6)Generally, as stock prices rise

a)prices for clothes, toys and other consumer goods rise AND bond prices fall.

b)prices for clothes, toys, and other consumer goods fall AND bond prices fall.

c)prices for clothes, toys, and other consumer goods rise AND bond prices rise.

d)prices for clothes, toys, and other consumer goods AND bond prices remain about the same.

7)In 2020, Billy Trowbridge bought a $50,000 bond from McDonalds, Inc. For all practical purposes, Billy

a)took a loan for $50,000 from McDonald's.

b)gave a $50,000 loan to McDonald's.

c)offered a $50,000 discount to McDonald's

d)bought $50,000 in stock from McDonald's.

8)Public housing in many urban areas, such as Chicago's, Cabrini Green, has

a)been overwhelmingly successful in helping residents learn skills they can use in jobs, join the middle class, and escape poverty and crime.

b)had success in helping residents learn valuable occupational skills, avoid crime, and quickly move in to the middle class.

c)failed to help residents learn valuable job skills, live in safe areas, and escape poverty and gang-related violence.

9)Isaiah received a $10,000 auto loan from Bank of America for 10 years at 10% and now wants to know how much he must pay if he keeps the loan for ten years. What does the $10,000 stand for in the problem?

a)interest

b)principal

c)maturity

d)mutual fund

10)When most peoplepurchase a stock today they

a)must pay fees to a broker.

b)become a part-owner of a company.

c)can lose all of the money they paid for it.

d)all of these.

11)For most of the 1930s, the U.S. and much of Europe was in in which phase of the business cycle?

a)recovery

b)recession

c)depression (bust)

d)boom

12)In 2010, Hans Pabstbought ten shares of a stock at $75 per share. Twelve years later, he sold these ten shares for $100 per share. What was his net (actual) profit from the sale?

a)$50

b)$75

c)$100

d)$250

13)Bonds sold by businesses in financial trouble, such as Toys R US and J.C. Penney are

a)government bonds and usually are sold at the same price and mature in a relatively shorter time than most government bonds.

b)government bonds and are usually sold at a higher price and mature in a shorter time than most government bonds.

c)private bonds and are sold at a lower price and carry more risk than most private bonds.

d)private bonds and are sold at a higher price and carry less risk than most private bonds.

14)Which institution below was established to protect the public in the sale of stocks and other investments?

a)The Securities and Exchange Commission (The S.E.C).

b)The Federal Reserve System (The Fed)

c)The First Bank of the U.S.

d)The U.S. Congress

15)The Federal Reserve System has the LEAST influence over

a)the money supply.

b)discount rates.

c)the reserve requirement.

d)fiscal policy.

16)True or false? The Northeast Corridor is the largest megalopolis in the U.S.

a)true

b)false

17)An investor described as a "bear" expects prices of____to_____.

a)government bonds; rise

b)government bonds; fall

c)stocks; fall

d)stocks; rise

19)In a bull market

a)more people buy stocks than sell them.

b)more people sell stocks than buy them.

c)an equal number of people buy and sell stocks.

20)Which union leader is matched correctly with the union he led?

a) Terence PowderlyAmerican Federation of Labor (A.F.L.)

b)Samuel GompersAmerican Federation of Labor (A.F.L.)

c)Cesar ChavezKnights of Labor (K.of L.)

d)John L. LewisKnights of Labor (K.of L.)

21)Investors in stocks and bonds are usually instructed

a)to consider diversification a good idea.

b)to consider diversification too risky.

c)to regarddiversification as irrelevant to investing.

22)During a period of deflation, such as in_______the value of money _____.

a)Austria and the U.S. in the 1930s; falls

b)Austria and the U.S. in the 1930s; increases

c)the U.S. today; falls

c)the U.S. today; remains the same

23)When you receive a loan from a lending institution like a bank, which should you expect to pay back?

a)interest

b)principal

c)both principal and interest

d)none of these

24)In a capitalist (free market)economy most economic decisions are made by

a)government planners.

b)traditional rules.

c)individual consumers and producers.

d)political leaders.

25)The Federal Reserve System of the U.S. was establishedin_____to________.

a)the early 19^thcentury; give more order to the country's financial system

b)the early 20^thcentury; give more order to the country's financial system

c)the early 19^thcentury; to reduce the number of regulations in the country's financial system.

d)the early 20^thcentury; to reduce the number of regulations in the country's financial system.

26)In the Soviet Union, business decisions about the use of resources were based on

a)market prices.

b)government regulations.

c)both private and public interests.

