finance midterm

When did economies begin? ancient times
What are taxes that are levied on imports and/or exports? tariffs
What is the main characteristic of a laissez-faire economy? a lack of regulations
Individuals play what role in the economy important
Capitalism is characterized by which of the following? A market economy, profits, and privately owned businesses.
In the United States, which agency oversees workplace safety and ensures that businesses comply with safety and health regulations to protect workers and consumers? occupational heath and safety administration
In a capitalist system, what are the goods and tools that are used to make products? capital
Anti-trust laws or suits may be used to break up which of the following? monopolies
Privately owned businesses are common in which type of economy? capitalist economies
Characteristics of Market economies are what? Economic freedom, economic incentives, and competition.
What are companies that have complete control over a particular product or industry? monopolies
Societies did not develop monetary commodity systems until the mid-nineteenth century. false
Capitalism is an example of a planned economy. true
Tariffs are used to encourage global trade between two countries. false
What happens in one sector of the economy often affects other sectors of the economy. true
What is the governmental allocation and collection of money within the state? fiscal policy
What is true about economic resources? limited
Governments collect money through which of the following? taxes, bonds, and selling resources
In economic terms, marginal is another word for which of the following? additional
A balanced economy generally has which economic stance? neutral
The New York Stock Exchange is an example of what type of stock market? physical
Why do most companies sell shares of stock? to generate income
What is a sort of auction for stocks in which traders verbally submit their offers? open outcry
What is one economic principle? resources are limited
When talking about economic resources, capital refers to which of the following? tools and machinery
Example of an economic resource entrepreneurial ability
Entrepreneurial ability refers to the human resource of finding resources, making business decisions, and creating new products. true
Stock market crashes have relatively little effect on the overall economy. false
The NASDAQ features an open outcry. false
While we talk about the stock market as if it were one big entity, the reality is that there are many stock markets around the world. true
What is the first step in financial planning? analyzing the current situation
What is true about personal financial planning? your goals will change
Interest rate risks would be most relevant to what purchase? a house
What is true about emotions and financial decisions? leave emotions out
What is NOT one of the three primary resources that families have to reach financial goals? education
What is a disadvantage of shared decision-making? create competition
About what percentage of lottery winners end up with financial troubles? 70%
What is true about financial planning? reviewed regularly
There are two the means for achieving financial goals–you either need to increase your savings or reduce your spending. true
Shared decision making is always a positive strategy to take. false
Personal financial planning is the process of creating and achieving financial goals true
The FDIC in the United States insures some financial accounts up to what amount? 250,000
Web-only financial institutions do not have which of the following? physical locations
Mutual savings institutions are owned by who? members of the institution
An example of a nondepository financial institution is which of the following? brokerage firms
Brokerage firms make their profits primarily in which of the following ways? fees or commissions on transfers or sales
What is true about certificates of deposit? The money has to remain in the account for a specified period of time.
How many government agencies does the United Kingdom have to oversee the financial industry? one
Commercial banks are funded through which of the following? customer deposits
Mutual fund companies are what type of companies? investment
Accounts in non-depository institutions are almost always insured by the government. false
In the United States, all financial institutions are required to conduct business at a physical location only. false
Check cashing businesses do not require that an individual be an account holder; they will cash any valid check. true
The government provides no oversight of financial institutions in most countries. false
401k accounts are those that are partially funded by employers using a portion of wages before tax. true
Credit unions are non-profit organizations true
The United States began collecting federal income tax in which year? 1913
Which country use tax brackets as part of their tax system? Australia, Canada, South Africa
All sources of income is also known as which of the following? gross income
In a progressive tax system, who pays a greater proportion of their income in taxes? those with high income
Which of these is a common tax form in the United States? 1040EZ
Which type of audit occurs at your home or business? field
Taxes are used for which of the following? Maintaining roads, social services, and parks and public cultural sites
The United States has a regressive tax system. false
Your adjusted gross income is your gross income minus specific deductions true
All individuals in the United States file their taxes under the same status. false
In the United States, if someone is unable to file by the tax deadline, they can file an extension, but any taxes due must still be paid by the deadline to avoid penalties. true

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