Question

Pedro is thinking about buying U.S. savings bonds. However, there is a financial institution controlled by the government that may actively discourage Pedro from buying bonds. How and why would such a financial institution do this?

Stocks on Wall Street may be doing quite well, encouraging Pedro to invest there instead of buying securities.
The U.S. Treasury might refuse to sell securities to Pedro because it does not have any bonds to sell.
The Federal Reserve could raise the price of securities, to encourage Pedro to buy other things instead.

Answer 1

Banks might raise their interest rates, encouraging Pedro to deposit his money there instead of buying securities.
Question 2 (Multiple Choice Worth 3 points)

(American Money LO 7 MC)

Lynn is at a store and wants to buy a new backpack that costs $55. She only has $35 with her, but she has the rest at home. Lynn also has a credit card that does not charge her any interest if she pays the balance in full by the end of the month. Why might Lynn want to wait until she has $55 in cash at the store to purchase the backpack, instead of using her credit card?

Using a credit would cause the store to lose money, because even if she pays back her bill in full, she will still need to pay the credit card company additional dollars for the convenience of borrowing money.
Using cash would cause the store to lose a large amount of money, because credit card companies offer incentives to stores based on the number of people who use their card.
She might forget to pay the credit card bill, which would make her purchase more expensive due to interest payments and late charges.
She would likely have to pay more than $55 at the time of purchase for the convenience of using her credit card.

Answer 2

Question 3 (Multiple Choice Worth 3 points)

(American Money LO 4 MC)

Is a bank more likely to increase or decrease the amount of money in circulation?

A bank greatly increases the amount of money in circulation. It prints new money, which it is able to loan to new business and other individuals in need of loans.
A bank will increase the amount of money in circulation because it can help transfer money from people who want to save money to people who are going to spend it.
A bank has no effect on the amount of money in circulation. A bank does not print new money or dispose of old money.
A bank will decrease the amount of money in circulation because people who deposit money in banks are not spending it.
Question 4 (Multiple Choice Worth 3 points)

(American Money LO 4 MC)

Which of the following is a bank required to do in the United States?

Avoid lending money to people who want to start a business
Invest money in the stock market
Keep a portion of the money deposited available to account holders
Lend money to people regardless of how likely they are to pay it back

Answer 3

give me asec or more

Answer 4

Question 5 (Multiple Choice Worth 3 points)

(American Money LO 1 LC)

Some consumers have limited money to spend on a large supply of potential products. The idea that a consumer needs to pick how to use a scarce resource is known as

demand
choice
scarcity
opportunity cost
Question 6 (Multiple Choice Worth 3 points)

(American Money LO 2 LC)

As a young teen, which entrepreneur started a cookie company with limited funds?

Vera Wang
Oprah Winfrey
Joseph Unanue
Debbie Fields Rose

Answer 5

Question 7 (Multiple Choice Worth 3 points)

(American Money LO 2 MC)

Antonio's is the only restaurant in town that serves Italian food. A new Italian restaurant opens down the street from Antonio's. In a market economy, what is the most likely effect of a competing restaurant opening in the neighborhood?

The new restaurant will charge higher prices than Antonio's because they need to pay off new business loans.
Both restaurants will increase their prices to make up for the customers who chose to visit the competing restaurant.
Customers will benefit from better products and lower prices as the restaurants complete for their business.
Antonio's will stop spending on advertising or offering coupons to customers to protect their profits.
Question 8 (Multiple Choice Worth 3 points)

(American Money LO 2 MC)

The federal government wants more people to buy hybrid or electric cars. Currently, they are more expensive than cars fueled by gas or diesel. In a market or mixed economy, what might the government do to benefit the car manufactures and encourage people to buy hybrid or electric cars?

Set a maximum price that a company can charge for a hybrid or electric car
Create competition by making their own hybrid and electric cars
Fund companies to do research on the creation of more fuel efficient cars
Create incentive to buy hybrid or electric cars by reducing the sales tax

Answer 6

Question 9 (Multiple Choice Worth 3 points)

(American Money LO 1 MC)

A major hurricane shut down many coastal oil refineries, decreasing the supply of gasoline. Given the laws of supply and demand, how would you expect the price of gasoline to change?

The price will not change.
The price will go down because the supply has increased.
The price will go up because of the reduced supply.
The price will go down because there will be less demand for it.
Question 10 (Multiple Choice Worth 3 points)

(American Money LO 3 MC)

In what way do mixed and market economies support the ideals of democracy?

Mixed and market economies elect a few farmers and local leaders to choose which goods and services to produce.
Mixed and market economies do not produce more goods or services than what people need to survive.
Mixed and market economies allow all economic decisions to be made by a few well-qualified government officials.
Mixed and market economies protect individuals' ability to make their own economic decisions.

Answer 7

The first one, Savings bonds are securities issued by the US Treasury Department. They provide funding dollars for the US Government. In return for using your money, the government pays you interest. This discussion covers series EE and I savings bonds.

Savings bonds used to be a major offering at banks and credit unions - Nowadays - These institutions still redeem bonds BUT they don't sell them anymore!

