QUESTION 1

The sum of money in your hand today will be worth the same amount in the future.

• True
• False

QUESTION 2

If you are risk averse you will most likely

• embrace
• accept
• dislike
• not notice
• uncertainty.

QUESTION 3

William wants to buy a house for 300,000.He is considering a 30-year fixed mortgage at 4.2%.What would his estimated monthly payment be to the nearest dollar?

• $1,467
• $1,167
• $12,600
• $10,552

QUESTION 4

William asks how much of each of his payments will be going toward interest when he reaches the half way point of this loan (180 payments) to the nearest dollar for his 300,000 dollar house that he will be paying 4.2% on with a 30 year fixed morgage.

• $180
• $688
• $779
• $196,451

QUESTION 5

Neil wants to retire with 1 million dollars in his 401k and he thinks he can because he has just started to work.He will have 50 more years of working till he retires.He believes he can earn 5.04% as an average rate in his life time.He wants to know how much he would have to deposit in his 401k every quarter to reach his goal of 1,000,000 dollars to the nearest dollar.

• $6.88
• $1,122
• $3,201
• $14,479

QUESTION 6

Neil asks if he was to put in money every month, how much would those payments be if he still had the same goal of 1 million in 50 years earning 5.04% to the nearest dollar?

• $370
• $374
• $3,201
• $18,015

QUESTION 7

Brandon has gone to bank to get an auto loan for a new Jeep Gladiator truck that cost $34,000.He does have $4,000 to put down on the truck but would need to borrow $30,000.Today, auto loan rates are 2.64% and the standard loan is for 5 years.He tells the bank he can make a payment of $500 a month.How much loan would he qualify for to the nearest dollar?

• $2,484
• $9,402
• $28,075
• $35,600

QUESTION 8

Diversification is a strategy to reduce

• risk
• time
• money
• intrest rate

QUESTION 9

A health economy should have some unemployment.

• True
• False

QUESTION 10

Which person below would not be counted as unemployed nor employed according to the BLS?

• Charles who is applying for multiple jobs and going on interviews.
• Monica who is a temporary receptionist for next 3 days only.
• Daniel who does the accounting at the family business but is not paid.
• Maria who is active-duty military.

QUESTION 11

The reason for frictional unemployment generally tends to be because

• It takes time for people to find the job that fits their knowledge and skills
• Business do not hire quickly enough
• People delay looking for jobs if they receive unemployment money
• There are less opening for new employees now than in the 1950's

QUESTION 12

Florida is a Right-To-Work state.This means in Florida an individual

• Is required to be a member in good standing of a union before applying for a job
• Is not required to join a union but will need to pay the union since it will negotiate the workers contacts
• Is not required to join a union to get hired but if there is a union, they must join the union within 90 days
• Is not required to join a union to work at any time during their employment

QUESTION 13

The unemployment rate never falls to 0 in an open economy

• True
• False

QUESTION 14

Mark all that is correct about the Theory of Efficiency Wages

• Employer will see an increase in worker's cooperation
• Increasing wages can lead to increased labor productivity
• Will decrease effort of workers since they now has high paying job
• Reduced turnover
• Increases hiring costs
• Increasing wages can lead to workers feeling more motivated to work for higher pay
• Can lead to increase disagreement between managment and employees
• Workers will tend to see wages as fair

QUESTION 15

Money is anything that serves as a medium of exchange?

• True
• False

QUESTION 16

Fiat Money is

• money that depends on its value in the stock market
• money that has value on its own
• money that derives its value from government law
• money that derives its value from supply and demand

QUESTION 17

Which is NOT a function of money

• Store of Value
• Medium of Exchange
• The Least Liquid Asset
• Unit of Account

QUESTION 18

Credit card purchases show be thought of as a type of loan

• True
• False

QUESTION 19

Monetary policy is set by congress.

• True
• False

QUESTION 20

Banks are only required to hold a fraction of the money that customers deposit in the bank.

• True
• False

QUESTION 21

Bailey is going to use borrowed money to buy his home.This process would be called

• Leveraging
• Reserve Ratio
• Equity
• Money Multiplier

QUESTION 22

At this time, most economist agree that the 2008 Great Recession was caused by

• High housing prices and low employment
• High levels of leverage and debt
• High interest rated and unfair lending practices
• High rate of failed subprime lending companies and the closer of Bear Stearns

2 points

QUESTION 23

Based on the classical theory of inflation which would be true if in 2020 you could buy 2 oranges for $3 dollars.

• In 2022 you could still buy 2 oranges for $3 dollars
• In 2022 to buy 2.5 oranges would cost you $3 dollars
• In 2022 to buy 1 orange it would cost you $2 dollar
• In 2022 to buy 1 orange it would cost you $1.50

QUESTION 24

The value of money is determined by supply and demand for money

• True
• False

QUESTION 25

Based on the graph below if prices were above the equilibrium, it would mean that

• There is a shortage of money
• The Fed will use interest rates for a long-run approach to control prices
• People will want to hold less money than the Fed has created
• People will hold more money than the Fed has created

QUESTION 26

You go to the store and sign says "watermelon $2.00".This sign is giving you the

• Nominal price
• Real price
• Relative price
• Exchange price

QUESTION 27

Felica give her kids a choice of what to do with $30 dollars she has saved for summer fun.She says they can either go to Andretti's and drive go-charts one night or they can go to the movies 6 times to see the all the summer blockbusters.Felica is using the

• Nominal price
• Real price
• Relative price
• Exchange price

QUESTION 28

According to the neutrality of money theory, the amount of money the Fed print will affect productivity and output of the nation.

