Econ Chap 13

14 October 2022
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13.1 Which of these is a characteristic of certificates of deposit (CDs)?
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They last for a set period of time.
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13.1 Sara would like to open a bank account. What will she need to do this? Check all that apply.
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identification card money to start the account proof of address
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13.1 Which of these is an advantage unique to checking accounts?
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Checking accounts allow used checks to act as receipts.
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13.1 Glenn and Maggie own a regional chain of juice bars and are looking to expand in the coming year. They already have fifty shops, but they know they will need a loan to reach their goal of one hundred twenty five shops. Which type of banking institution is most suitable for Glenn and Maggie's business?
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a commercial bank
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13.1 Karina keeps excellent records and always knows precisely how much is in her bank account. However, when she receives her bank statement, she's surprised to see that she has been charged a $5.00 overdraft fee. After reviewing her well-kept records, she cannot find anything that is incorrect. Which would be the best action for Karina to take?
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Check her records against her bank statement.
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13.1 What does reconciling an account involve?
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checking one's financial records against the bank's
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13.1 When Seb reconciles his accounts, what is the first step he should take?
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Confirm his records are accurate and include all transactions.
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13.1 In which situation would a certificate of deposit (CD) be the best banking choice?
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Hafsa wants a guaranteed return, and won't need the money for several years.
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13.1 Sofia has saved $10,000. She wants to be sure that she is earning interest on her money and can add to her savings. She also wants to be able to access her money if the need should arise. Which type of account is most suitable for Sofia's needs?
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a money market account
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13.1 Many checking accounts offer multiple ways of accessing money in addition to checks. Which of these can be used to access money in a checking account?
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debit card
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13.2 Jana wants an account with the lowest fees. Which checking account would be best for Jana?
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Account B
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13.2 James wants an account with the lowest fees. Which checking account would be best for James?
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Account A
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13.2 Ming made a car insurance payment of $122.50. He'll use the check register to record his transaction. What will be his new balance?
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679.60
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13.2 Which checking account would be best for Becca?
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Account B
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13.2 Beth withdrew $35 from her checking account. In which column should she record the $35 withdrawal?
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Debit
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13.2 Which checking account would be best for Irma?
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Account A
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13.2 Which checking account would be best for Kylie?
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Account A
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13.2 Selma deposited a paycheck for $378.42. She'll use the check register to record her transaction. What will be her new balance?
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$3,014.83
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13.2 Sarah transferred $450.00 from her savings account to her checking account. She'll use the check register to record her transaction. What will be her new balance?
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700.05
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13.2 Wilbur wants a checking account with the lowest fees. Which checking account would be best for Wilbur?
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Account A
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13.3 Someone who diversifies investments is more likely to
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offset their losses with gains.
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13.3 Which of these investments may be long term? Check all that apply.
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mutual funds bonds retirement funds commodities
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13.3 Which statements apply to a certificate of deposit (CD)? Check all that apply.
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It can be purchased from a banking institution. It can be purchased for almost any amount.
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13.3 Long-term investments are most commonly used to save money for
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retirement
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13.3 Which are examples of high-risk investments? Check all that apply.
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stock mutual fund
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13.3 What is the relationship between risk and return?
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A higher risk often means a higher return.
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13.3 What might convince an investor to buy stock or mutual funds?
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news that a company is about to release a promising product
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13.3 Which investment has the least liquidity?
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corporation
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13.3 What does the information demonstrate about Alex's investments?
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He most likely would have benefited by diversifying.
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13.3 What is the definition of risk?
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possibility of losing money on an investment
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13.4 If the Federal Reserve decreased the money supply, what would the effects be? Check all that apply.
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increased interest rates decreased borrowing decreased investing
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13.4 Which statement best describes how inflation affects the value of investments over time?
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It decreases the value of money.
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13.4 Compared to high-risk investments, low- and medium-risk investments are in higher demand because they
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are considered safer.
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13.4 If an investor has a $5,000 pretax return, the state tax rate is 4.5%, and the federal tax rate is 22.0%, what is the real investment value?
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$3,675
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13.4 Changes in monetary policy have the greatest effect on
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demand for investments.
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13.4 Which statement is true of the relationship between risk and return?
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The greater the risk, the greater the potential return.
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13.4 Taxes are often owed on
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investment returns.
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13.4 Interest rates generally reflect
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the level of risk in an investment.
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13.4 Approximately how much of the initial investment's value would be lost after 15 years at 3% inflation?
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40%
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13.4 policy involves government changes to spending or taxation to affect the economy.
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Fiscal