Fun Trivia Quiz On Economics - 2
Can you answer all these questions about Economics?
Questions and Answers
- 1.
What is the name of the currency of Lichtenstein, Niger, and Rwanda?
- A.
Pound
- B.
Franc
- C.
Lira
- D.
Dollar
Correct Answer
B. FrancExplanation
The correct answer is Franc. The currency of Lichtenstein, Niger, and Rwanda is the Franc.Rate this question:
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- 2.
What term refers to money established by government decree, and not fixed to any objective standard?
- A.
Fiat Money
- B.
Hollow Money
- C.
Federal Money
- D.
Mandate Money
Correct Answer
A. Fiat MoneyExplanation
Fiat money refers to currency that is established by government decree and is not fixed to any objective standard. Unlike commodity money, which has intrinsic value, fiat money relies solely on the trust and confidence of the people using it. The government declares the fiat money as legal tender, which means it must be accepted as a form of payment within the country. The value of fiat money is determined by factors such as supply and demand, government policies, and economic stability.Rate this question:
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- 3.
As of 2011, which of the following countries has a largely planned economy?
- A.
Cuba
- B.
South Africa
- C.
Canada
- D.
Poland
Correct Answer
A. CubaExplanation
Cuba has a largely planned economy as of 2011. This means that the government plays a significant role in controlling and directing the economy, including setting production targets, allocating resources, and determining prices. In a planned economy, the government typically owns and operates key industries and controls the distribution of goods and services. This is in contrast to a market economy, where decisions about production and distribution are primarily made by private individuals and businesses based on supply and demand.Rate this question:
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- 4.
What country's Glitnir bank was nationalized in 2008 as a result of that year's financial crisis?
- A.
Denmark
- B.
Belgium
- C.
Norway
- D.
Iceland
Correct Answer
D. IcelandExplanation
In 2008, Iceland experienced a severe financial crisis, which led to the nationalization of Glitnir bank. As a result of the crisis, the Icelandic government took control of the bank in order to stabilize the financial sector and protect the economy. This decision was made in Iceland, not in Denmark, Belgium, or Norway, making Iceland the correct answer.Rate this question:
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- 5.
If you have an $84,000 loan with a 0.25% annual interest rate, how much interest would be added to the loan after 1 year?
- A.
21000
- B.
2100
- C.
21
- D.
210
Correct Answer
D. 210Explanation
The annual interest rate is 0.25%, which means that for every $100 of the loan, $0.25 will be added as interest. To calculate the interest added after 1 year, we can multiply the loan amount ($84,000) by the interest rate (0.25%). $84,000 multiplied by 0.25% is $210. Therefore, the correct answer is 210.Rate this question:
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- 6.
According to the historian Herodotus, what civilization created the first coins around 600 BCE?
- A.
Assyrians
- B.
Persians
- C.
Mesopotamians
- D.
Lydians
Correct Answer
D. LydiansExplanation
The correct answer is Lydians. According to the historian Herodotus, the Lydians were the civilization that created the first coins around 600 BCE. This innovation in currency played a significant role in the development of trade and commerce, as it provided a standardized medium of exchange. The Lydians' introduction of coins marked an important milestone in the history of monetary systems.Rate this question:
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- 7.
When a market has a low volume of trading, it tends to display which of the following?
- A.
Small Fluctuations
- B.
No Fluctuations
- C.
Few Fluctuations
- D.
Large Fluctuations
Correct Answer
D. Large FluctuationsExplanation
When a market has a low volume of trading, it tends to display large fluctuations. This is because when there are fewer trades happening, it takes less buying or selling pressure to move the market. Therefore, even a small trade can have a significant impact on the price, leading to larger fluctuations.Rate this question:
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- 8.
What gruesome term describes a small upswing in a bear market?
- A.
Dead Duck Bounce
- B.
Dead Cat Bounce
- C.
Dead Dog Bounce
- D.
Dead Rat Bounce
Correct Answer
B. Dead Cat BounceExplanation
A "dead cat bounce" is a term used in finance to describe a temporary recovery or small increase in stock prices during a bear market. The phrase suggests that even a dead cat will bounce if it falls from a great enough height. In other words, it implies that the market may experience a brief rally before continuing its downward trend.Rate this question:
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- 9.
