Period:____
Chapter 11
8. What are the THREE aspects one must always consider when investing AND what would
you want in an ideal situation (high or low)?
9. What are the THREE major stock markets in the United States?
14. When investing in the stock market, one should do so for the __________________ term.
15. In terms of risk, reward, and liquidity- Which one must you give up for stocks?
16. What are mutual funds?
17. What is a bond?
18. What are the THREE types of bonds? Mark which bond is the riskiest and which bond is the safest.
20. In terms of risk, reward, and liquidity- Which one must you give up for bonds?
21. What are the THREE rules to building wealth?
Chapter 12 & 13
27. What is considered a typical (normal) unemployment rate?
28. What is cyclical unemployment?
29. What is frictional unemployment?
30. What is structural unemployment?
31. What is seasonal unemployment?
32. Define the term- GDP (Gross Domestic Product).
33. What does CPI measure?
34. What are the TWO major ways we utilize GDP?
35. Why do we not include certain things when we are computing GDP?
36. What is the equation when computing GDP?
37. What is inflation?
38. What happens to the value of the dollar when inflation occurs?
39. What is the business cycle based on?
40. Draw and label the business cycle.
41. What happens during the expansion/recovery phase of the business cycle?
42. What happens during the peak phase of the business cycle?
43. What happens during the recession/contraction phase of the business cycle?
44. What happens during the trough phase of the business cycle?
45. What is the multiplier effect?
46. What are the FIVE aspects that cause the business cycle to move?
Chapter 14 & 15
47. What date are taxes due (must be post marked to the IRS)?
Chapter 16
56. What is the objective of the Federal Reserve System (The Fed)?
57. Who is the current chairman of the Fed?
58. What are the TWO things that the Fed fights?
59. What are the SEVEN functions of the Fed?
60. What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?
61. The Fed can change the money supply in three ways. Explain how they function
o Change the Reserve Requirement-