Ch 8.2 Money, Money
What counts as money?
Currency
Federal Reserve
The rule of doubling your money is called ____.
Rule of 72
One person owns a business is called ___.
sole proprietorship.
What kind of money is backed only by credit of the government?
Fiat money
What are institutions that deal with money and act as a financial intermediary called?
Banks
If the annual return on investment is 4%, how many years will take to double your money?
18 years
A business is counted as a person and exists in more than one country is called ____.
Commodity money
When an economist wants to use "cash," the economist refers to it as ____.
liquidity
The safest kind of bond is _____.
treasury bond.
What type of business has limited liability?
Corporation
A person buys a product with currency. What function of money was illustrated?
Medium of exchange
The highest return account at a bank is a _____.
time deposit.
Many profitable companies pay ____ to shareholders.
dividends
Corporation
A person sees two different prices and determines the worth of each product. Which function of money was illustrated?
Standard of value
Loans taken out to finance real estate is called ____.
Mortgage
Lower quality bonds are called ____.
junk bonds.
Partnerships.
Which job level historically has paid its workers the most?
Professional