Economics And Finance IQ Quiz

A default is a failure to pay a debt. It occurs when a borrower fails to make the required payments on a loan or debt obligation. This can happen with any type of debt, such as credit card debt, mortgages, or loans. When a default occurs, it can have serious consequences for the borrower, including damage to their credit score, legal action from the lender, and difficulty obtaining future credit.

During the Gilded Age when the nation was on the gold standard, you could exchange paper money in return for a certain amount of gold that had the same worth. This means that individuals could trade their paper money for an equivalent value of gold. This was possible because the value of the paper money was directly linked to the amount of gold reserves held by the government. Therefore, individuals had the option to exchange their paper money for gold, ensuring that their currency held the same worth.

Installments are a form of payment where a large amount is divided into smaller payments and paid over a longer period of time. This allows individuals or businesses to make a purchase or pay off a debt gradually, rather than paying the full amount upfront. Installments are commonly used for big-ticket items like cars, houses, or appliances, as well as for loans or credit card payments. By spreading out the payments, installments make it more affordable for people to make large purchases and manage their finances effectively.

Manufacture refers to the process of creating or producing something from raw materials, either by hand or by using machinery. It involves transforming the raw materials into a finished product through various steps such as cutting, shaping, assembling, and packaging. This term is commonly used in the context of industrial production, where goods are made on a large scale for commercial purposes. The other options, import, exchange, and stock, do not specifically relate to the process of creating products from raw materials.

A tariff is a tax imposed on foreign goods in order to increase their cost. This is done to protect domestic industries by making imported goods more expensive and less competitive in the domestic market. By imposing tariffs, the government aims to promote local production and consumption, thereby supporting domestic businesses and safeguarding national economic interests.

The word "unemployed" refers to individuals who do not have a job. It is commonly used to describe people who are actively seeking employment but are currently without work. This term is often used in economic and labor market discussions to refer to the portion of the population that is not employed.

The correct answer is "bankrupt". If someone is unable to pay their debts, they are considered bankrupt. This means that they are legally declared unable to repay their debts and their assets are used to settle their outstanding obligations. Being bankrupt is a financial state of insolvency where a person or business is unable to meet their financial obligations.

Foreclosure is the process in which a bank seizes a mortgaged property because the borrower has defaulted on their mortgage payments. This typically occurs when the borrower is unable to make the required payments and falls into arrears. The bank then takes legal action to repossess the property and sell it in order to recover the outstanding debt.

Foreign competitors refers to businesses in other countries who are trying to sell the same products as the U.S. This means that these businesses are competing with U.S. companies in the global market, offering similar products to consumers. They may have different pricing strategies, marketing techniques, and product features, but they are all vying for the same customers and market share. It is important for U.S. businesses to understand and analyze their foreign competitors in order to stay competitive and adapt their strategies accordingly.

Imports refer to goods that are purchased from other countries and brought into the U.S. This can include a wide range of products, such as electronics, clothing, and food. Imports are an important part of international trade and can have a significant impact on a country's economy. By importing goods, countries can access a wider variety of products and potentially benefit from lower prices or higher quality items.

Income refers to the money that a person receives for performing a job or providing a service. It is the payment or compensation that an individual earns as a result of their employment. Income can come in various forms, such as wages, salaries, commissions, or bonuses. It is a crucial aspect of one's financial well-being and is used to meet daily expenses, save for the future, and fulfill financial goals.

A stock market is a place where shares in companies are bought and sold. It is a platform where investors can trade stocks, which represent ownership in a company. The stock market provides a way for companies to raise capital by selling shares to the public, and for investors to buy and sell those shares based on their expectations of the company's performance. It is an essential component of the financial system, facilitating the flow of funds between investors and companies.

The term "abroad" refers to foreign countries. It is commonly used to describe a person or something that is located or taking place in a foreign country. It is often used when talking about traveling or living in another country that is different from one's own.

A depression is a long period during which the economy is poor and goes through deflation. In a depression, people are so broke that they don't buy things no matter how low prices go, unlike in deflation where the economy can recover when merchants lower their prices.

Money panic refers to a situation where people fear that their money is about to lose value, leading them to rush to banks to exchange their paper currency for gold. This behavior is driven by the belief that gold holds its value better than paper currency during times of economic uncertainty. The term "money panic" captures the sense of fear and urgency that drives individuals to take such actions.

A mortgage is the debt you pay on a loan used to buy a house or piece of land.

A share is a unit of ownership in a company. It represents a portion of the company's capital and entitles the shareholder to certain rights, such as voting rights and a share in the company's profits. Shareholders can buy and sell shares in the stock market, and the value of shares can fluctuate based on market conditions and the performance of the company.

Business trusts are monopolies or agreements among competitors to set high prices to get rid of competition. Business trusts are a form of business organization where a group of companies come together and transfer their assets to a trust. This trust then issues shares to the shareholders, who receive dividends based on the profits generated by the trust. In some cases, business trusts can be used to eliminate competition by setting high prices and controlling the market, thereby creating a monopoly-like situation.

Grover Cleveland was the president of the United States during the Depression of 1893. He served two non-consecutive terms, from 1885 to 1889 and from 1893 to 1897. The depression of 1893 was one of the most severe economic crises in American history, characterized by bank failures, high unemployment rates, and a decline in industrial production. Cleveland's response to the depression focused on fiscal conservatism and maintaining the gold standard, which some criticized as exacerbating the economic downturn. Despite the challenges, Cleveland managed to stabilize the economy by the end of his second term.

During the Panic of 1893, people were afraid that the value of their money would decrease. This fear led to a rush of people going to banks to exchange their paper currency for gold, as gold was considered a more stable form of currency. This mass movement of people trying to secure their money contributed to the panic and economic downturn of the time.