About what percentage of the United States' savings and loan associations failed during that industry's crisis in the 1980's and 90's?
- A.
4%
- B.
17%
- C.
11%
- D.
23%
Correct Answer
D. 23%Explanation
During the savings and loan crisis in the 1980s and 90s, approximately 23% of the United States' savings and loan associations failed. This indicates that a significant portion of these financial institutions experienced financial difficulties and were unable to sustain their operations during that period.Rate this question:
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- 10.
Which of the following retirement plans involves no cost whatsoever to the retiree?
- A.
Profit Sharing
- B.
Defined Contribution
- C.
401(k)
- D.
Roth IRA
Correct Answer
A. Profit SharingExplanation
Profit Sharing is a retirement plan that involves no cost to the retiree. In this plan, the employer contributes a portion of the company's profits to the retirement accounts of eligible employees. The retiree does not have to contribute any of their own money to the plan, making it a cost-free option for them.Rate this question:
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- 11.
A no-load fund is a mutual fund that...
- A.
Is Low-Risk
- B.
Does Not Impose A Sales Commission
- C.
Has Dropped In Price
- D.
Is Not Backed By A Financial Institution
Correct Answer
B. Does Not Impose A Sales CommissionExplanation
A no-load fund is a mutual fund that does not impose a sales commission. This means that investors can buy or sell shares of the fund without incurring any additional costs. Unlike load funds, which charge a sales commission typically ranging from 3% to 6% of the investment amount, no-load funds allow investors to fully invest their money without any deductions. This can be advantageous for investors looking to maximize their returns and avoid unnecessary fees.Rate this question:
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- 12.
Which of the following U.S. states was not among the top 5 in average mortgage closing costs for 2011?
- A.
Utah
- B.
Colorado
- C.
Idaho
- D.
Texas
Correct Answer
B. ColoradoExplanation
Colorado was not among the top 5 U.S. states in average mortgage closing costs for 2011. This means that the closing costs in Colorado were lower than those in the top 5 states.Rate this question:
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- 13.
The much-maligned Highway Revenue Act of 1982 increased the excise tax on gasoline by how much per gallon?
- A.
10 Cents
- B.
1 Dollar
- C.
5 Cents
- D.
25 Cents
Correct Answer
C. 5 CentsExplanation
The correct answer is 5 Cents. The Highway Revenue Act of 1982 increased the excise tax on gasoline by 5 cents per gallon.Rate this question:
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- 14.
If you're a stock trader and you're told to "kick out" a stock, what should you do with it?
- A.
Buy It If The Asking Price Is Less Than Expected
- B.
Sell It Without Regard To Price
- C.
Sell It If The Bidding Price Is More Than Expected
- D.
Buy It Without Regard To Price
Correct Answer
B. Sell It Without Regard To PriceExplanation
If you're told to "kick out" a stock, it means that you should sell it without considering the price. This suggests that the stock is no longer desirable or profitable, and it is better to get rid of it regardless of the selling price. The phrase "without regard to price" emphasizes that the focus should be on exiting the position rather than trying to maximize profits or minimize losses.Rate this question:
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- 15.
Which of the following concepts is not an explanation for why the aggregate demand curve slopes downward?
- A.
Production Effect
- B.
Wealth Effect
- C.
Interest Rate Effect
- D.
Exchange Rate Effect
Correct Answer
A. Production EffectExplanation
The production effect is not an explanation for why the aggregate demand curve slopes downward. The aggregate demand curve slopes downward because of the wealth effect, interest rate effect, and exchange rate effect. The wealth effect suggests that as prices decrease, the real value of wealth increases, leading to higher consumption and aggregate demand. The interest rate effect states that as prices decrease, interest rates decrease, leading to increased investment and aggregate demand. The exchange rate effect suggests that as prices decrease, the domestic currency appreciates, making exports more expensive and imports cheaper, leading to a decrease in net exports and aggregate demand.Rate this question:
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