We have a collection of sample questions and answers, (Q&A). The aim is to enable you get a clear picture of how you should approach questions. Normally, there are questions that demand short answers and those that require long answers.
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Which of the following is an example of derived demand? As the demand for hot dogs increases, the demand for hot dog buns increases. The supply of the meat that goes into hot dogs will affect the quantity demanded of the meat during the summer. As demand for hot dogs Read more…
Which statement is not true regarding a straight life policy? A) It has the lowest annual premium of the three types of whole-life policies. B) Its premium steadily decreases over time, in response to its growing cash value. C) The face value of the policy is paid to the insured Read more…
Question 1 All of the following make up the big three credit reporting agencies except: A: Equifax B: Federal Reserve. C: Transunion D: Experian Answer; B: Federal Reserve. Explanation: The Federal Reserve is a central bank of the United States and is also responsible for supervising financial institutions and insuring Read more…
Which helps enable an oligopoly to form within a market? Costs of starting a competing business are too high. The government restricts market entry. The number of options in a market confuses consumers. No competition exists between producers. Answer; (A) Costs of starting a competing business are too high What Read more…
Which of the following is a unique feature of credit unions? A. Credit unions are owned and operated by their participants. B. Credit unions provide a huge variety of financial products and services akin to the banks. C. Credit unions can have a large pool of members as membership is Read more…
What is one benefit of purchasing saving bonds? A. Saving bonds are purchased from the government and guaranteed to increase in value. B. Saving bonds are purchased from commercial banks and guaranteed to increase in value. C. Saving bonds are short-term investments backed by the government to protect from loss. Read more…
Which of the following types of financial aid do not require you to pay the money back? A. Grants B. Private Loans C. Federal Loans D. All of the above. Answer; A. Grants Grants don’t have to be paid back because they typically come from governmental organizations or private foundations Read more…
Which of the following is not a cost typically associated with owning a car? A. Fuel. B. Insurance. C. Wear and tear fees. D. Maintenance. Answer; C. Wear and tear fees Explanation Wear and tear is not usually associated with owning a car because it’s associated with the normal aging Read more…
In a free-enterprise system, consumers decide? A. how to set prices B. which goods to export C. how to use materials D. which services to buy Answer; D. which services to buy Explanation Free- enterprise system allows consumers to decide on which services to buy according to their interests. In Read more…
All of the following components are commonly found in rental housing agreements except: A. Whether the renter can have pets in the house. B. How much the renter will pay. C. What type of renter’s insurance the renter must buy D. Which repair types the renter will be responsible for. Read more…