make sure that the government has enough gold to cover its expenses
3. What did the Federalists believe about banking? (1 point)
They believed that they banking system already in existence was sufficient.
They believed an international banking system would be best.
They believed that a centralized banking system was necessary.
They believed that state governments should own and run the nation’s banks.
4. What is a mortgage used to purchase? (1 point)
car
real estate
college tuition
business expenses
5. Why is using coins as money easier than using gold bars? (1 point)
coins are more durable
coins are more portable
coins are more uniform
coins are more limited in supply
6. What happens when you make a purchase using a credit card? (1 point)
The credit card issuer pays the store.
The money is immediately deducted from your account.
The amount of the purchase is deducted from a prepaid account.
The place where you made the purchase receives the money within 24 hours.
7. What is the largest source of income for banks? (1 point)
the interest they receive from loans
fees charged to customers for accounts
money deposited in savings accounts
special accounts such as NOW accounts
8. When you pay for a new CD with a debit card, you authorize the transfer of money from your account to the music store’s account. In other words, a payment by debit card is the electronic form of a payment by
(1 point)
money order.
credit card.
check.
cashier’s check.
9. Which of the following statements is true?
(1 point)
Money is a medium of exchange.
Money is a unit of account.
Money serves as a store of value.
all of the above
10. In the 1990s, the Russian people lost confidence in the value of the ruble, and many were no longer willing to sell goods and services in exchange for Russian currency. Which characteristic of money did the Russian currency lack? (1 point)
acceptability
uniformity
limited supply
durability
11. The main advantage of diversification as an investment policy is that it (1 point)
reduces risk to investors.
increases investors’ access to their money.
offsets the effects of inflation on investments.
guarantees a fixed rate of return on an investment.
12. An accurate statement about bonds would be that (1 point)
they insured by the FDIC.
they are generally held for 3 or 6 months.
they are usually a low-risk investment.
they entitle the holder to a share of ownership in a corporation.
13. An example of equity is
(1 point)
a treasury bond.
a share of stock.
a treasury bill.
a long-term certificate of deposit.
14. All of the following are low-risk investments EXCEPT (1 point)
junk bonds.
treasury bonds.
municipal bonds.
savings bonds.
15. A stock that reinvests its earnings in the business instead of paying regular dividends is called (1 point)
an income stock.
a common stock.
preferred stock.
a growth stock.
16. In June, Leslie wins a cash prize of $2,000. She plans to use this money to pay her tuition bill in September. Leslie puts this money in a savings account because her main priority is (1 point)
receiving the maximum amount of interest possible.
taking a risk in hopes that she’ll get a high return.
liquidity, since she’ll need to use the money in a short time.
making a safe long term investment.
17. Against your better judgement, you lend $100 to your cousin Manny, who has a reputation for failing to pay back loans. You are taking a (1 point)
liquidity risk.
time risk.
inflamtion rate rate risk.
credit risk.
18. Since bonds are considered among the safest investments, you would expect that they would (1 point)
mature quickly.
have high interest rates.
take a long time to mature.
have low interest rates.
19. The Great Crash can be attributed to all of the following reasons EXCEPT (1 point)
many people had gone into debt buying consumer items on credit.
the practice of making high-risk investments with borrowed money.
the small number of people buying stock on margin.
a relatively few companies and families held much of the nation’s wealth.
20. You are a financial ad

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