31. A savings account with $30,000 and an annual interest rate of .04 percent will earn how much simple interest in one year? A. $4,000 B. $400 C. $1,200

____ 32. Federal Reserve notes A. are used as currency in the United States today. B. are set to certain amounts of gold and silver. C. have not been used in the United States since the Great Depression.

____ 33. In the last one hundred years, the production of manufactured goods in the American economy has increased. A. true B. false

____ 34. In the United States, the __________ controls the supply of money in circulation. A. Federal Reserve B. Congress C. State Association of Wildcat Banks

____ 35. What is a vertical merger? A. Two firms that manufacture the same product join together. B. Firms involved in different stages of production join together. C. Two firms that provide the same service join together.

____ 36. The legal obligation to pay debts is A. a business license. B. liability. C. a zoning law.

____ 37. __________ are issued by state and local governments and used to finance projects such as highways, parks, and schools. A. Junk bonds B. Municipal bonds C. Savings bonds

____ 38. The quantity theory is the belief that too much money in circulation causes A. globalization. B. inflation. C. deflation.

____ 39. If a corporation issues 1,000 shares of stock, and you buy five shares, you own __________ of the corporation. A. 5 / 1,000 B. 50 percent C. 5 percent

____ 40. Interest paid on a principal amount and interest previously earned is A. a mortgage. B. compound interest. C. simple interest.

____ 41. A business franchise A. pays fees to a parent company for the right to sell a good or service within a certain area. B. is a legal entity owned by individual stockholders who have limited liability. C. is a firm that combines three or more independent businesses and does not decrease competition.

____ 42. Real GDP (gross domestic product) is calculated with A. projected price increases for next year. B. constant prices. C. current prices.