Unit 6 Test 2022

Often thought of as useless hunks of rock or ice floating around space, asteroids also have one giant, scary stigma attached to them: They could completely destroy our planet. But some asteroids are also rich sources of precious minerals, like iron, platinum, or gold. It is thought that almost 10,000 asteroids near Earth have incredible mineral potential, which gives more weight to the thought that our global debt could, in fact, be wiped out. And considering the already high demand for such minerals, especially given the outspreading of smartphones, computers, and as other technologies continues, the desire for asteroid mining is even more alluring.                       

 - Alexa Erickson, Collective Evolution (February, 2017)

According to the excerpt, world debt can be eliminated by-

• Attaining commodity money in order to pay off financial obligations

• Manufacturing more electronics for people to purchase for themselves

• Returning financial favors that were acquired during the Space Race

• Exploring and inspiring the public to make donations to space programs

       If we did not have money, we would have to _____, or trade for something of equal worth.

• Smelt

• Debt

• Currency

• Barter

Influencing the economy by changing the reserve requirement or the Discount Rate is called-

• Easy Money

• Monetary Policy

• Discount Policy

• Fiscal Policy

carry out Fed policy and oversee banking within its district.

• The Fed

• District banks

• Trade ambassadors

• Financial Institutions

At the very top sits a Board of Governors. This includes seven governors who are appointed by the President and confirmed by the Senate. Just below, rests a network of 12 banks and 24 branches.

The excerpt above describes the-

• Strategy to maintain a balance of trade

• Structure of the Federal Reserve System

• Organization of the Financial Aid Center

• Process used to pass new regulations

How do Private Financial Institutions make a profit?

• They don’t make a profit

• Charging interest on loans

• Producing extra money

• The Government pays them

Except for some retirement accounts, the FDIC insures all accounts in the same name at each bank up to an amount of-

• $2,500,000

• $250,000

• $25,000

• $2,500

Where do Banks get the money they use to loan out to others?

• The Savings of Depositors

• Other Banks

• The Federal Reserve

• The Government

What is Fiat currency?

• A currency that is declared a currency by the government, although not backed by a physical commodity

• A currency used to purchase

• A currency backed by a physical commodity

• Currency backed by a gold standard

Which of the following explains what would happen if a financial institution lowered interest rates?

• Businesses would borrow more

• Businesses would borrow less

• Businesses would borrow the same amount

• Businesses would borrow from foreign banks