Question 1

If a bank goes bankrupt, the funds of individual depositors are protected by the:

Accepted Answer

FDIC (Federal Deposit Insurance Corperation)

Question 2

Electronic banking was made possible by:

Accepted Answer

computers

Question 3

The Fed and/or Congress can make more money by:

Accepted Answer

borrowing from China or other countries; selling securities

Question 4

Members of the Board of Govenors:

Accepted Answer

appointed by the PResident

Question 5

Decisions to raise or lower interest rates are made by the:

Accepted Answer

FED

Question 6

The most important Fed bank is in:

Accepted Answer

New York

Question 7

1/4 of the world's gold is stored in:

Accepted Answer

New York Fed

Question 8

Which of the following is a result of loose money policy?A) people are willing to borrow moneyB) consumers hesitate to buy new homesC) people are unwilling to borrow moneyD) businesses postpone expansion

Accepted Answer

A)people are willing to borrow money

Question 9

Which of the following is a result of tight money policy?A) people are willing to borrow moneyB) consumers are willing to buy new homesC) businesses cut back productionD) businesses are willing to expand

Accepted Answer

C) businesses cut back on production

Question 10

Why would we want to shrink the money supply?

Accepted Answer

to control inflation

Question 11

The first purpose of fractional reserve banking is to:

Accepted Answer

be sure banks can supply cash for demand deposits

Question 12

If the Fed lowers the reserve requirement:

Accepted Answer

more money is avaliable to loan

Question 13

To decrease the money suply the Fed can:

Accepted Answer

increases the reserve requirement

Question 14

A high interest rate:

Accepted Answer

discourages borrowing

Question 15

One problem of carrying out monetary policy is that:

Accepted Answer

there is difficulty in determining how much money is in circulation

Question 16

One of the public goods that only the federal government provides is:

Accepted Answer

national defense

Question 17

Museums, parks, and libraries are examples of:

Accepted Answer

merit goods

Question 18

The federal govenment's tax credit for putting in solar panels is an example of:

Accepted Answer

regulating economic activity

Question 19

Which program provides income for the very poor?

Accepted Answer

welfare

Question 20

Which program provides medical care for retired workers?

Accepted Answer

Medicare

Question 21

When the government's expenses are larger than its income, we have what kind of budget?

Accepted Answer

deficit

Question 22

The total of all the money our government owes is the:

Accepted Answer

debt

Question 23

When the budget calls for spending more money than is coming in, the government must raise extra funds by:

Accepted Answer

selling securities

Question 24

Most state, local, and federal income comes from:

Accepted Answer

taxes

Question 25

A tax paid by all people who cross a bridge is an example of:

Accepted Answer

benefits-recieved tax

Question 26

A tax on hunting equipment that is used to provide public lands for hunting is an example of:

Accepted Answer

benefits- recieved tax

Question 27

A property tax paid by all home owners that is used to pay for public schools is an example of:

Accepted Answer

ability-to-pay tax

Question 28

Which of the following is a progressive tax?

Accepted Answer

federal income tax

Question 29

which of the following is a regressive tax?

Accepted Answer

sales on food tax

Question 30

Income that is removed from the economy by taxation or savings will:

Accepted Answer

decrease the money supply

Question 31

What will inject money into the economy:

Accepted Answer

consumer loans

Question 32

Supporters of fiscal policy believe that inflation can be reduced by:

Accepted Answer

increasing taxes

Question 33

Fiscal policy can combat unemployment by:

Accepted Answer

decreasing taxes

Question 34

When a check writer and the person he/she wrote the check both use the same bank:

Accepted Answer

the check never leaves the bank

Question 35

Who is the cahirman of the Federal Reserve System?

Accepted Answer

Ben Bernanke

Question 36

Monetarist theory:

Accepted Answer

opposes the use of fiscal policy

Question 37

One criticism of fiscal policy is that:

Accepted Answer

there is a time lapse between enacting it and when it becomes effective

Question 38

The ability to purchase things with borrowed money is called:

Accepted Answer

credit

Question 39

The money one borrows is the:

Accepted Answer

principle

Question 40

How do commercial banks make money:

Accepted Answer

charging interest on loans

Question 41

What does that Fed not do?

