question 1(multiple choice worth 3 points)
what is one way that financial institutions benefit the economy?
by approving increases in the federal deficit
by placing limits on the amount businesses spend
by reducing the amount people pay in taxes
by providing loans so people can open businesses
question 2(multiple choice worth 3 points)
what is one role of the federal reserve?
issue business loans directly to american companies to encourage economic growth
control the market for securities to encourage or slow economic growth
provide banking services for federal employees
approve increases to the federal deficit
question 3(multiple choice worth 3 points)
jessica thinks that everyone would be better off if financial institutions stopped issuing credit. which statement accurately supports her argument?
people would pay less in interest fees.
people would have greater protection in case of emergencies.
people would need to save for many years to buy a home or open a business.
people would support the economy through purchases of more goods and services.
question 4(multiple choice worth 3 points)
which of the following makes a true statement about the relationship between government and financial institutions?
government and financial institutions do not interact with each other.
financial institutions like the u. s. treasury must approve increases in the government deficit.
government can pass laws to limit what financial institutions can charge in interest and fees.
financial institutions like local banks must approve interest rates set by the federal reserve.
question 5(multiple choice worth 3 points)
what is credit?
money paid to a bank or other financial institution to open an account
money paid to the u. s. treasury or federal reserve bank to support the government
an arrangement where a buyer obtains a good or service and pays for it all at once
an arrangement where a buyer obtains a good or service but pays for it later or over time
question 6(multiple choice worth 3 points)
the table below lists types of credit.
types of credit
service credit
?
installment credit
credit card
which term best completes the table?
loan
interest
check
debit
question 7(multiple choice worth 3 points)
which of the following is a true statement about credit?
using a credit card is the same as cash.
credit cards are less convenient than carrying cash.
having a good credit history could be in getting a job.
the longer it takes to pay off a loan, the less interest is paid.
question 8(multiple choice worth 3 points)
what is a benefit of a person borrowing money to start a business?
the business can grow the economy and create jobs.
the business is more likely to earn greater profits faster.
the loan is less expensive than using cash.
the loan is likely to be paid off quickly.