Money Moves
Which companies or organizations keep track of your borrowing history?
A. The IRS
B. Your financial institutions
C. Credit bureaus
D. The Department of Consumer Affairs
C. Credit Bureaus
All of the transactions that occur in connected markets across the economies of different countries create...
A. The global economy
B. Your country’s economy
C. A goods and services market
D. The stock market
A. The global economy
______ is the total value of all the finished goods and services produced in a country over a certain period of time.
A. The inflation rate (IR)
B. Gross domestic product (GDP)
C. The unemployment rate (UR)
D. Producer Price Index (PPI)
A(n) _________ is a person who starts a new business and assumes all the risks and rewards of running the business.
A. Angel investor
B. Venture capitalist
C. Manager
D. Entrepreneur
D. Entrepreneur
How comfortable you feel taking the risk of losing your money refers to:
A. Time horizon
B. Asset allocation
C. Personal financial health
D. Risk tolerance
Your ability to get your money back from a scam or fraud depends on what?
A. If you authorized the payment or check
B. How much money you lost
C. Whether or not the police believe you
D. Which financial institution you use
A. If you authorized the payment or check
Which of the following is NOT an example of a financial market?
A. The capital market
B. The money market
C. The derivatives market
D. The export market
The ____ phase in the business cycle is a period when the level of business activity rises and GDP grows.
A. Expansion
B. Peak
C. Contraction
D. Trough
A. Expansion
If an entrepreneur says they are using “bootstrap financing,” what are they referring to?
A. They took a bank loan to help pay for their startup costs.
B. They are looking for private investors for their company.
C. They used their own money to start their business.
D. They are looking to go public on the stock market.
C. They used their own money to start their business.
___________ is an investment strategy that mixes a wide variety of investments from different categories within a portfolio.
A. Asset allocation
B. Diversification
C. Risk tolerance
D. Technical analysis
B. Diversification
Why is it important to contact customer support of your P2P app or service if you feel you have been scammed?
A. They can contact the police and file a report for you.
B. They can offer you additional protections for your account since you have been scammed.
C. They may be able to remove the scammer from the P2P app or service.
D. They should not be contacted; contact the police instead.
C. They may be able to remove the scammer from the P2P app or service.
What is a stock exchange?
A. A place where investors can buy and sell different investments.
B. A type of bank that buys and sells different types of investments.
C. An organization that owns shares of stock.
D. None of the above
A. A place where investors can buy and sell different investments.
What is monetary policy?
A. Policy set by the Central bank to influence the amount of money and credit available in the economy.
B. Policy set by the government to influence the amount of money and credit available in the economy.
C. Policy set by the government to influence government spending and tax policies.
D. Policy set by the Central Bank to influence government spending and tax policies.
A. Policy set by the Central Bank to influence the amount of money and credit available in the economy.
An _______ is when a private company offers stock to the public for the first time.
A. Income Profit Opportunity
B. Investment Portfolio Option
C. Interest Producing Obligation
D. Initial Public Offering
D. Initial Public Offering (IPO)
A ______ is a fixed income investment that represents a loan from an investor to a borrower.
A. Stock
B. Bond
C. Cash Equivalent
D. Mutual Fund
B. Bond
What should you do if you suspect you are the victim of identity theft?
A. Review your credit report, alert your financial institutions, and change your passwords
B. Review your credit report, alert your financial institutions, and delete your hard drive
C. Review the news, alert your credit card company, and change your passwords
D. Review your passwords, alert your credit report and change your financial institution.
B. Review your credit report, alert your financial institutions, and delete your hard drive
The capital market is the market for…
A. Short-term money market investments
B. Futures and forwards
C. Stocks and bonds
D. Currencies
C. Stocks and bonds
Which of the following statements about monetary policy is TRUE?
A. Monetary policy is set by the government.
B. Monetary policy adjusts the amount of government spending in the economy.
C. Monetary policy adjusts the amount of money and credit available in the economy.
D. All of the above
C. Monetary policy adjusts the amount of money and credit available in the economy.
Which of the following steps is NOT involved in going public?
A. Coming up with a ticker symbol
B. Forming a Board of Directors
C. Finding private investors to invest
D. Writing a registration statement for the Securities and Exchange Commission
C. Finding private investors to invest
Which of the following statements is FALSE?
A. Investing is best when you’re looking to maintain the value of your money with a little bit of growth.
B. You earn interest in a savings account and a return by investing in the stock market.
C. Putting your money in a savings account is best if you’ll need to withdraw the money in the near future.
D. Investing is riskier than putting your money in a savings account.
A. Investing is best when you’re looking to maintain the value of your money with a little bit of growth.
Which of the following are ways your funds are protected by the FDIC/ NCUA and Regulation E when using a P2P payment app or service?
A. FDIC/NCUA protects the payment transfer and Regulation E protects the recipient.
B. Regulation E protects electronic payments during transfer and the FDIC/ NCUA protects the money in your financial account.
C. Regulation E protects your funds if you send payment to the wrong person and the FDIC/NCUA insures money in your account.
D. Regulation E is another name for the FDIC/NCUA and they both protect money in your account.
B. Regulation E protects electronic payments during transfer and the FDIC/ NCUA protects the money in your financial account.
Which of the following statements about the relationship between the financial market and the economy is TRUE?
A. The financial market helps the economy grow.
B. The financial market only benefits companies in the economy.
C. The goods and services market influences the economy more than the financial market.
D. There is no relation between the financial market and the economy.
A. The financial market helps the economy grow.
Which of the following statements about economic policy are FALSE?
A. Economic policy is used to ensure all businesses are following regulations.
B. Economic policy helps to control the level of inflation.
C. Economic policy is used to avoid depressions.
D. Economic policy helps manage the level of unemployment.
A. Economic policy is used to ensure all businesses are following regulations.
What is the difference between debt financing and equity financing?
A. Startups are often able to get debt financing much easier than equity financing.
B. Equity financing involves selling shares of ownership in the company while debt financing does not.
C. Equity financing often involves paying interest while debt financing does not.
D. None of the above
B. Equity financing involves selling shares of ownership in the company while debt financing does not.
Which of the following statements about stocks is FALSE?
A. Stocks represent a share of ownership in a company.
B. When you buy stocks, you get a say in shareholder meetings.
C. Stocks pay out interest annually.
D. Stocks are considered relatively risky compared to bonds.
C. Stocks pay out interest annually.