Accepted Answer

provide services for consumers

Question 42

The Federal Reserve is not responsible for:

Accepted Answer

taxes

Question 43

If the Federal Reserve adopts an expansionary monetary policy:

Accepted Answer

interest rates fail & cradit is easy to get

Question 44

John Meynard Keynes believed that government should:

Accepted Answer

use fiscal policy

Question 45

Programs that only help the very poor are known as:

Accepted Answer

public assistance programs

Question 46

A program that provides monthly payments to people who work, but are now retired is called:

Accepted Answer

Social Security

Question 47

During the 1930's:

Accepted Answer

unemployment was very, very high

Question 48

One of the major goals of stabalizing the national economy is to:

Accepted Answer

even out the business cycle

Question 49

Monetarism is linked with the economist:

Accepted Answer

Milton Friedman

Question 50

Fiscal policy was first used on a large scale during the:

Accepted Answer

1930's

Question 51

An example of a demerit good is:

Accepted Answer

cigarettes

Question 52

When the national budget has more expenses than income, this is called:

Accepted Answer

deficit financing

Question 53

To increase the money supply, the fed would:

Accepted Answer

buy securities

Question 54

To decrease the money supply the Fed would:

Accepted Answer

raise the reserve requirements

Question 55

What is not a demand deposit?A) a mortgageB) a checking account C) a savings account D) a debit card

Accepted Answer

A) a mortgage

Question 56

The ability of money to increase when it moves from person to person is called the:

Accepted Answer

multiplier effect

Question 57

A run on the bank occurs when:

Accepted Answer

too many people try to take their money out of the bank at the same time

Question 58

What is the term that means it is good for individuals to save money, but bad for the economy as a whole:

Accepted Answer

the paradox of thrift

Question 59

During which president's term have we had a budget surplus?

Accepted Answer

Clinton

Question 60

Which activity would the government be most likely to remove all taxes from:

Accepted Answer

fishing

Question 61

What is our Fed branch?

Accepted Answer

Dallas

Question 62

What is the Fed branch of the Baton Rouge is:

Accepted Answer

Atlanta

Question 63

When a check from a bank in one Federal Reserve district is deposited in a bank in another Federal reserve district, what is the first thing in the bank in which the check is deposited does:

Accepted Answer

A)credit the account to whom the check was written

Question 64

When a person writed a check for more money than is in the person's account:

Accepted Answer

when the check writer's bank recieves the check from its Fed branch bank, it retuens it and noted that there are not enough funds to pay it