27)The Federal Reserve System of the U.S. does NOT include

a)a Board of Governors.

b)twelve Federal Reserve districts

c)member banks.

d)deposits from private individuals.

28)The Federal Reserve System could tighten the money supply by

a)increasing reserve requirements.

b)lowering interest rates

c)printing more money.

d)selling more government bonds, such as treasury bonds

29)Which pair of early American leaders supported the printing of"hard money" over "soft money"?

a)Alexander Hamilton & Thomas Jefferson

b)Alexander Hamilton & Nicholas Biddle

c)Thomas Jefferson &Pres. Andrew Jackson

d)Nicholas Biddle & Pres. Andrew Jackson

30)WhichLong Island community would probably benefit the most from becoming an opportunity zone?

a)Brentwood

b)Commack

c)Dix Hills

d)The Hamptons

31)Private property and competition between businesses are common in economies that are

a)socialist.

b)communist.

c)capitalist.

d)feudal.

32)In the struggle between labor and management, which is a weapon used by labor?

a)the strike

b)the lockout

c)strikebreaking

d)the injunction

33)Competition in a capitalist economy should cause producers to

a)make better products.

b)make products more efficiently.

c)adjust as consumer demand changes.

d. all of the above.

34)In the struggle between labor and management, a weapon used by management is

a)the lockout.

b)the boycott.

c)the slowdown.

d)picketing.

35)Which of the following choices gives the events in the correct chronological sequence?

a)The Federal Reserve System is set up; Alexander Hamilton helps establish The First Bank of the U.S.; Pres. Andrew Jackson attacks The Second Bank of the U.S.

b)Alexander Hamilton helps establish The First Bank of the U.S.;The Federal Reserve System is set up; Pres. Andrew Jackson attacks The Second Bank of the U.S.

c)Alexander Hamilton helps establish The First Bank of the U.S.; Pres. Andrew Jackson attacks The Second Bank of the U.S.; The Federal Reserve System is set up

d)none of these is correct

36)In socialist economies, such as Venezuela, most public services, such as buses and trains, are owned by

a)the government.

b)private citizens.

c)private companies.

37)Which of the following gave unions the right to bargain collectively?

a)The Wagner Act

b)The Securities and Exchange Commission (The S.E.C.)

c)The Federal Reserve System (The Fed)

d)The Second Bank of the U.S.

38)Which group is the most vulnerable to the effects of inflation?

a)young men and women who have begun their careers.

b)People who have retired and are living on fixed incomes.

c)Professionals, such as engineers and teachers, who are in the middle of their careers

d)Professionals, such as engineers and teachers, who will be retiring in the next five to ten years.

39)Under which economic system do consumers have the most choices?

a)feudalism

b)capitalism

c)socialism

d)communism

40)Which of the following contributed directly to the creation of the Federal Reserve System?

a)The American Revolution

b)The Civil War

c)The Bank Panic of 1907

d)the election of Pres. Woodrow Wilson

41)Compared to buying bonds, buying stocks is

a)less risky.

b)more risky.

c)the same level of risk.

42)Dividend and price per share are associated with which type of investment?

a)stock

b)mutual fund

c)bond

43)Investors sell their shares of stock

a)to make profits.

b)to raise cash.

c)to invest in higher-paying investments, such as long-term bonds.

d)all of these

44)Which nation is matched correctly with its economic system today?

a)Chinacapitalism

b)The U.S.capitalism

c)Russia--socialism

d)Mexico-communism

45)People who own part of a company can be described as

a)investors.

b)employees.

c)shareholders.

d)bondholders.

46 )Which type of area in the U.S. has seen the greatestincreases in population and economic activity in recent decades?

a)rural

b)suburban

c)urban

d)rural and suburban

47)Two economists who changed the course of events in the _____centurywere______and _______.

a)19^thcentury;Karl Marxand Friedrich Hayek.

b)19^thcentury; Nicholas Biddle and John Maynard Keynes.

c)20^hcentury; Nicholas Biddle and Friedrich Hayek.

d)20^hcentury; John Maynard Keynes and Friedrich Hayek.

48)Cesar Chavez was

a)an Americanlabor leader who led the United Farm Workers.

b)an American business executive who led Microsoft, Inc.

c)a politician who became President of Mexico.

d)none of these.

49)Investing in opportunity zones in the U.S. gives investors the chance to

a)improve low-income areas.

b)receive tax benefits.

c)put their capital gains to work.

d)all of these

50)The Federal Reserve System

a)acts as the central bank of the U.S..

b)decides how much money will be printed and put into circulation.

c)conducts open market operations.

d)all of these