Unit 4 Flashcards
(50 cards)
In the 1990s the Russian people lost confidence in the value of rubble and many were no longer willing to sell goods and services in exchange for Russian currency which characteristic of money did the Russian currency luck
Except ability
Saving bonds different from most other barns in that
The buyer does not receive periodic interest payments in exchange for a lower purchase price
You realize that many students who come to early-morning hockey practice do not get up early enough to eat breakfast you borrow $500 from your parents to start a bagel delivery service to the hockey rink in the early mornings you were acting as
An entrepreneur
You are a financial advisor his client wants start that he’s regular dividends you advise them to buy
Income stock
Which the following is an example of representative money
An IOU note
You need a new computer and you will need a loan in order to buy one which lender is most likely to charge you the highest interest rate on your loan
Finance company
Maria makes a deposit of $10,000 into a small town think savings account small-town bank wants 20% of her deposit then lens the remaining 8000 to bend to buy new car this practice of retaining only a portion of deposits on hand is called
Fractional reserve banking
You do not have to pay state taxes on the interest earned on
Treasury bills
If a bond from the franchise greens galore has a coupon rate of 5% of hard value of $2000 and will mature in five years how much will the company of paid to hold her when he retires its debts
$500 plus the original investment of $2000
Which of the following is an example of a barter system
Instead of paying rent you clean the house for the owner
What is the largest source of income for banks
Interest they receive from loans
How did the United States government make the American public has confidence in the nations currency in the 1870s
The government adopted the gold standard
In example of equity is
a share stock
Your neighbor asks you to invest $500 and a 5% interest in the catering business she insists that with all of thatwith all of the working parents in the neighborhood a business that provides home cook meals has the potential for making huge profits. You want to invest their concern because your neighbor has not had any business experience how can you offset your risk
Ask for a higher interest rate
What is a mortgage used to purchase
Real estate
Penny is an artist and John is a carpenter and he raced to paint a portrait of John’s family in exchange for a handmade table created by John how did Penny and John pay for goods in the transaction
Through bartering
The maid advantage of diversification in investment policy is that it
Reduces risk to investors
The most trades are made
On the OTC market
The great cash can be attributed to all of the following reasons except
The small number of people buying stock on margin
Which of the following is an example of money as a unit of account
Checking the price of a camera at several stores before buying it at the lowest price
Which of the following was not because of the savings and loan crisis of the 1980s
The gold reserves act
You decide to open a savings account and noticed a sign in your bank that indicates deposits are FDIC insured what protection does that give you
If the bank feels your deposits are protected up to $100,000
An example of blue-chip stocks might be
A large well-known company traded on the NYS E
Since bonds are considered among the safest investment you’d expect that they would
Have low interest rates
