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Question

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1.which of the following is NOT a function of money?
a. currency exchange
b. medium exchange
c. store of value
d. unit of account
2. what is a primary reason money is often preferred over bartering in transactions?
a. it allows for the exchange of goods without needing a mutual desire.
b. it requires both parties to have goods of equal value.
c. it complicates the trading process with negotiations.
d. it limits the types of goods that can be exchanged.
3. what happens to interest rates when there is a high demand for car loans?
a. interest rates decrease to encourage borrowing.
b. interest rates remain the same regardless of demand.
c. interest rates may increase due to higher demand.
d. interest rates are only affected by government policies.
4. why do many financial advisors recommend accounts that offer compound interest
a. because compound interest allows for lower initial investments.
b. because simple interest is more complicated to calculate.
c. because compound interest can lead to higher total earnings over time.
d. because compound interest is guaranteed to earn more every year.
5. if jaden earns around $30,000 a year and ava earns $70,000 or more annually what can be inferred about their education or skills.
a. ava's job is less demanding than jaden's.
b. ava and jaden have the same level of education.
c. ava likely has higher education or more skills than jaden
d. jaden likely has higher education or more skills than ava
6. what might happen if you miss a credit card payment?
a. your credit limit will be increased.
b. you will receive a refund for the missed payment
c. you may incur late fees and higher interest rates
d. your credit card will be canceled immediately
7. what is one advantage of using a credit card?
a. it eliminates the need for a credit score.
b. it provides purchase protection
c. it guarantees a loan approval
d. it allows unlimited borrowing without repayment
8. which of the following best describes the relationship between timely car payments and credit scores?
a. only credit card payments affect credit scores
b. timely payments can help build a good credit score
c. timely payments have no effect on credit scores.
d. late payments can improve credit scores.
9. miguel is an entrepreneur considering starting a new business. he is aware of the risks involved but are also motivated by potential benefits which of the following choices best analyzes how both risks and rewards might influence miguels decision to pursue this path?
a. the risks outweigh the benefits because a new business has a high chance of failure, making it unlikely that miguel will experience personal satisfaction.
b.the benefits are appealing because they guarantee wealth and happiness making entrepreneur ship a safe choice with minimal risk.
c.the risk and benefits both play a role. financial gain and personal satisfaction may be motivate miguel, even though he is aware that failure is possible.
d. the rewards of entrepreneurship are mostly limited to financial gain so any personal satisfaction miguel feels is unlikely to affect his decision
10. what is the relationship between households and businesses in the circular flow model?
a. households provide goods to businesses.
b. businesses provide services to the government.
c. households spend money on goods and services from businesses.
d. businesses collect taxes from households.

Answer 1

Here are the answers to your questions:

1. a. currency exchange - It is not a primary function of money; rather, the main functions are medium of exchange, store of value, and unit of account.

2. a. it allows for the exchange of goods without needing a mutual desire. - Money simplifies transactions by allowing people to exchange goods without requiring both parties to want what the other has.

3. c. interest rates may increase due to higher demand. - When there is a high demand for loans, lenders can charge higher interest rates.

4. c. because compound interest can lead to higher total earnings over time. - Compound interest allows investments to grow at a faster rate than simple interest.

5. c. ava likely has higher education or more skills than jaden. - Generally, higher earnings correlate with higher education or specialized skills.

6. c. you may incur late fees and higher interest rates. - Missing a payment can result in penalties and increased costs.

7. b. it provides purchase protection. - Many credit cards offer benefits such as protection on purchases and rewards.

8. b. timely payments can help build a good credit score. - Regular, timely payments positively affect credit scores.

9. c. the risk and benefits both play a role. financial gain and personal satisfaction may motivate miguel, even though he is aware that failure is possible. - Entrepreneurs assess both the potential risks and rewards before making decisions.

10. c. households spend money on goods and services from businesses. - The circular flow model illustrates how households and businesses interact through the exchange of money and goods/services.

Let me know if you need further explanations or details!