Unit 2 Macroeconomics Test

What are goods?

• Things that are well done.

• Physical objects that people can buy.

• Jobs or work that people do for others to help them.

• Things we want but not need.

What are services?

• Jobs or work that people do for others to help them.

• Physical objects that people can buy.

• Things people want but don't need.

• Large items you can buy.

A diagram that shows how money moves in an economy is called ___________. It explains how people (households) and businesses trade with each other.

What is interest?

• The money you earn or pay when you borrow or save money.

• The price a business asks for a product.

• The price a consumer is willing to pay for a product.

• The amount of money a customer deposits in a bank.

What is a boycott?

• A good created only for males.

• Refusing to buy or use a good or service or to show the business you disagree with their actions.

• Where two or more consumers combine to get a better price on a good or service.

• A diagram that shows how money moves in an economy.

A geographical area without a bank is called ___________.

Banks benefit the community by loaning money to individuals and businesses for projects like building homes. The money is income for the people working on these projects. The income is used by them for other goods and services. The effect from all these purchases creates additional jobs and income which is spent and saved in the community.

• True

• False

Banks do NOT want to earn a profit.

• True - They do not.

• False - They do want to earn a profit.

What are the types of interest in banking?

• Money that is paid to customers.

• What people want to understand about money.

• Money that is charged to customers that take a loan from the bank.

• Interest that is paid to customers AND interest that is charged to customers that take a loan from the bank.

What is a minimum balance fee that is charged by banks?

• The amount of interest a bank will pay its customers.

• The fee a bank will charge to open an account.

• The fee a bank charges if a customer does not have a certain required amount of money in their account.

• The interest a bank charges for its loans.