Question	Answer
If a bank goes bankrupt, the funds of individual depositors are protected by the:	FDIC (Federal Deposit Insurance Corperation)
Electronic banking was made possible by:	computers
The Fed and/or Congress can make more money by:	borrowing from China or other countries; selling securities
Members of the Board of Govenors:	appointed by the PResident
Decisions to raise or lower interest rates are made by the:	FED
The most important Fed bank is in:	New York
1/4 of the world's gold is stored in:	New York Fed
Which of the following is a result of loose money policy?A) people are willing to borrow moneyB) consumers hesitate to buy new homesC) people are unwilling to borrow moneyD) businesses postpone expansion	A)people are willing to borrow money
Which of the following is a result of tight money policy?A) people are willing to borrow moneyB) consumers are willing to buy new homesC) businesses cut back productionD) businesses are willing to expand	C) businesses cut back on production
Why would we want to shrink the money supply?	to control inflation
The first purpose of fractional reserve banking is to:	be sure banks can supply cash for demand deposits
If the Fed lowers the reserve requirement:	more money is avaliable to loan
To decrease the money suply the Fed can:	increases the reserve requirement
A high interest rate:	discourages borrowing
One problem of carrying out monetary policy is that:	there is difficulty in determining how much money is in circulation
One of the public goods that only the federal government provides is:	national defense
Museums, parks, and libraries are examples of:	merit goods
The federal govenment's tax credit for putting in solar panels is an example of:	regulating economic activity
Which program provides income for the very poor?	welfare
Which program provides medical care for retired workers?	Medicare
When the government's expenses are larger than its income, we have what kind of budget?	deficit
The total of all the money our government owes is the:	debt
When the budget calls for spending more money than is coming in, the government must raise extra funds by:	selling securities
Most state, local, and federal income comes from:	taxes
A tax paid by all people who cross a bridge is an example of:	benefits-recieved tax
A tax on hunting equipment that is used to provide public lands for hunting is an example of:	benefits- recieved tax
A property tax paid by all home owners that is used to pay for public schools is an example of:	ability-to-pay tax
Which of the following is a progressive tax?	federal income tax
which of the following is a regressive tax?	sales on food tax
Income that is removed from the economy by taxation or savings will:	decrease the money supply
What will inject money into the economy:	consumer loans
Supporters of fiscal policy believe that inflation can be reduced by:	increasing taxes
Fiscal policy can combat unemployment by:	decreasing taxes
When a check writer and the person he/she wrote the check both use the same bank:	the check never leaves the bank
Who is the cahirman of the Federal Reserve System?	Ben Bernanke
Monetarist theory:	opposes the use of fiscal policy
One criticism of fiscal policy is that:	there is a time lapse between enacting it and when it becomes effective
The ability to purchase things with borrowed money is called:	credit
The money one borrows is the:	principle
How do commercial banks make money:	charging interest on loans
What does that Fed not do?	provide services for consumers
The Federal Reserve is not responsible for:	taxes
If the Federal Reserve adopts an expansionary monetary policy:	interest rates fail & cradit is easy to get
John Meynard Keynes believed that government should:	use fiscal policy
Programs that only help the very poor are known as:	public assistance programs
A program that provides monthly payments to people who work, but are now retired is called:	Social Security
During the 1930's:	unemployment was very, very high
One of the major goals of stabalizing the national economy is to:	even out the business cycle
Monetarism is linked with the economist:	Milton Friedman
Fiscal policy was first used on a large scale during the:	1930's
An example of a demerit good is:	cigarettes
When the national budget has more expenses than income, this is called:	deficit financing
To increase the money supply, the fed would:	buy securities
To decrease the money supply the Fed would:	raise the reserve requirements
What is not a demand deposit?A) a mortgageB) a checking account C) a savings account D) a debit card	A) a mortgage
The ability of money to increase when it moves from person to person is called the:	multiplier effect
A run on the bank occurs when:	too many people try to take their money out of the bank at the same time
What is the term that means it is good for individuals to save money, but bad for the economy as a whole:	the paradox of thrift
During which president's term have we had a budget surplus?	Clinton
Which activity would the government be most likely to remove all taxes from:	fishing
What is our Fed branch?	Dallas
What is the Fed branch of the Baton Rouge is:	Atlanta
When a check from a bank in one Federal Reserve district is deposited in a bank in another Federal reserve district, what is the first thing in the bank in which the check is deposited does:	A)credit the account to whom the check was written
When a person writed a check for more money than is in the person's account:	when the check writer's bank recieves the check from its Fed branch bank, it retuens it and noted that there are not enough funds to pay it
What economist is most closely associated with fiscal policy:	John Maynard Keynes
Economics is the study of how society:	fill its wants & needs
The basic problem of economics is:	scarcity
