Fundamentals of Economics
What is the meaning of scarcity?
Short supply of a specific item, a shortage.
A current of medium exchange in the form of coins and banknotes is called?
Money
What does APR stand for?
Annual percentage Rate
What are the benefits of financial planning?
Early retirement
Financial Security
Preparation for Emergencies
How much of your earnings should you save?
10%
What are the Factors of Production?
Land
Labor
Capital
Entrepreneurship
What role does the Government play in the Government?
Maintain competition, prevent monopolies, provide public goods and services, and stabilize the economy
What are the three c's of credit?
Capacity
Capital
Credit
What are some good financial goals?
Saving up to buy a home
Saving up for a car
Getting a nice job
How can you invest smartly?
By watching the news and reading articles on websites such as yahoo finance.
Let's say there is a shortage in the supply of Cocoa beans. How will this affect the price and demand?
Both will go up
What is GDP and CPI?
Consumer Price Index
Gross Domestic Product
Is it good to have debt? Why or why not?
Debt can be good if you can pay it off, because your credit score will go up.
Too much debt can be bad because it will hurt your credit score.
Factors that influence financial planning?
Your Age
Spending Behavior
Certain Responsibilities
What is a mutual fund?
It pools money together from people and invests it in the market
There are many economic systems. There are four to be specific, and they are a traditional Economic System, a Command economic system, a market economic system, what is the fourth one?
Mixed Economic System
What is the lowest point in a business cycle?
Trough
How many credit cards can you get from a company?
As many as you wish. There is no limit.
What would be the opportunity cost if I wanted a bike and iPhone, but I bought the bike?
The iPhone.
What does it mean to diversify your portfolio?
It means to spread out your investments into different stocks so all of your money isn't on one single stock. Your exposure to each stock is limited.
Companies engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange are called?
Financial Institutions
What role does trade play in the global economy?
It fuels economic growth, creates jobs, raises living standards, and helps Americans provide for their families with goods and services.
Let's say you just came home from vacation in Florida and you get a notification that your card has been charged $1000 for something you haven't bought. What do you think happened? What will you do?
Your credit card information was stolen and is being used illegally. You should call your bank and inform them that someone has stolen your credit card information. You should also cancel that card.
What are the steps of financial planning?
What are the five types of risks?
investment risk, market risk, inflation risk, business risk, liquidity risk