AnswersOR-Grade 8 US HistoryMaking Spending Decisions

Making Spending Decisions — Cumulative exam Answers

25 verified answers1 views
1
Free Preview

Which two factors have the greatest influence on risk for an investment? the demand for the investmentthe duration of the investmentthe history of the investmentthe importance of the investmentthe need for the investment

A
the demand for the investment
B
the duration of the investment
C
the history of the investment
D
the importance of the investment
E
the need for the investment
2
Free Preview

What are the city council’s responsibilities regarding the budget? Select two options.determining whether to veto the proposed budgetdeleting specific lines of the proposed budgetapproving or rejecting a budget as a wholeputting the budget into effect the next fiscal yearwriting a budget and presenting it for public review

A
determining whether to veto the proposed budget
B
deleting specific lines of the proposed budget
C
approving or rejecting a budget as a whole
D
putting the budget into effect the next fiscal year
E
writing a budget and presenting it for public review
3

Cost-push inflation occurs when

A
consumers begin purchasing more goods.
B
producers need more money to make and distribute goods.
C
the government prints more money and pushes prices up.
D
consumers have more money to spend on goods and services.
4

How do bank loans help the nation’s economy?

T
They ensure consumer spending and confidence.
T
They ensure the success of new businesses.
T
They allow businesses to expand and improve.
T
They allow consumers to quickly pay off debts.
5

One advantage to buying a CD is that it

A
can be purchased for different amounts.
B
is high risk but comes with great rewards.
C
can be used for long-term retirement.
D
is high risk but backed by the government.
6

The Smith family is deciding whether to buy a new washer or a gym membership. Which is the best example of a wise family spending decision?

A
The father sees a sale on washers and decides to buy one on the spot.
B
The family meets to go over the budget and decide which item to buy.
C
The family meets to discuss desires and decides to finance both items.
D
The mother signs up for the gym and decides to get into shape.
7

"Everyone’s rights should be protected" is an argument

A
for competition.
B
against competition.
C
for regulation.
D
against regulation.
8

Does a depression always follow a recession?

Y
Yes, the trough is always considered a depression.
N
No, a depression is indicated when the recession is exceptionally long.
Y
Yes, for recovery to occur, the trough must be reached.
N
No, the economy could decline quickly and bypass recession.
9

Which statement explains a way how the Securities and Exchange Commission upholds fair business practices?

T
The SEC makes sure that banks follow federal laws.
T
The SEC tries to limit risk in the financial system.
T
The SEC generally oversees banking practices.
T
The SEC generally oversees financial advisers.
10

Which of the following would be considered a nonrenewable resource?

s
sun
w
wind
l
lumber
p
petroleum
11

At what point should consumers stop researching a product?

w
when the research costs more than the potential savings
w
when they want to make an immediate purchase
w
when the government does the research for them
w
when they know they have waited long enough to buy
12

best

b
benefits producers or consumers when taking action.
p
pushes producers or consumers to act on the government's behalf.
m
motivates producers or consumers to take action.
f
forces producers or consumers to act in a certain way.
13

Occupational Safety and Health AdministrationEnvironmental Protection AgencyFood and Drug AdministrationSecurities and Exchange Commission

A
Occupational Safety and Health Administration
B
Environmental Protection Agency
C
Food and Drug Administration
D
Securities and Exchange Commission
14

Which body manages the Fed?

t
the Appropriations Committee
t
the Federal Reserve Board
t
the Federal Open Markets Committee
t
the Economic Policy Subcommittee
15

This graph shows changes in GDP and the unemployment rate in the United States in recent years.Which statement most accurately describes the trends shown on this graph?

Question illustration
W
When GDP falls, unemployment rises.
G
GDP and unemployment have little to do with each other.
W
When GDP rises, unemployment rises as well.
G
GDP and unemployment rise at times of world crises.
16

These lists outline the details of two jobs.

Question illustration
f
family needs
j
job location
p
personal life
a
annual wages
17

How easily an investment can be exchanged for cash is known as

d
diversification.
r
risk.
l
liquidity.
r
return.
18

What role does the Federal Reserve play? Check all that apply.Regulate the banking industryLoan money to banksGive individual loansGive corporate loansTransfers any profits to the Treasury

R
Regulate the banking industry
L
Loan money to banks
G
Give individual loans
G
Give corporate loans
T
Transfers any profits to the Treasury
19

What is one way employers get employees to participate in a 401k?

A
by requiring them to participate unless they opt out
B
by requiring them to opt in if they want to participate
C
by giving them an annual pay raise
D
by giving them a signing bonus when they participate
20

What role do government agencies play in a mixed market economy?

T
They run shipping companies and other sources of distribution.
T
They own farms, factories, and other sources of production.
T
They regulate some aspects of production and distribution.
T
They employ most of the workers in the economic system.

Did you find these answers helpful?

More from this Course

Assignment
12 verified answers

How Credit Works

Quiz
10 verified answers

Making Spending Decisions

Quiz
10 verified answers

How Credit Works