Economics Quiz

What were greenbacks?

• Paper currency used by the Confederacy during the Civil War

• Praper currency used by the Union during the Civil War

• Copper coins used by the Confederacy during the Civil War

• Commodity money used by the Union during the Civil War

Which of the following is an example of money as a unit of account?

• Purchasing a toy for $8.99

• Lending a friend $25.00

• Opening a savings account at a bank

• Checking the price of a camera at several stores before buying it at the lowest price

Which of the following is an example of a barter system?

• Instead of paying rent, you clean house for the owner.

• Instead of paying cash for a computer, you use a credit card.

• Instead of paying the full amount for a car, you pay 10% in cash and the rest monthly.

• Instead of paying for a purchase in Mexico in pesos, you use dollars from the U.S.

Which of the following is an example of representative money?

• A fur coat

• diamonds

• gold earrings

• an IOU note

Which occurred during the Free Banking Era?

• Currency varied widely from state to state

• Repaying of loans was not closely monitored

• The Second Bank of the U.S. was created

• The dollar bill was introduced

What is a mortgage used to purchase?

• car

• real estate

• college tuition

• business expenses

What is the largest source of income for banks?

• The interest they receive from loans

• Fees charged customers for accounts

• Money deposited into savings accounts

• Special accounts like NOW accounts

Which of the following was NOT a cause of the Savings & Loans crisis of the 1980s?

• Bad loans

• The gold reserve act

• High interest rates

• Deregulation of industry

What is the purpose of the FDIC?

• To make sure banks don’t fail

• To make sure customers do not lose money if a bank fails

• To make sure banks charge a fair amount of interest on loans

• To make sure the government has enough gold to cover its expenses

What happens during a bank run?

• The government orders a bank to close

• States charter more banks than needed

• The price of gold suddenly increases

• More customers withdraw money than the bank has on hand