The U.S. Treasury might refuse to sell securities to Pedro, because it does not have any bonds to sell. <- your answer

Answer 8

The second one, Using cash would cause the store to lose a large amount of money, because credit card companies offer incentives to stores based on the number of people who use their card. Using a credit would cause the store to lose money, because even if she pays back her bill in full, she will still need to pay the credit card company additional dollars for the convenience of borrowing money.

Answer 9

is the 1st right?

Answer 10

The third one, A bank will increase the amount of money in circulation because it can help transfer money from people who want to save money to people who are going to spend it.
Why?
Because when you put money in the bank, that doesn't go in a special vault just for you. It goes to other people who take money out of the bank to spend on every day things. If people were holding their money in the bank, and money wasn't being taken out. It would hurt our economy severely! (B)

Answer 11

@lovesvd10 yes first one is right.

Answer 12

For the fourth one, -Alright, it can't be the last one, because a bank isn't required to lend people money regardless of how likely they are to pay it back. That's why you have interviews to get loans, to see how likely you'll pay the money back.
-Banks aren't required to invest money in the stock market. So you can rule that one out.
So that leaves A and C, a Bank isn't REQUIRED to avoid people who want to start a business.
So C would be your best bet!

Answer 13

For the fifth one, Scarcity. the state of being scarce or in short supply; shortage.
"a time of scarcity"
synonyms: shortage, dearth, lack, want, undersupply, insufficiency, paucity, scarceness, scantness, scantiness, meagerness, sparseness, poverty; More

Answer 14

1.a
2.b
3.b
4.c
5.a
6.d
7.d
8.a
9.c
10.d
11.b
12.d
13.a
14.b
15.d
16.d

Answer 15

In the United States, people pay taxes so government can provide services to the people. What is one benefit of the government providing services instead of allowing the free market and private businesses to do so?

Government can provide services that would not be practical for private businesses to provide, such as a national military.
Government is generally more efficient at providing goods and services than private businesses.
Businesses should not provide services because a free market would be more efficient.
Businesses make better decisions than government about what services are in the best interest of society as a whole.
Question 12 (Multiple Choice Worth 3 points)

(American Money LO 4 MC)

Wally's Wonderful Widgets is owned by its founder, Wally, and has several hundred employees who produce a number of useful goods. The company wants to publicly sell shares of ownership in the company in exchange for money to expand business. To which economic institution would Wally's Wonderful Widgets turn?

Stock market
Federal Reserve
Local credit union
Local bank
Question 13 (Multiple Choice Worth 3 points)

(American Money LO 7 MC)

Imagine an economy without banks. Would it be more or less difficult for people to reach their financial goals?

More difficult, because it would be much harder for people to save money or obtain loans without banks.
More difficult, because it would be easier for people to obtain loans without banks getting in the way.
Less difficult, because without banks people would be less likely to save money.
Less difficult, because people would not have to worry about banks charging unnecessary fees.
Question 14 (Multiple Choice Worth 3 points)

(American Money LO 5 MC)

Which statement regarding the impact of the federal government's budget on the personal budgets of citizens is true for the greatest number of citizens?

The federal government's budget does not impact peoples' personal budgets.
The federal government's expense is a source of income for personal budgets.
The people who construct the federal government are also responsible for creating citizen's personal budgets.
The federal government's revenue is an expense of personal budgets.
Question 15 (Multiple Choice Worth 3 points)

(American Money LO 3 LC)

Which law helped prevent companies from lowering prices in order to drive out competition?

No Child Left Behind Act
Alien and Sedition Acts
Digital Millennium Copyright Act
Sherman Antitrust Act
Question 16 (Multiple Choice Worth 3 points)

(American Money LO 2 MC)

Please use the map below to answer the following question:

Map of the United States with state names.
© Creative Commons

Based on your knowledge of cultural diffusion, to which state would a New York-based business likely expand?

The next location would likely be in Texas because of its large size.
The next location would likely be in Illinois because Chicago borders Lake Michigan.
The next location would likely be in Pennsylvania because it is close to New York.
The next location would likely be in California because of its large population.

Answer 16

Debbie Fields Rose for the sixth one started a cookie company in her young entrepreneur years.

Answer 17

ok

Answer 18

Seventh one, Both restaurants will increase their prices to make up for the customers who chose to visit the competing restaurant. (B)

Answer 19

put the letter next to the number make it easier

Answer 20

The eighth one, I'm really confused on. Sorry. Go with what you think. I assume eighth one is probably A......
9: The price will go down because there will be less demand for it. (D)
10: Mixed and market economies elect a few farmers and local leaders to choose which goods and services to produce. (A)
11: Government is generally more efficient at providing goods and services than private businesses. (B)
12: Stock market
14: The federal government's expense is a source of income for personal budgets. (B)
16: The next location would likely be in Illinois because Chicago borders Lake Michigan. (B)
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For the rest I don't quite know (13,15,and 8). I hope this helps I tried :( Sorry cutie. Let me know if you need anymore help.
Have a wonderful day (: @lovesvd10

Answer 21

thanks! @DatChinookGuy