Economics (Week 12 Test)

Question 1(1 point)

Which is NOT generally considered a positive characteristic of a medium of exchange?

Question 1 options:

A. Rare

B. Durable

C. Intrinsically worthless

D. Intrinsically valuable

E. Portable

Question 2(1 point)

Which one of these is a PROBLEM with using emeralds as a currency?

Question 2 options:

A. They are pretty

B. They are durable

C. They are green

D. They have intrinsic value

E. They are not easily divisible

Question 3(1 point)

Which of these was a problem with using tobacco as a currency?

Question 3 options:

A. After the surgeon's warning, people stopped smoking

B. The better tobacco was taken out of circulation

C. It became hard to find tobacco

D. The Virginians didn't want their clothes to smell like smoke

E. None of the above

Question 4(1 point)

Regarding coinage, which of the following would be considered an important characteristic of good money?

Question 4 options:

A. Durable

B. Rare

C. Divisible

D. Valuable

E. All of the above are important characteristics

Question 5(1 point)

Which of the following is NOT a major CURRENT currency?

Question 5 options:

A. The Japanese Yen

B. The United States Dollar

C. The Euro

D. The byzant

E. Australian Dollar

Question 6(1 point)

If a bank has a high "loan failure rate," it normally means:

Question 6 options:

A. That as long as they keep making loans, everything will work out

B. It means they failed to make enough loans

C. That normally IS good for the bank

D. That is NOT good for the bank

E. That the loan officers can expect a big bonus

Question 7(1 point)

In the investing world, "going public" means:

Question 7 options:

A. Exposing the underhanded way the management treats employees

B. Finally going out to lunch instead of eating at one's desk every day

C. Allowing investors to buy shares in the company on a stock exchange

D. Holding all your management meetings online

E. None of the above

Question 8(1 point)

What street is The New York Stock Exchange on?

Question 8 options:

A. Wall Street

B. Ceiling Street

C. Washington Blvd.

D. Main Street

E. Broad Street

Question 9(1 point)

What was the purpose of the American bishops issuing the document "Principles for USCCB Investments"?

Question 9 options:

A. To inform Catholics that they have a duty to make plenty of money

B. To show Catholics how to get ahead in a dog-eat-dog world

C. To explain what is meant mutual funds

D. To help Catholics know the difference between stocks and bonds

E. To show Catholics how to invest in an ethical manner

Question 10(1 point)

Which of the following is NOT a major stock exchange?

Question 10 options:

A. The NASDAQ

B. The Columbus Stock Exchange

C. The London Stock Exchange

D. The Japan Exchange Group

E. The New York Stock Exchange

Question 11(1 point)

When someone borrows money from a bank and signs mortgage loan documents, what is he borrowing money to purchase?

Question 11 options:

A. A car

B. A pet

C. A house

D. A college education

E. A medical service

Question 12(1 point)

When people borrow money from banks to buy cars, what normally serves ascollateral?

Question 12 options:

A. The borrower

B. The lender

C. The car

D. The pen used to sign the documents

E. A house

Question 13(1 point)

In investment terms, a "bond" is MOST similar to which of the following?

Question 13 options:

A. An IOU

B. A car

C. A house

D. A sale

E. None of the above

Question 14(1 point)

When an investor owns stock, what does she own?

Question 14 options:

A. A bond

B. A house

C. A mortgage

D. Part of the underlying company

E. A vehicle

Question 15(1 point)

The federal government has a system that provides income for millions of people in their retirement and/or old age. What is it called?

Question 15 options:

A. 401K

B. Social Security

C. IRA

D. NASDAQ

E. An index fund

Question 16(1 point)

Which of the following is BEST REASON that the barter system is clumsy and inefficient?

Question 16 options:

A. Because not enough people know about it

B. Because it is immoral

C. Because it is unlikely that two random people each want the other's products or services

D. Because barter is subject to high taxation

E. None of the above