Financial literacy exam Study guides, Class notes & Summaries

Which of the following does the Federal Reserve use to regulate the nation's money supply? C: Monetary policy - ANSWER The Federal Reserve uses monetary policy to regulate the nation's money supply. Monetary policy is directed at expanding or contracting the supply of money and credit in the U.S. economy. In theory, if there is too little money in circulation, consumers will spend less, interest rates will be high, and unemployment will rise. In this situation, the Fed can deliberately i...

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The next best choice you could have made, but did not make. - Opportunity Cost Some opportunity costs for the Robinsons. - Having less time to relax, less time to go out to dinner, and less money to spend. Physical, intellectual, and creative talents of people. - Human resources Gifts of nature. Includes, water, forests, natural gas, oil, and climate. - Natural resources Goods that are used to produce other goods and services. Includes, tools, factories, equipment, and office buildings. - ...

Economics is the study of how individuals and societies satisfy their unlimited wants with limited resources. a. True b. False - correct answer a. True When rising interest rates make borrowing more costly, how does it affect the business cycle? a. It causes consumers to consume more and increases demand. b. It lowers demand, decreases household purchases, and promotes contraction. c. It causes conflicts overseas and reduces a nation's ability to import goods. d. It increases produ...

Personal Financial Literacy Exam With Complete Solutions.

One way that leads a person to earn additional income is for the person to - Answer-Increase her knowledge or improve skills Entrepreneurs who start a new business with the hope of making a profit are - Answer-Accepting the risk of financial loss if unsuccessful Income can be earned or unearned. Which of the following is an example of unearned income? - Answer-Interest from bank accounts Which of the following terms is correctly matched - Answer-Gross income- salary before taxes What stra...

Financial Literacy Exam 1 With Properly Answered Questions

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Financial Literacy Exam Questions With Complete Solutions Already Passed

Financial Literacy Exam Questions and Answers