• True
• False

QUESTION 29

When the central bank increases money supply ______ the result is ______ rate of inflation.

• slowly - high
• slowly - slow
• rapidly - high
• rapidly - slow

QUESTION 30

Mark all that are a cost of inflation listed below.

• Confusion
• Shoeleather Cost
• Run on Banks
• Inflaction-Induced Tax Distortions
• Relative-Price Variability
• Market Cost
• Menu Cost

QUESTION 31

Which is NOT one of the factors that affect trade.

• The income of consumer at home and abroad
• The exchange rate of domestic currency to buy foreign currencies
• The taste of consumer for domestic and foreign goods
• The domestic price of a product but not the foreign price of the product

QUESTION 32

Which is an example of a foreign direct investment?

• Rachel buys stock in a British Airline.
• Christopher buys land in Canada and starts a fishing camp.
• Daniel rents space for his London office from a local owner.
• Foreste sells his domestic made product on-line to people around the world.

QUESTION 33

When a country has a trade deficit (buying more goods and services than it is buying from the world), capital is flow into the country.

• True
• False

QUESTION 34

If Saving is equal to investment plus net exports, then that means that saving is equal to

• Domestic Investment - consumption
• Domestic Investment + all other investments
• Domestic investment + net capital outflow
• Domestic investment + foreign investment

QUESTION 35

One of the biggest issues in understanding of the US Trade Deficit over the last few years is which of the following.

QUESTION 36

The nominal exchange rate is the published trade rate that a person sees when they wish to trade US Dollars for another countries currency.

• True
• False

QUESTION 37

Based on the formula for the real exchange rate (see below), if you owned a store that sold computer when it would be best to buy domestic over buying foreign.Assume that the domestic price is a constant $25 dollars for the product and the foreign price is a constant $40.

The real exchange rate = nominal exchange rate x domestic price / foreign price

• Exchange rate is .5
• Exchange rate is 1
• Exchange rate is 1.5
• Exchange rate is 2

QUESTION 38

Based on the Purchasing-Power Parity theory, if in the US a candy bar cost $1 dollar then what should that same candy bar cost in England Pounds given the following information.

As of today, the exchange rate between the US dollar and British pound is $1 US = .75 GBP.

• .25 GBP
• .75 GBP
• 1 GBP

1.25 GBP

QUESTION 39

Purchase-Power Parity (PPP) states the difference in the exchange rate of currency between countries is a reflection of the difference in price levels between the countries.However, based on Burgernomics the difference between the Big Mac in one country and another most often does not match the difference in the exchange rate.While the index was at first made to be just fun, it now has demonstrated that

• That Burgernomics is a better index than PPP about currency rates
• Currencies rates between countries can be undervalued and overvalued
• That the difference in exchange rates is just made up by a bunch of people in the back room drinking whiskey and smoking cigars
• The whole concept of PPP is wrong

QUESTION 40

A mortgage is a type of credit.

• Bank
• Installment
• Revolving
• Single-Payment

QUESTION 41

A medical bill is generally this a type ofcredit.

• Bank
• Installment
• Revolving
• Single-Payment

QUESTION 42

Which law was created to give consumers the right to access their credit report.

• Truth in Lending Act
• Fair Debt Collection Practice Act
• Equal Opportunity Act
• Fair Credit Reporting Act

QUESTION 43

Credit repair is an easy process that often only takes reporting it once to the credit bureau.

• True
• False

QUESTION 44

.Which is a type of cooperative?

QUESTION 45

Which includes a saving component?

QUESTION 46

Which takes taxes out before their money is deposited into the 401K?

QUESTION 47

Which will set a 3^rdperson to legal hold an asset and then give the asset to a 3^rdparty and creates a fiduciary relationship.

QUESTION 48

Which is the quote rate and does not included compounding.

QUESTION 49

A 50/30/20 method of budgeting means:

• 50% of your take-home income should go toward living expenses such as mortgage and groceries, 30% should go toward discretionary expenses such as vacations and eating out, 20% should go toward pay debt and retirement fund
• 50% of your take-home income should go toward living expenses such as mortgage and groceries, 30% should go toward pay debt and retirement fund, 20% should go toward discretionary expenses such as vacations and eating out
• 50% of your take-home income should go toward necessary expense such as a new car, dining out, and new clothing, 30% should go toward required expenses such as credit cards and student loans, 20% should go toward retirement fund
• 50% of your take-home income should go toward necessary expense such as a new car, dining out, and new clothing, 30% should go toward retirement fund, 20% should go toward required expenses such as credit cards and student loans

QUESTION 50

According to Investopedia, if you have to carry a credit card balance form one month to the next, it is best to keep that balance to 30% or less of your available credit limit to help your credit score.

• True
• False