Name: Score:
79 Multiple choice questions
Term 1 of 79
Read the scenario. For three years in a row, the federal government's expenditures exceeded its
revenue. As a result, the federal debt grew by $4 billion, and the interest payment on the federal
debt increased substantially. Which are true about the scenario? (Select all that apply.)
To provide for those who cannot afford food, shelter, or medical care.
People who earn less money simply cannot afford to pay for some benefits.
Patient Protection and Affordable Care Act.
The federal government's deficit spending led to an increase in the federal debt, The
federal government's increase in debt led to an increase in interest payments.
Term 2 of 79
Why is it important that money stores its value? (Select all that apply.)
To decrease the level of aggregate demand to slow rising inflation.
Provide loans directly to consumers, purchase installment contracts from merchants.
So that buyers know what their money will buy, So that sellers will accept it as payment.
People can deposit checks without visiting a bank, banking apps can be set to alert account
holders of low balances.
,Term 3 of 79
Which accurately describes differences between state and local government expeditures?
Businesses would spring up to meet the needs of those on the base.
Local government expenditures are entirely funded by the federal government.
Public welfare programs at the local level make up a small part of the budget compared to
the state level.
The federal government's deficit spending led to an increase in the federal debt, The
federal government's increase in debt led to an increase in interest payments.
Term 4 of 79
What is one way credit unions differ from commercial banks?
Commercial banks are non-profit organizations, commercial banks have membership
requirements, commercial banks are owned by their customers.
Credit unions do not exist to make a profit.
Commercial banks focus on community development, commercial banks offer free financial
education, commercial banks have limited branch locations.
Credit unions offer higher interest rates on savings accounts, credit unions have more atms
nationwide, credit unions provide investment banking services.
Term 5 of 79
What is the purpose of an expansionary fiscal policy?
To promote free trade agreements and boost exports.
To decrease taxes and reduce government spending to slow down economic growth.
To increase the level of aggregate demand to grow the economy.
To stabilize prices and control inflation in the economy.
, Term 6 of 79
What reasons would people have to promote social welfare?
Social welfare is a burden on the economy and should be eliminated.
Providing social welfare encourages self-sufficiency and independence.
To provide for those who cannot afford food, shelter, or medical care.
Promoting social welfare leads to laziness and dependency.
Term 7 of 79
How does the national debt impact private investors? (Select all that apply.)
The rate remains the same under a flat tax, whereas the rate changes under a VAT.
The national debt causes a crowding-out effect and increases interest rates for private
borrowers, The national debt requires the government to increase revenue streams and
potentially increase taxes.
The government allocates discretionary spending for space programs, The government
allocates discretionary spending for national defense, The government allocates
discretionary spending for national parks.
Government spending can drive up prices for everyone, Government borrowing can crowd
private investors out of the lending market.
Term 8 of 79
What are the functions of a finance company? (Select all that apply.)
Provide loans directly to consumers, Purchase installment contracts from merchants.
Assist in tax preparation for individuals, conduct market research for companies.
Offer insurance products to businesses, manage real estate investments.
Facilitate international trade transactions, develop software applications for clients.
79 Multiple choice questions
Term 1 of 79
Read the scenario. For three years in a row, the federal government's expenditures exceeded its
revenue. As a result, the federal debt grew by $4 billion, and the interest payment on the federal
debt increased substantially. Which are true about the scenario? (Select all that apply.)
To provide for those who cannot afford food, shelter, or medical care.
People who earn less money simply cannot afford to pay for some benefits.
Patient Protection and Affordable Care Act.
The federal government's deficit spending led to an increase in the federal debt, The
federal government's increase in debt led to an increase in interest payments.
Term 2 of 79
Why is it important that money stores its value? (Select all that apply.)
To decrease the level of aggregate demand to slow rising inflation.
Provide loans directly to consumers, purchase installment contracts from merchants.
So that buyers know what their money will buy, So that sellers will accept it as payment.
People can deposit checks without visiting a bank, banking apps can be set to alert account
holders of low balances.
,Term 3 of 79
Which accurately describes differences between state and local government expeditures?
Businesses would spring up to meet the needs of those on the base.
Local government expenditures are entirely funded by the federal government.
Public welfare programs at the local level make up a small part of the budget compared to
the state level.
The federal government's deficit spending led to an increase in the federal debt, The
federal government's increase in debt led to an increase in interest payments.
Term 4 of 79
What is one way credit unions differ from commercial banks?
Commercial banks are non-profit organizations, commercial banks have membership
requirements, commercial banks are owned by their customers.
Credit unions do not exist to make a profit.
Commercial banks focus on community development, commercial banks offer free financial
education, commercial banks have limited branch locations.
Credit unions offer higher interest rates on savings accounts, credit unions have more atms
nationwide, credit unions provide investment banking services.
Term 5 of 79
What is the purpose of an expansionary fiscal policy?
To promote free trade agreements and boost exports.
To decrease taxes and reduce government spending to slow down economic growth.
To increase the level of aggregate demand to grow the economy.
To stabilize prices and control inflation in the economy.
, Term 6 of 79
What reasons would people have to promote social welfare?
Social welfare is a burden on the economy and should be eliminated.
Providing social welfare encourages self-sufficiency and independence.
To provide for those who cannot afford food, shelter, or medical care.
Promoting social welfare leads to laziness and dependency.
Term 7 of 79
How does the national debt impact private investors? (Select all that apply.)
The rate remains the same under a flat tax, whereas the rate changes under a VAT.
The national debt causes a crowding-out effect and increases interest rates for private
borrowers, The national debt requires the government to increase revenue streams and
potentially increase taxes.
The government allocates discretionary spending for space programs, The government
allocates discretionary spending for national defense, The government allocates
discretionary spending for national parks.
Government spending can drive up prices for everyone, Government borrowing can crowd
private investors out of the lending market.
Term 8 of 79
What are the functions of a finance company? (Select all that apply.)
Provide loans directly to consumers, Purchase installment contracts from merchants.
Assist in tax preparation for individuals, conduct market research for companies.
Offer insurance products to businesses, manage real estate investments.
Facilitate international trade transactions, develop software applications for clients.
