AnswersCHS EconomicsInvesting and Financial Markets

Investing and Financial Markets — Unit test Answers

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Look at the table below showing an example of a checkbook ledger.

Question illustration
A
Adrienne forgot to include the $2.00 ATM transaction fee.
B
Adrienne did not use $320.00 as her starting balance.
C
Adrienne deducted $23.50 from her balance instead of $32.50.
D
Adrienne did not enter her ATM withdrawal correctly.
23

Which is an example of a short-term investment?

A
savings bond
B
savings account
C
retirement fund
D
checking account
24

Emily is deciding whether to buy the same designer jacket her friends have. The jacket is much more expensive than a similar one from a lesser-known brand.Which questions should she consider before she buys the jacket? Check all that apply.

A
Is advertising influencing her?
B
What are her motivations?
C
Has she compared prices?
D
Is she buying at the right time?
E
Will her sister like the jacket too?
25

Which is the best question for Joe to ask himself when deciding whether to open a checking or savings account?

A
Is there an ATM near my home or work?
B
Does the bank offer free checking?
C
If I need a loan, will they give it to me?
D
Why am I opening a bank account?
27

[BLANK]

A
increase
B
limit
C
stop
D
maximize
28

The graph shows the percentage changes in the investment rate and the gross domestic product (GDP) between 2008 and 2012.

Question illustration
can show if the economy is growing or shrinking.
Option
occur only when the economy is shrinking.
Option
occur only when the economy is growing.
Option
have no relation to changes to the GDP.
Option
29

The level of investment in markets often indicates

A
the stability of the government.
B
the state of the economy.
C
the success of individual companies.
D
the stability of a currency.
30

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A
for a limited time
B
two bottles for $29.95
C
our proven supplement
D
no other diet pill offers
31

Which best describes why investing can be such a challenge?

A
It is impossible to ever earn a return on investments.
B
Investing always requires millions of dollars up front.
C
There are no guaranteed investments.
D
Most investments are insured by the government.
32

Credit unions differ from retail banks because they are

A
owned by their members.
B
owned by their employees.
C
owned and managed by private corporations.
D
owned by shareholders who purchased stock.
33

Which is an example of a financial change that would require budgetary consideration?

A
paying monthly rent
B
purchasing furniture
C
saving a certain amount
D
buying a monthly bus pass

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