Quiz #9 Vocab

Question 0

Bank accounts that earn compound interest and are FDIC insured

Answer 0

Savings accounts

Question 1

Knowledge about production

Education improves human capital

Answer 1

Human capital

Question 2

Certificate of deposit

Timed deposit FDIC insured

Answer 2

CD

Question 3

Government IOUs

Pay simple interest payments twice annually

Answer 3

Treasury bonds

Question 4

Pools of Stocks not FDIC insured

Answer 4

Mutual funds

Question 5

Units of ownership in a corporation not FDIC insured

Answer 5

Stocks

Question 6

Bonds issued by firms with shaky credit ratings

Answer 6

Junk bonds

Question 7

Amount of profit paid to shareholders per share per year

Answer 7

Dividends

Question 8

Tax rates go up as income goes down to extract revenue from High wage earners
Ex: income tax

Answer 8

Progressive tax

Question 9

Tax burden is higher on lower incomes than on higher incomes

Ex: social security and Medicare

Answer 9

Regressive tax

Question 10

Property that guarantees repayment of a loan

Answer 10

Collateral

Question 11

Loan for the purchase of a home

Answer 11

Mortgage

Question 12

Being behind on loan payments

Answer 12

Delinquency

Question 13

Refusal or inability to repay a loan

Answer 13

Default

Question 14

Total amount of debt still owed to a lender

Answer 14

Outstanding debt

Question 15

When government borrowing uses up money that could be invested in private businesses

Answer 15

Crowding out

Question 16

Interest rate on money banks lend to one another

Answer 16

Federal funds rate

Question 17

Percentage of deposits banks must keep in the vault

Answer 17

Required reserves