Cenni Demo Test Reading 1

5 Questions | Total Attempts: 260

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Reading Quizzes & Trivia

This is a DEMO CENNI test in order to practice and prepare yourselves for the exam


Questions and Answers
  • 1. 
    Economics is the social science that deals with the production, distribution, and consumption of goods and services. Business may refer to any gainful economic activity or, more narrowly, to organizations that produce and distribute commodities. Basically, economics is a branch of investigation and study, while business connotes activity. Yet, the two terms increasingly overlap. Once thought of as a knack or skill that could never be taught in school, business has developed claims to scientific status in the twentieth century. Today, there are schools of business administration that, much like departments of economics, engage in study and research.Both economic theory and the growing emphasis on the study of business have spilled over from the universities into the public forum. The budget deficit, foreign trade deficit, and stock market boom of the 1980s and early 1990s have combined with the recent recession and decline of interest rates to pique popular interest in economic issues. Less obvious but no less important, the deregulation of financial institutions by the federal government, the vast growth of pension funds within the last twenty years, and recent changes in the federal tax code have raised the threshold of financial knowledge for Americans. As late as the 1950s, banks rarely advertised, savings and loan associations did not offer checking accounts, and insurance companies concentrated on selling insurance. Now, all of these institutions advertise and compete with one another by offering similar services. For example, all of them offer pension and retirement plans, and individual investors must be able to sort out and assess their rival claims.To do so, ordinary Americans need not become professors of economics; but they must understand the difference between stocks and bonds, and they should understand why the stock market tends to decline when the interest rates rise What is the topic of the passage?
    • A. 

      Business and its relation to economic issues

    • B. 

      Business and economics

    • C. 

      The teaching of economics in business schools

    • D. 

      The American economic system

  • 2. 
    Economics is the social science that deals with the production, distribution, and consumption of goods and services. Business may refer to any gainful economic activity or, more narrowly, to organizations that produce and distribute commodities. Basically, economics is a branch of investigation and study, while business connotes activity. Yet, the two terms increasingly overlap. Once thought of as a knack or skill that could never be taught in school, business has developed claims to scientific status in the twentieth century. Today, there are schools of business administration that, much like departments of economics, engage in study and research.Both economic theory and the growing emphasis on the study of business have spilled over from the universities into the public forum. The budget deficit, foreign trade deficit, and stock market boom of the 1980s and early 1990s have combined with the recent recession and decline of interest rates to pique popular interest in economic issues. Less obvious but no less important, the deregulation of financial institutions by the federal government, the vast growth of pension funds within the last twenty years, and recent changes in the federal tax code have raised the threshold of financial knowledge for Americans. As late as the 1950s, banks rarely advertised, savings and loan associations did not offer checking accounts, and insurance companies concentrated on selling insurance. Now, all of these institutions advertise and compete with one another by offering similar services. For example, all of them offer pension and retirement plans, and individual investors must be able to sort out and assess their rival claims.To do so, ordinary Americans need not become professors of economics; but they must understand the difference between stocks and bonds, and they should understand why the stock market tends to decline when the interest rates rise What is the purpose of the passage?
    • A. 

      To advise people to study economics

    • B. 

      To discredit the services that banks and other financial institutions provide

    • C. 

      To stress the differences between economics and business

    • D. 

      To discuss the increasing interest in the study of economics and business

  • 3. 
    Economics is the social science that deals with the production, distribution, and consumption of goods and services. Business may refer to any gainful economic activity or, more narrowly, to organizations that produce and distribute commodities. Basically, economics is a branch of investigation and study, while business connotes activity. Yet, the two terms increasingly overlap. Once thought of as a knack or skill that could never be taught in school, business has developed claims to scientific status in the twentieth century. Today, there are schools of business administration that, much like departments of economics, engage in study and research.Both economic theory and the growing emphasis on the study of business have spilled over from the universities into the public forum. The budget deficit, foreign trade deficit, and stock market boom of the 1980s and early 1990s have combined with the recent recession and decline of interest rates to pique popular interest in economic issues. Less obvious but no less important, the deregulation of financial institutions by the federal government, the vast growth of pension funds within the last twenty years, and recent changes in the federal tax code have raised the threshold of financial knowledge for Americans. As late as the 1950s, banks rarely advertised, savings and loan associations did not offer checking accounts, and insurance companies concentrated on selling insurance. Now, all of these institutions advertise and compete with one another by offering similar services. For example, all of them offer pension and retirement plans, and individual investors must be able to sort out and assess their rival claims.To do so, ordinary Americans need not become professors of economics; but they must understand the difference between stocks and bonds, and they should understand why the stock market tends to decline when the interest rates rise The word "overlap" is closest in meaning to
    • A. 

