Which of the following statements BEST describes the problem that is humorously illustrated by this cartoon?
The item that one person wants to barter may not be what another person wants to receive.
Which of these is the best example of commodity money?
salt
These shells were once used as money. The characteristic of money that is most similar to our currency today is
portability
Why did Antifederalists oppose a centralized banking system?
They believed the wealthy would use the centralized bank to unfairly gain wealth and power.
What is one effect of a nation being on the gold standard?
The nation's money supply is limited.
Read the quote below. Why did the sight of money make the customers less fearful?
"Upon approaching the town (with a bank whose customers had withdrawn a lot of money) the pilot guided the plane low over the main street to dramatize its arrival and then l
They realized the bank wouldn't run out of money.
What will the principal at the end of the third year be?
$546.36
How does the principle of compound interest help encourage investment?
Compound interest means savers earn more on their investments.
Which of the following financial institutions offer checking accounts?
commercial banks
What term describes a balanced group of investments, similar to the one shown here?
diversified
Why would an investor choose a group of investments like the one shown below rather than putting all of her money in a single stock?
The investor would be less likely to lose money if one component performs poorly.
What do you think this person's facial expression would be like if she were talking to somebody with a BBB rating?
It would be negative.
In which year on the graph would junk bonds have been most likely to attract investors?
2008
If you were buying a bond, which of the following characteristics would you most likely be looking for?
high coupon rate
Investors traded the largest number of shares of which of these stocks?
Microsoft Corp.
The Dow Jones Industrial Average roughly tripled in value from 1980 to 1990. By about how much did it increase from 1990 to its highest point on the graph?
It has quintupled.