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Grade 6 unit 6 MONEY

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  • Which best describes one of the ways in which the Federal Reserve has an impact on the national economy?
    issues securities taking money out of circulation
    collects more income taxes which keeps people from buying
    keeps interest low to discourage people getting loans
    Helps the economy by keeping inflation low
  • Which of the following is a bank required to do in the United States?
    Charge high fees for those that do not pay back loans
    Keep a portion of the money deposited for account holders
    Invest money in the stock market.
    Avoid lending money to people who want to start a business.
  • When you deposit money into a bank it is safe and the bank does not use it for any other purpose.
    False
    True
  • What is an economy that is based on decisions made by individuals instead of the government?
    Market Economy
    Mixed Market Economy
    Command Economy
  • Why would buying a savings bond be a great idea?
    The bank offers an account with higher interest rates.
    The U.S. stock market is adjusting to new federal regulation
    The Federal Reserve increases the interest rates for savings
    A new company offers shares of its stock for sale for the f
  • When a government makes a minimum wage law that requires a private business to pay it's employees- this is an example of ..
    Free economy
    Market economy
    Command economy
    Mixed market economy
  • What term refers to the total amount of a good or service that is available for purchase?
    Supply
    Scarcity
    Demand
    Opportunity cost
  • Which law helped prevent companies from lowering prices in order to drive out competition?
    Digital Millennium Copyright Act
    Tax Evasion Law
    Sherman Antitrust Act
    No child left behind
  • Individuals, as well as governments, must create budgets. Which of the following applies ONLY to an individual's budget?
    the income comes from job earnings
    the budget includes fixed and variable expenses
    expenses support the common good
    predict future income, losses and savings
  • Which of the following would be in a personal budget but not a government budget?
    Income from taxes
    Health care expenses
    Military expenses
    Income from a job
  • Which of the following defines how government sets a minimum or maximum price for a good or service?
    Anti-trust laws
    Price Controls
    Copyright infringement protections
    Patent Law
  • Imagine an economy without banks. Would it be more or less difficult for people to reach their financial goals?
    Less difficult, people would save their money more
    More difficult since very few people would get loans
    Less difficult, people could only spend their cash
    More difficult to save $ and get loans
  • Why might the economy be worse if financial institutions like credit card companies did not exist?
    People would most likely buy few items
    People would be unable to save their income
    NO change- just borrow money from the bank
    People would have less money due to high fees
  • A bank INCREASES money supply when it gives out a loan?
    True
    False
  • Carlo's Super Services is a small business owned by Carlos. He does not want to give up ownership in his company, but wants to raise money to expand the business. To which financial institution would Carlos turn?
    Local credit union
    Wall Street
    Stock Exchange
    Federal Reserve
  • What kind of law or regulation in the United States protects people's inventions and innovations?
    Price controls
    Anti-trust laws
    Patent Law
    Monetary Policy
  • A major hurricane shut down many coastal oil refineries, decreasing the supply of gasoline. Given the laws of supply and demand, how would you expect the price of gasoline to change?
    The price does not change
    The price goes down due to decreased demand
    The price goes up due to reduced supply
  • A "bank run" takes place when a large number of people withdraw their money at once. How might the Federal Reserve support a bank to ensure that all of the depositors would get their money back if there were a bank run
    By issuing government bonds
    By raising the prime interest rate
    By directly paying back the depositors
    By loaning money to the bank
  • What is something we benefit from due to paying our taxes that we wouldn't have if we didn't pay taxes?
    Free day care to first time mothers
    Providing food to food scarce areas of the nation
    A national military for protection
    Free health care access to anyone in an emergency
  • In a market economy what provides businesses with money for growth in exchange for shares of ownership.
    Bonds
    Interest rates
    Taxes
    Stock Market
  • What term refers to the total amount of a good or service that people are willing to purchase?
    supply
    Demand
    scarcity
    opportunity costs
  • What would the FED do if it wanted to INCREASE the amount of money in circulation?
    Decrease the interest rate- more loans
    Increase the interest rate- more loans
    Increase the interest rate- less loans
    Decrease the interest rate- less loans
  • When BackesBucks coffee company starts in Colorado and then spreads and becomes popular in WY and KS... this is an ex of..
    Cultural diffusion
    Economic creativity
    Supply and demand
    Opportunity Costs
  • When you put your money into a bank- it will loan that money out to other people for cars, etc?
    True
    False
  • If you have a dog grooming business, after COVID many people wanted dogs groomed, what do you think happened according to the law of supply and demand?
    Dogs got stinkier and had to wait for a bath
    The supply went up due to the increase in demand
    The price = same, no change in supply
    The cost went up due to the increase in demand
  • Why might it be better to save up some money and buy something later than to buy it on credit now?
    Cash is protected for stolen goods or returns
    Paying off credit debt can extend many years,
    Paying for things on credit will hurt the economy
    So you don't have to pay fees to banks for low balances
  • Carl decides to keep his money under his mattress instead of putting it in the bank. If everyone made the same decision as Carl, what might the impact be on the national economy?
    It would HURT economic growth- decrease money circulation
    It would HURT economic growth- by decreasing stocks
    It would HELP the national economy by keeping money safe
    It would not affect the economy good or bad
  • Which best explains how local taxes can support a local economy?
    They hurt local economy by taking money out of circulation
    They support science, technology and advanced investments
    They help pay for colleges and universities
    They pay for services like roads, fire safety and police
  • Wally's Wonderful Widgets is owned by its founder, Wally, and has several hundred employees who produce a number of useful goods. The company wants to publicly sell shares of ownership in the company - which institution does Wally go?
    Local bank
    Stock Market
    Federal Reserve
    Loan/ credit union
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