      Completely oppose.

    • B. 

      hardly correlate.

    • C. 

      coincide partly

    • D. 

      absolutely distinguish.

  • 4. 
    Economics is the social science that deals with the production, distribution, and consumption of goods and services. Business may refer to any gainful economic activity or, more narrowly, to organizations that produce and distribute commodities. Basically, economics is a branch of investigation and study, while business connotes activity. Yet, the two terms increasingly overlap. Once thought of as a knack or skill that could never be taught in school, business has developed claims to scientific status in the twentieth century. Today, there are schools of business administration that, much like departments of economics, engage in study and research.Both economic theory and the growing emphasis on the study of business have spilled over from the universities into the public forum. The budget deficit, foreign trade deficit, and stock market boom of the 1980s and early 1990s have combined with the recent recession and decline of interest rates to pique popular interest in economic issues. Less obvious but no less important, the deregulation of financial institutions by the federal government, the vast growth of pension funds within the last twenty years, and recent changes in the federal tax code have raised the threshold of financial knowledge for Americans. As late as the 1950s, banks rarely advertised, savings and loan associations did not offer checking accounts, and insurance companies concentrated on selling insurance. Now, all of these institutions advertise and compete with one another by offering similar services. For example, all of them offer pension and retirement plans, and individual investors must be able to sort out and assess their rival claims.To do so, ordinary Americans need not become professors of economics; but they must understand the difference between stocks and bonds, and they should understand why the stock market tends to decline when the interest rates rise The words "these institutions" refer to:
    • A. 

      Banks, savings and loans associations and insurance companies

    • B. 

      Federal government and financial institutions.

    • C. 

      Universities and schools of business administration.

    • D. 

      Advertising companies.

  • 5. 
    Economics is the social science that deals with the production, distribution, and consumption of goods and services. Business may refer to any gainful economic activity or, more narrowly, to organizations that produce and distribute commodities. Basically, economics is a branch of investigation and study, while business connotes activity. Yet, the two terms increasingly overlap. Once thought of as a knack or skill that could never be taught in school, business has developed claims to scientific status in the twentieth century. Today, there are schools of business administration that, much like departments of economics, engage in study and research.Both economic theory and the growing emphasis on the study of business have spilled over from the universities into the public forum. The budget deficit, foreign trade deficit, and stock market boom of the 1980s and early 1990s have combined with the recent recession and decline of interest rates to pique popular interest in economic issues. Less obvious but no less important, the deregulation of financial institutions by the federal government, the vast growth of pension funds within the last twenty years, and recent changes in the federal tax code have raised the threshold of financial knowledge for Americans. As late as the 1950s, banks rarely advertised, savings and loan associations did not offer checking accounts, and insurance companies concentrated on selling insurance. Now, all of these institutions advertise and compete with one another by offering similar services. For example, all of them offer pension and retirement plans, and individual investors must be able to sort out and assess their rival claims.To do so, ordinary Americans need not become professors of economics; but they must understand the difference between stocks and bonds, and they should understand why the stock market tends to decline when the interest rates rise According to the author, why is it important for Americans to understand that there is a difference between stock and bonds?
    • A. 

      To understand a rise in the interest rates and its effects on stock markets

    • B. 

      To be able to evaluate those services offered by competing institutions

    • C. 

      To compete with each other by offering better investment opportunities

    • D. 

      To participate in political and economic debates throughout the country

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