LOMA 308 Module 1 Exam Questions
and Answers All Correct
A deposit account that invests amounts on deposit in short-term, low-risk investments
and then pays interest according to the performance of the investments. Most accounts
offer limited check-writing privileges.
Money market deposit account (MMDA)
Checking account
Share draft account
Cash management account - Answer-Money Market deposit account
An interest-earning checking account offered by credit unions
Money market deposit account (MMDA)
Checking account
Share draft account
Cash management account - Answer-Share draft account
An account that offers a package of checking services, brokerage services, credit and
debit cards, loans, and unified recordkeeping
Money market deposit account (MMDA)
Checking account
Share draft account
Cash management account - Answer-Cash management account
A deposit account that allows customers to write checks for specific amounts against
funds on deposit. Account owners can access and transfer funds through checks, debit
cards, or electronic funds transfers (EFTs).
Money market deposit account (MMDA)
Checking account
Share draft account
Cash management account - Answer-checking account
Bill and Mary Mycroft obtained a mortgage from the Baywater Bank to cover the cost of
purchasing a new home.
A. Labor market
B. Financial (capital) market
C. Product (output) market - Answer-B.
,The Fairfield Manufacturing Company produces machinery that it sells to factories and
processing plants.
A. Labor market
B. Financial (capital) market
C. Product (output) market - Answer-C.
The Crandall Corporation recently held a job fair at a local college in order to recruit new
employees.
A. Labor market
B. Financial (capital) market
C. Product (output) market - Answer-A.
Money can function in the marketplace as a medium of exchange, a standard measure
of value, or a store of value. Money functions as a medium of exchange in marketplace
transactions by
A. Guaranteeing that prices for products and services will remain consistent over the
long term
B. Offering a standard way for buyers to pay for and sellers to accept payment for
products and services
C. Ensuring that payments sellers receive for products and services will have the same
value when they're used to purchase other products or services
D. Measuring value in consistent monetary units - Answer-B. - Money serves as a
medium of exchange in market transactions by providing a standardized way to make
and receive payments that is acceptable for buyers and sellers. Money serves as a
standard measure of value by creating standardized monetary units of account. Money
serves as a store of value by ensuring that payments received will have the same value
when they're used to make payments later. Money does not guarantee that prices of
products and services will remain consistent over the long term.
Economists often use circular flow diagrams to illustrate market exchanges. These
diagrams allow users to track the flow of
A. Funds and goods and services
B. Funds only
C. Goods and services only
D. Exchanges through product, labor, and capital markets only - Answer-A. - Circular
flow diagrams are used to track the movement of funds and the movement of goods and
services between market participants, either directly or through product, labor, or capital
markets.
Economy - Answer-The part of the environment that includes all of the elements
affecting the production, distribution, and consumption of goods and services.
economies exist at three different levels
- local economies: include the activities of people, businesses, and governments in
individual neighborhoods, cities, provinces, territories, or states.
, - national economies: include the activities of people, businesses, and governments in
all local economies in a nation.
- global economies: are multinational and include the activities of people, businesses,
and governments in multiple nations.
Economic Sectors - Answer-Sector 1 (Raw Materials): Sector 1 activities form the
foundation of all economies by
Securing raw materials needed for production, such as land, lumber, coal, gas and oil,
minerals, and basic foods
Supporting industries such as agriculture, forestry, fishing and hunting, and mining
In developed economies, few people are involved in Sector 1. In developing economies,
a large percentage of the population is often involved.
Sector 2 (Manufactured Goods): Sector 2 activities
Turn raw materials into finished products, such as machinery, clothing, and packaged
goods, and make them available to consumers
Focus primarily on manufacturing, processing, and construction
Sector 3 (Services): Sector 3 activities
Facilitate the transfer of finished goods to end users through services such as
wholesale/retail sales, transportation and warehousing, and distribution
Enhance consumers' lives through services such as entertainment, media, financial
services, healthcare, and law
Sector 4 (Intellectual Property): Sector 4 activities
Improve the quality of life through education, government, and culture
Support intellectual concerns such as scientific research and information technology,
education, and the arts
Farmland Financial is a U.S. company that markets its products and services to clients
throughout the Midwest. Farmland's operations contribute to economic activities at the
(choose all that apply)
A. Local level
B. National level
C. Global level - Answer-A & B - Farmland is part of the local economy of each
community and state in which it markets its products and services. Because a country's
national economy includes all local economies in the country, Farmland is also part of
the national economy. Farmland is not part of the global economy because it doesn't do
business outside the United States.
