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Economics

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Aryanna Cummings

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Cards in this guide (21)
What does IPO means

IPO stands for Initial Public Offering. An IPO is the first stock offering a company makes to the public.

Source: http://www.ipoboutique.com

Which kind of stock market analysis focuses on overall trends in the market

Technical analysis is the kind of stock market analysis that focuses on overall trends in the market.

What is most likely to lead to an increase in wages

The formation of a labor union

When a company goes public it begins doing what

Selling shares of stock

A boycott would not be successful under what circumstance

If most consumers didn't stay away from the company that was being protested against, a boycott would not be successful.

Why are student loans usually guaranteed by the government

Banks don't have any collateral for student loans.

The non-monetary considerations that affect consumers' decisions are often based on what

Values and beliefs

Under a fractional reserve banking system the amount of money loaned out can only increase if what happens

The required reserve ratio is lowered.

What is most likely to push the price of a company's stock higher

An increase in demand for the company's stock

Which is not a policy tool used by the Fed

Making tax cuts

Economics is about the production of goods and services which requires the allocation of what

Resources

What does a budget help you do

manage your money better and help you save

Keep your expenses below your income

Which of these helps you avoid debt by keeping your expenses below your income

A personal budget

In an economic system decisions need to be made about productive resources and which of the following

Allocation

What are the four basic patterns of business ownership

The four basic patterns of a business ownership are sole proprietorship, partnership, C corporation, and the S corporation. In a sole proprietor ship the business is owned by one person. That one person is taxed for the business and there is unlimited liability on that one person. In a partnership, the business is owned by two or more people by a contract. Depending on the type of partnership liability may or may not be unlimited. The corporation is a separate and legal entity. There is separated taxation and limited liability. The corporation will continue on, even after the death of the owners. In corporations there are shareholders, directors, officers, and employees. It is much more difficult to form a corporation. A C corporation is public; meanwhile, an S corporation is very similar to a partnership.

Which of the following is one disadvantage for a company that goes public

The pressure to make profits is increased.

Which is most likely to lead to a decrease in the price of a companys stock

Annual profits decrease

Which is most likely to lead to an increase in the price of company's stock

Its profits increase

What is the name of the interest payments that a bondholder receives for purchasing a bond

Apex- Coupon

A company can raise money by doing all but which of the following

providing stock options to executives

When Compared to basic savings accounts CDs are liquid and have interest rates

more; lower

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