Test 6 - Money and Investments Flashcards Preview

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Flashcards in Test 6 - Money and Investments Deck (10)
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1
Q

What is the official currency of the European Union?

A

euro

2
Q

What is anything that is generally accepted as a means of payment?

A

money

3
Q

What is legal tender that is backed by nothing but a government’s promise?

A

Fiat Money

4
Q

What is the result when too much money is in circulation?

A

inflation

5
Q

A checking account is what type of account?

A

transaction account

6
Q

What type of account guarantees a certain interest rate and has a specified maturity date?

A

CD

7
Q

What is one of the safest ways to invest in a corporation?

A

bonds

8
Q

What determines how much an investment grows?

A

Time
Rate of Return
Amount Invested

9
Q

What commits resources to a purpose expected to provide future gain?

A

investment

10
Q

What term describes the value of the best alternative that is foregone when a different alternative is taken?

A

opportunity cost