Test 6 - Money and Investments

Question 1

What is the official currency of the European Union?

Answer 1

euro

Question 2

What is anything that is generally accepted as a means of payment?

Answer 2

money

Question 3

What is legal tender that is backed by nothing but a government’s promise?

Answer 3

Fiat Money

Question 4

What is the result when too much money is in circulation?

Answer 4

inflation

Question 5

A checking account is what type of account?

Answer 5

transaction account

Question 6

What type of account guarantees a certain interest rate and has a specified maturity date?

Answer 6

CD

Question 7

What is one of the safest ways to invest in a corporation?

Answer 7

bonds

Question 8

What determines how much an investment grows?

Answer 8

Time
Rate of Return
Amount Invested

Question 9

What commits resources to a purpose expected to provide future gain?

Answer 9

investment

Question 10

What term describes the value of the best alternative that is foregone when a different alternative is taken?

Answer 10

opportunity cost