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.

A

B

C

D

2.

3 points

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

A

B

C

D

3.

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.

A

B

C

D

4.

3 points

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

A

B

C

D

5.

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–

A

B

C

D

6.

3 points

Which of the following would not improve your credit score?

A

B

C

D

7.

3 points

Costs of Bankruptcy
*Large drop in credit score
*Possible loss of personal property
*Negative effect on credit scores
*????
*Secured debt is not discharged
Which of the following does not belong in the list above?

A

B

C

D

8.

3 points

-income tax
-excise tax
-import tariffs
All of the above raise revenues for which of the following governing bodies?

A

B

C

D

9.

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?

A

B

C

D

10.

3 points

open-end credit : ___________ ::
closed-end credit : ___________ .

A

B

C

D

11.

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 –

A

B

C

D

12.

3 points

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

A

B

C

D

13.

3 points

*Intermediaries between savers and borrowers
*Convenient and safe place to store money
*Provide commercial and personal loans and mortgages
What is the best category title for the items in the list above?

A

B

C

D

14.

3 points

Which type of bank account is not insured?

A

B

C

D

15.

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?

A

B

C

D