Question

1 . What statement about primary and secondary markets is true?

Answer 1

2. A day trader tries to make a profit by?

3. What was one cause of the Savings and Loan crisis in the 1980s?

4. How does the risk of a money market mutual fund compare with that of a savings account?

5. Your pay stub from your job deducts money for FICA. What does this mean?

6. About half of all federal discretionary spending goes towards

7. What is usually the relationship between a bond’s rating and the interest rate a company pays to buyers?

8. Jorge has just earned $1,000. He would like to invest the money in the stock market. What should he do?

9. As part of the nation’s recovery from the Great Depression of the 1930s, the banking system was reformed in which of the following ways?

10. Why is the federal income tax a progressive tax?

Answer 2

11. Which of the following has contributed to a recent banking crisis?

12. Which of the following is an example of money as a unit of account?

13. Why are coins easier than gold bars to use as money?

14. How is the federal income tax a progressive tax?

15. What is the main source of tax revenue for local governments?

16. Why is representative money more useful than commodity money?

17. In which of the following situations would someone have to pay a gift tax?

18. What does a mutual fund do?

19. Your neighbor asks you to invest $500 in her new business. You want to invest but are concerned because your neighbor has not had any business experience. How can you offset your risk?

20. What happens to the percentage of an income that is taxed when income rises and the tax is a proportional one?