Economics
What is the law of supply and demand?
What is when supply increases, prices tend to fall, and when demand increases, prices tend to rise?
What are the three main financial statements businesses use?
What are the balance sheet, income statement, and cash flow statement?
What is a stock, and how does it generate profit?
What is ownership in a company, earning profits through dividends and capital appreciation?
What is the primary function of a commercial bank?
What is providing financial services like loans, checking/savings accounts, and investments?
What is the difference between a market and a mixed economy?
What is a market economy relies on supply and demand, while a mixed economy combines private enterprise with government regulation?
What is the purpose of a balance sheet?
What is showing a company’s financial position at a specific point in time?
What is a bond, and how does it work?
What is a fixed-income investment where an investor lends money to a government or corporation in exchange for periodic interest payments and the return of the principal at maturity?
What is a credit score, and why is it important?
What is a numerical rating that measures credit worthiness, affecting loan approval and interest rates?
What is Gross Domestic Product (GDP), and why is it important?
What is the total value of goods and services produced in a country, used to measure economic health?
What is the assets equation?
What is Assets = Liabilities + Owner’s Equity?
What is the difference between mutual funds and ETFs (Exchange-Traded Funds)?
What is mutual funds are actively managed and traded at the end of the day, while ETFs trade like stocks throughout the day?
What is opportunity cost?
What is the value of the next best alternative that is given up when making a choice?
How do inflation and deflation impact the economy?
What is inflation decreases purchasing power, while deflation can lead to lower wages and economic slowdown?
What is depreciation, and why do businesses use it?
What is allocating the cost of an asset over its useful life for tax and accounting purposes?
What is diversification, and how does it reduce investment risk?
What is spreading investments across different asset types to minimize potential losses?
What is the difference between a deductible and a premium?
What is a deductible is the amount paid out-of-pocket before insurance covers costs, while a premium is the regular payment to keep coverage active?
What is the formula for calculating return on investment (ROI)?
What is (Final Value - Initial Investment) / Initial Investment × 100?)
What is the difference between cash and accrual accounting?
What is cash accounting records transactions when money is received or paid, while accrual accounting records when revenue is earned or expenses incurred?
What is the difference between a corporate bond and a municipal bond?
What is a corporate bond is issued by a company to raise capital, while a municipal bond is issued by a local government or state to fund public projects and is often tax-exempt?
How do interest rates affect borrowing and lending?
What is higher interest rates make borrowing more expensive and can slow economic growth, while lower interest rates encourage borrowing and spending?