The largest economic sector in most developed countries is
A. Sector 1 (Raw Materials)
B. Sector 2 (Manufactured Goods)
C. Sector 3 (Services)
and Answers All Correct
A deposit account that invests amounts on deposit in short-term, low-risk investments
and then pays interest according to the performance of the investments. Most accounts
offer limited check-writing privileges.
Money market deposit account (MMDA)
Checking account
Share draft account
Cash management account - Answer-Money Market deposit account
An interest-earning checking account offered by credit unions
Money market deposit account (MMDA)
Checking account
Share draft account
Cash management account - Answer-Share draft account
An account that offers a package of checking services, brokerage services, credit and
debit cards, loans, and unified recordkeeping
Money market deposit account (MMDA)
Checking account
Share draft account
Cash management account - Answer-Cash management account
A deposit account that allows customers to write checks for specific amounts against
funds on deposit. Account owners can access and transfer funds through checks, debit
cards, or electronic funds transfers (EFTs).
Money market deposit account (MMDA)
Checking account
Share draft account
Cash management account - Answer-checking account
Bill and Mary Mycroft obtained a mortgage from the Baywater Bank to cover the cost of
purchasing a new home.
A. Labor market
B. Financial (capital) market
C. Product (output) market - Answer-B.
,The Fairfield Manufacturing Company produces machinery that it sells to factories and
processing plants.
A. Labor market
B. Financial (capital) market
C. Product (output) market - Answer-C.
The Crandall Corporation recently held a job fair at a local college in order to recruit new
employees.
A. Labor market
B. Financial (capital) market
C. Product (output) market - Answer-A.
Money can function in the marketplace as a medium of exchange, a standard measure
of value, or a store of value. Money functions as a medium of exchange in marketplace
transactions by
A. Guaranteeing that prices for products and services will remain consistent over the
long term
B. Offering a standard way for buyers to pay for and sellers to accept payment for
products and services
C. Ensuring that payments sellers receive for products and services will have the same
value when they're used to purchase other products or services
D. Measuring value in consistent monetary units - Answer-B. - Money serves as a
medium of exchange in market transactions by providing a standardized way to make
and receive payments that is acceptable for buyers and sellers. Money serves as a
standard measure of value by creating standardized monetary units of account. Money
serves as a store of value by ensuring that payments received will have the same value
when they're used to make payments later. Money does not guarantee that prices of
products and services will remain consistent over the long term.
Economists often use circular flow diagrams to illustrate market exchanges. These
diagrams allow users to track the flow of
A. Funds and goods and services
B. Funds only
C. Goods and services only
D. Exchanges through product, labor, and capital markets only - Answer-A. - Circular
flow diagrams are used to track the movement of funds and the movement of goods and
services between market participants, either directly or through product, labor, or capital
markets.
Economy - Answer-The part of the environment that includes all of the elements
affecting the production, distribution, and consumption of goods and services.
economies exist at three different levels
- local economies: include the activities of people, businesses, and governments in
individual neighborhoods, cities, provinces, territories, or states.
, - national economies: include the activities of people, businesses, and governments in
all local economies in a nation.
- global economies: are multinational and include the activities of people, businesses,
and governments in multiple nations.
Economic Sectors - Answer-Sector 1 (Raw Materials): Sector 1 activities form the
foundation of all economies by
Securing raw materials needed for production, such as land, lumber, coal, gas and oil,
minerals, and basic foods
Supporting industries such as agriculture, forestry, fishing and hunting, and mining
In developed economies, few people are involved in Sector 1. In developing economies,
a large percentage of the population is often involved.
Sector 2 (Manufactured Goods): Sector 2 activities
Turn raw materials into finished products, such as machinery, clothing, and packaged
goods, and make them available to consumers
Focus primarily on manufacturing, processing, and construction
Sector 3 (Services): Sector 3 activities
Facilitate the transfer of finished goods to end users through services such as
wholesale/retail sales, transportation and warehousing, and distribution
Enhance consumers' lives through services such as entertainment, media, financial
services, healthcare, and law
Sector 4 (Intellectual Property): Sector 4 activities
Improve the quality of life through education, government, and culture
Support intellectual concerns such as scientific research and information technology,
education, and the arts
Farmland Financial is a U.S. company that markets its products and services to clients
throughout the Midwest. Farmland's operations contribute to economic activities at the
(choose all that apply)
A. Local level
B. National level
C. Global level - Answer-A & B - Farmland is part of the local economy of each
community and state in which it markets its products and services. Because a country's
national economy includes all local economies in the country, Farmland is also part of
the national economy. Farmland is not part of the global economy because it doesn't do
business outside the United States.
The largest economic sector in most developed countries is
A. Sector 1 (Raw Materials)
B. Sector 2 (Manufactured Goods)
C. Sector 3 (Services)
