quiz Flashcards
which of the following a barter system?
instead of paying rent, you clean
an example of representative money?
an IOU note
what is a mortgage used to purchase?
real estate
which of the following is not an ex of a liquid assets
a certificate of deposit
why is using coins as money easier than using gold bars?
coins are more portable
what condition is necessary for a fiat money system?
the gov must control money supply
what happens when you make a purchase using a credit card
the credit card issuer pays the store
when you invest in a mutual fund
your money invested in stocks and bonds
in june leslie
liquidity
what is largest source for income for banks
the interest they receive from loans
what happens during a bank run
more customers withdraw money than the bank has on hand
what is the purpose of FDIC
to make sure that customers do not lose money if a bank fails
your neighbor asks you to invest $500….?
you can offset your risk by asking for a higher interest rate
