BSA 101 Q4 Exam #1 Questions with correct answers
You pay your friend $50 in exchange for the awesome shoes she is selling. Your
friend puts that $50 into her backpack. Two weeks later she uses the $50 to buy a
book for class. This is an example of: - ✔✔Store of value
Wendy has tons of tomatoes on her tomato plants to harvest but no time to do it.
Claira is trying to save money to go to college next year. Wendy agrees to pay
Claira $25 for her work and Claira puts the money in the bank. This illustrates one
of the advantages of money over bartering, which is: - ✔✔Money stores value
King Richard over taxed the poor, taking their gold coins in order to build his own
wealth. King Richard was using: - ✔✔Commodity money
If you were given the task of totaling all the M2 money in circulation in the US,
which of the following would you include in your calculations? - ✔✔2.Savings
accounts
At the end of the week, Carla receives her paycheck and goes directly to the bank
after work to make a deposit into her savings account. The bank keeps the
required reserve and then loans out the remaining balance to a qualified
borrower named Malik as a portion of his small business loan. Malik uses the loan
to buy a tractor for his construction business and makes small monthly payments
to the bank to payback the principal balance plus interest on the loan. The bank
profits from a portion of the interest payment received and also passes some of
the interest back to Carla in the form of an interest payment to her savings
account. In this example, the bank is acting ________. - ✔✔As an intermediary
between the saver (Carla) and the borrower (Malik)
You pay your friend $50 in exchange for the awesome shoes she is selling. Your
friend puts that $50 into her backpack. Two weeks later she uses the $50 to buy a
book for class. This is an example of: - ✔✔Store of value
Wendy has tons of tomatoes on her tomato plants to harvest but no time to do it.
Claira is trying to save money to go to college next year. Wendy agrees to pay
Claira $25 for her work and Claira puts the money in the bank. This illustrates one
of the advantages of money over bartering, which is: - ✔✔Money stores value
King Richard over taxed the poor, taking their gold coins in order to build his own
wealth. King Richard was using: - ✔✔Commodity money
If you were given the task of totaling all the M2 money in circulation in the US,
which of the following would you include in your calculations? - ✔✔2.Savings
accounts
At the end of the week, Carla receives her paycheck and goes directly to the bank
after work to make a deposit into her savings account. The bank keeps the
required reserve and then loans out the remaining balance to a qualified
borrower named Malik as a portion of his small business loan. Malik uses the loan
to buy a tractor for his construction business and makes small monthly payments
to the bank to payback the principal balance plus interest on the loan. The bank
profits from a portion of the interest payment received and also passes some of
the interest back to Carla in the form of an interest payment to her savings
account. In this example, the bank is acting ________. - ✔✔As an intermediary
between the saver (Carla) and the borrower (Malik)
