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Unformatted text preview: Quiz 1: ECO412, September 14, 2010 Name ____________________________ Multiple Choice Questions: Read each question carefully. Always select the best answer, especially if more than one appears to be correct. Questions 1 – 6: 1 point each. _____1. Financial instruments, such as stocks and bonds a. are usually owned only by wealthy individuals, who have substantial savings. b. are not owned by most individuals since the costs of buying and selling assets needed to construct and maintain a diversified portfolio are too high. * c. allow those with productive uses of funds (such as entrepreneurs) to obtain resources from those with excess funds (savers). d. usually require a substantial initial investment, usually a $10,000 minimum. _____2. Earning interest on a savings account is an example of the core principle that * a. time has value. b. risk requires compensation. c. markets determine prices and allocate resources. d. information is the basis for decisions. _____3. Which of the following types of transactions creates a deferred payment for you?...
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- Spring '05
- Federal Reserve System, a. Buying groceries