When the Dow is done by 50 points we are in a _________ market.
What is the bear market.
100
Someone wants to buy stock but they are worried about its current status as a "bear market" what does that mean.
What is the stock market is low. Investors are selling because they are anticipating lower profits.
100
What is fiat money?
What is object that have value because the government has decided that is does.
100
Mary makes cakes and Paul makes bread. Mary agrees to make a cake for Paul's mother's birthday and in exchange he will make her fresh french bread for a week. How did Mary and Paul pay for the goods in their transaction?
What is through bartering.
200
____________ are sometimes insured by the FDIC and are generally a low risk investment.
What is bonds.
200
What are the 3 basic components of a bond?
What is maturity, par value, and coupon rate.
200
Instead of paying paying for your coffee you tutor your barista on the role Otto von Bismarck played in the unification of Germany. This is an example of a _________ system.
What is the barter system.
200
What condition is necessary for a fiat money system to work?
What is the government must control the money supply.
200
__________ is a medium of exchange, a unit of account and a store of value.
What is money.
300
This is the interest rate the bond issuer pays to the bondholder.
What is the coupon rate.
300
If you borrow $500 from your parents to start a bagel delivery service you are acting as a(n) ___________.
What is entrepreneur.
300
An IOU is an example of ___________ money.
What is representative money.
300
What is the major source of income for banks?
What is the interest they receive from loans.
300
Martha decides to open a savings account and notices that her bank is FDIC insured. What does that mean?
What is if the bank fails the government protects up to $100,000 of her deposits.
400
To finance the building of a new police station, a local government is most likely to issue a ________ bond.
What is a municipal bond.
400
Why would a person invest in junk bonds?
What is they are looking for a high risk bond, with minimal possibility of making any money on the investment. In short, they know nothing about investment.
400
A mortgage is used to purchase this.
What is real estate.
400
Currency, travelers checks, and a checking account are all examples of ________ money.
What is M1 money
400
The Dow is up 80 points, what type of stock market is that?
What is a bull market.
500
This type of bond is a high-risk investment.
What is the junk bond.
500
If someone wants to buy stocks in the stock market but knows nothing about the stock market, who would you refer them to within the stock market.
What is a stockbroker.
500
Why do we use coins rather than gold bars?
What is portability.
500
A checking account and saving account are examples of _______ money.
What is M2 money.
500
_____________ a system in which paper money and coins had the value of a certain amount of gold.