5 Written questions
5 Matching questions
- Money has 3 jobs:
3) Money stores value
- Adam Smith
- Preferred stock
- Sole Proprietorship
- a Money lasts for a long time, so you can keep it for a long time. It lets people store, or keep, their wealth.
- b The father of economics
He explained the ideas of capitalism/market economy
- c A business owned by 1 person.
-70% of today's businesses are sole proprietorships, but they only make about 10% sales in today's economy
-Examples: small retail stores, doctor's office
- d Stocks that guarantee that stockholders will get dividends
- e Shares of a company's profits paid to stock holders 2-4 times a year.
*This is one way to make money from investing in stocks
5 Multiple choice questions
- Not true money! This is a way to store value and increase your wealth. Money in a savings account collects interest!
- A special kind of check that represents money in a bank or large company. They are sold for face value with an extra fee, but they will be replaced if lost or stolen
- A pool (group) of money from investors that is used to buy stocks and bonds
- Something of value that a borrower gives a lender as a guarantee that the loan will be repaid.
Example: House or car
- The DOW is down which signals that the stock market is weak
5 True/False questions
Shareholder / Stockholder → People who buy stock
Checks → Shares of ownership in a corporation
Cash → A certificate promising to repay borrowed money with interest
-There are 2 types of bonds - corporate and municipal/government bonds
*Bonds are a safer investment than stocks
Commodity Money → The object used for money is valuable because the government says so
Credit Cards → Checks represent money in a checking account that is stored at the bank. This type of money is representative