The first way people filled wants and needs was:	bartering
What number was part of the name of old, Spanish gold coins:	eight
To be value, an economic model should be correct:	most the time
To create economic models it is very important:	to discover cause and effect relationships
The country cannot achieve all its goals all the time due to:	scarcity
The most serious risk of start a business may be:	failure
What is NOT a factor of production:	profit
A market is the:	the voluntary exchange of goods & services
All people must deal with the problem of:	scarcity
The greatest problem with economic models is:	a huge number of variables
When we give up getting one thing to get another we have made a/an	trade-off
The more individuals save, the:	worse it is for the economy
Adam Smith believed that:	the economy is guided by an invisible hand if the government stays out
Adam Smith believed that:	people will always make choices in their own best interest
Karl Marx believed that:	from those according to their ability; to those according to their need
Which economic system has the closet family ties?	Traditional
Most countries have what kind of economy?	Mixed
Which economic system can reroute resources fastest?	Command
In which system is change discourage:	Traditional
Which economic system does not care about what happend to the poor, sick, and weak?	Market
Which economic system is preferred by Adam Smith?	Market
Which economic system is preferred by Karl Marx?	Command
Which economic system can combine the best of all other systems?	Mixed
In which system does everyone know what is expected of him?	Traditional
Which economic system has no incentive to work harder?	Command
In which economic system is one likely to do the same job as one's father?	Traditional
In which system can individuals become rich?	Market, or Mixed
Which economic system has the least consumer and producer choice?	Traditional
Which economic system has the most in common with the Command system?	Traditional
Which economic system does not work well even for short periods of time?	Command
The situation in which money adds income to the society everytime it is spent is the:	multiplier effect
Adam Smith wrote:	The Wealth of Nations
Karl Marx wrote:	the Communist Manifesto
Karl Marx lived most of his life in:	England
Karl Marx believed that the factors of production should be owned by:	the workers
Who was the first, famous economist?	Adam Smith
What influenced both Karl Marx and Adam Smith?	The Industrial Revolution
What country has a pure Command system with no elements of any other system:	North Korea; Cuba is pretty close to this
Price and demand are like:	a seesaw
Price and Supply are like:	a stalker and his victim
The equilibrium price is the point at which:	the supply and demand curves intersect
What is a substitute for whipped cream:	Cool Whip
What is the main reason government become involved in the economy:	to project and encourage competition
What can develop when the government sets price floors above the equilibrium price:	surpluses
What product is most likely to have elastic demand:	jeans
What is possible government intervention in the economy:,	price ceiling, tax policies intervention, price floors, other restrictions
The best example of perfect competition is:	eBay (Farmer's Market)
Why does the government set price floors above the equilibrium price for some products:	to prevent black markets
Perfect competition does not require:	different productions
If all the requirements of perfect competition are met, price is set by:	market forces of supply & demand
If the government wanted to discourage a certain activity it would:	place a high tax on it
The main purpose of government involvement in the economy is to:	encourage and protect competition
If production is below the equilibrium point, what will result	shortage
The best place to save money is in a:	bank
What country was used as a good and bad example of capitalism:	England
What will NOT cause the demand curve to shift:	changes in price
What is NOT marketing?	manufacturing
All the things that a bussiness owns are its:	assets
Merket surveys can be based on:	age, gender, income, education
Most advertising today tries to:	create a life-style
Many economists believe that marketing makes up what percentage of the price of products:	50%
The first advertising was used to do what:	let people know that the product existed
Which bussiness does not sell to consumers?	wholesaler
What is another term for advertising:	marketing
Part of a corperation that is owned by an individual is called:	stock
Adds that tell the consumner that his or her life will improve if the product is used:	appeal to the emotions
The owner of a business is the:	proprietor
Business assets are:	everything that a business owns
What is set up for a specific purpose for a short amount of time:	joint venture
All businesses have:	risk
Offering a product for sale in a small area for a limited amount of time:	test-marketing
Warehouse stores, e-commerce, catalogues, and direct marketing are examples of:	sales techniques
Articles of incorporation do not:	list the products the corporation produces
Unlimited liability mean that the owner of a business may lose:	everything plus what his/her spouse owns
Dividends come from:	profits
In what form of business does the owner pay money to large corporation to get to use thier name and other services:	joint-venture corporation
What process gathers and analyzes data:	market research
Product, price, place, and promotion are:	the 4 p's of marketing
Another word for stock is:	share
The production life-cycle includes:	introduction, growth, maturity, decline
If a corporation goes bankrupt, the owners may lose:	what is invested in the business

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