Contemporary Economic Issues

Create an illustration showing a diverse group of people engaging in discussions about economic concepts, with graphs and financial icons in the background to represent financial markets and economic growth.

Contemporary Economic Issues Quiz

Test your knowledge on contemporary economic issues with our comprehensive quiz. This engaging assessment will challenge your understanding of financial markets, monetary policy, and economic theories.

Key Features:

47 Questions covering a range of economic topics
Multiple choice, true/false, and fill-in-the-blank formats
Immediate feedback on your answers

47 Questions12 MinutesCreated by InvestingEagle24

Financial markets promote economic efficiency by

Channeling funds from investors to savers

Creating inflation

Channeling funds from savers to investors

Financial markets promote greater economic efficiency by channeling funds from ________ to ________.

Lenders; savers

Borrowers; spenders

Lenders; borrowers

Well-functioning financial markets promote

Inflation

Growth

Deflation

Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called

Financial markets

Commodity markets

Goods markets

Bonds of a maturity of less than one year are considered

Short term

Medium term

Long term

Poorly performing financial markets can be the cause of

Growth

Poverty

Efficiency

The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of $100 per year) is commonly referred to as the interest rate

A share of common stock is a claim on a corporationʹs assets

A financial crisis is a major disruption in the financial markets

Financial institutions that accept deposits and make loans are called

Exchanges

Banks

Insurance companies

Which of the following is not a financial institution?

Bank

Insurance company

Business college

2. An important financial institution that assists in the initial sale of securities in the primary market is investment banks

Sustained downward movements in the business cycle are referred to as

Boom

Recessions

Expansions

During a recession, output declines resulting in lower unemployment in the economy

A sharp increase in the growth of the money supply is likely followed by inflation

An example of direct finance is

Buying shares

Buying bonds

Bank loans

A&b

If you use a loan in travelling overseas instead of starting your own business, you have committed

Moral hazard

Adverse selection

Credit risk

________ policy involves decisions about government spending and taxation

Monetary

Fiscal

Economic

A healthy inflation rate ranges between 2%-3%

________ is caused by an increase in aggregate demand

Inflation

Recession

Depression

When tax revenues are greater than government expenditures, the government has a budget ________.

Deficit

Surplus

Balance

The first stage in the business cycle is ________. In this stage, there is an increase in positive economic indicators such as employment, income, output, wages, profits, demand, and supply of goods and services.

Boom

Expansion

Recession

A company's shareholders are considered residual claimants

The principal lender-savers are households

Deposits are reported as liabilities in a bank's balance sheet

With ________ finance, borrowers obtain funds from lenders by selling them securities in the financial markets.

Direct

Active

Indirect

Shares are sold in debt markets

Long-term debt has a maturity that is

5 years

Between 1-5 years

More than 10 years

Which of the following benefit directly from any increase in the corporationʹs profitability?

Shareholder

Bondholder

Commercial paper holder

Inflation causes public expenditures to increase

A financial market in which previously issued securities can be resold is called a secondary market.

The monetary base consists of both currency in circulation and reserves

A liquid asset is an asset that can easily and quickly be sold to raise cash.

A financial market in which only short-term debt instruments are traded is called the ________ market.

Capital

Money

Shares are usually exchanged in

Capital market

Money market

Debt market

Public expenditures are equivalent and refundable

Fire insurance companies use their funds to buy more liquid assets because they have a greater possibility of loss of funds if major disasters occur.

______ is considered as the narrowest measure of money supply

COVID-19 Pandemic has resulted in ________ effects on the Egyptian economy

Positive

Negative

Minimal

______ is considered as the intermediate measure of money supply

Inflation caused by increased costs of production is called cost-push inflation.

In case of inflation, central bank must ______ required reserves ratio

The government can directly increase aggregate demand by spending more on goods and services, while keeping tax revenue constant

Treasury bills are sold at a discounted price

Components of Money supply in the United States in 2012	$ billions
Currency	$1,090.0
Traveler’s checks	$3.8
Demand deposits and other checking accounts	$1,351.1

Savings accounts	$6,692.0
Time deposits	$631.0
Individual money market mutual fund balances	$640.1

The value of M2 is:

2,449 Billion

5 Billion

10,408 Billion

Contemporary Economic Issues

Contemporary Economic Issues Quiz

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