Economics 5th Six Weeks Exam

1.

3 points

Kathleen would like to invest her money so it can grow. She knows there are risks involved, but she is willing to take a
chance. She knows that putting her money into different investments will lower the risk.
Kathleen should consider all of the following risks when investing her money EXCEPT –

A

B

C

D

2.

3 points

When Andrew and Sandra were looking to buy their first home, they used the following equation to determine their personal net worth.
assets - _______ = net worth
Which of the following best completes the equation above?

F

G

H

J

3.

3 points

Which of the following would give you the greatest possible security for your retirement?

A

B

C

D

4.

3 points

Which of the following describes the correct relationship between savings and capital formation?

F

G

H

J

5.

3 points

Juan and Marisol have wanted a new home for some time now. They both have stable, good paying jobs and plenty of references
from friends, family, and supervisors. They own their two cars, but they have not saved any money.
Which of the "Three Cs of Credit" are they lacking?

A

B

C

D

6.

3 points

The ____________the risk in the investment of savings, the ___________ the possible return. The ____________the risk in the investment of savings, the ___________ the possible return.

F

G

H

J

7.

3 points

Benefits of Home Ownership : _____________ :: Costs of Home
Ownership : ____________ .

A

B

C

D

8.

3 points

Christina's grandmother is moving in with her family so they can help her. Their current home won't make for a really comfortable arrangement, but Christina's parents need to eliminate their credit card debt in order to qualify for a low interest mortgage rate.
All of the following are ways they can eliminate their debt EXCEPT–

F

G

H

J

9.

3 points

Cody is thinking of buying car insurance. Which of the following is a benefit Cody should consider?

A

B

C

D

10.

3 points

Bankruptcy benefit : _________ :: Bankruptcy cost : _____________.

F

G

H

J

11.

3 points

Which type of bank account is not insured?

A

B

C

D

12.

3 points

Which of the following would not improve your credit score?

F

G

H

J

13.

3 points

What is the best category title for the items in the list on your test paper?

A

B

C

D

14.

3 points

Which of the following does not belong in the list on your test?

F

G

H

J

15.

3 points

Which of the following does not belong in the list above?

A

B

C

D

16.

3 points

Which of the following is not an annual cost of owning a home?

F

G

H

J

17.

3 points

Why would a person place his savings in a high risk investment rather than a low risk investment?

A

B

C

D

18.

3 points

If families and businesses did not have the ability to save money in financial institutions, all of the following would be missing EXCEPT –

F

G

H

J

19.

3 points

Which economic concept does Bill Gates describe?

A

B

C

D

20.

3 points

open-end credit : __________ :: closed-end credit : __________ .

F

G

H

J

21.

3 points

Which of the following best completes the flow chart on your test?

A

B

C

D

22.

3 points

All of these on your test raise revenues for which of the following governing bodies?

F

G

H

J

23.

3 points

International trade allows a nation to shift its production possibility curve ________ and have __________ goods and services, ___________ adding additional resources, _________ new technology, simply using __________ more efficiently.

A

B

C

D

24.

3 points

The unemployment rate has risen to 9.7%. The Gross Domestic Product (GDP) is declining along with the Consumer Price Index. It would appear this country is in a deep recession or early depression.
What would be the best way to get more money into the economy?

F

G

H

J