Question 1

Most income for the Federal Government comes from:

Accepted Answer

The primary source of income for the Federal Government is individual income taxes, not any of the options listed.

Question 2

When current savings of an economic unit exceed its direct investment in real assets, this is referred to as:

Accepted Answer

When an economic unit has more savings than it is investing in real assets, it is referred to as a savings surplus. This means that the unit is saving more than it is using for productive investments, which can have implications for economic growth and development.

Question 3

Which of the following statements is most correct?

Accepted Answer

None of the statements are entirely correct. For example, contractual savings typically refer to long-term savings like insurance and pension funds, but not necessarily time and savings accounts in commercial banks. The U.S. became a debtor nation due to trade deficits, not increased savings. Recessions cannot be entirely avoided by fiscal policy alone. Corporate bonds and stocks are direct securities, not indirect.

Question 4

Which of the following represents the least important instrument used to raise funds in the credit markets during recent years?

Accepted Answer

Consumer debt, such as credit card debt and personal loans, is typically considered less important than government securities, corporate bonds, and mortgages in terms of raising funds in the credit markets. While consumer debt may have a significant impact on individuals' personal finances, it is not a primary source of funding for large-scale economic activities.

Question 5

When current savings of an economic unit exceed its direct investment in real assets,

Accepted Answer

The answer of When current savings of an economic unit...

Question 6

Which of the following statements is false?

Accepted Answer

The answer of Which of the following statements is false?
...

Question 7

Private financial intermediation generally represents an important annual source of funds supplied to credit markets.Which of the following intermediaries has failed to supply funds during one or more recent years?

Accepted Answer

Thrift institutions, such as savings and loan associations, experienced a significant failure rate during the savings and loan crisis in the late 1980s and early 1990s, resulting in a decrease in their ability to supply funds to credit markets during those years.

Question 8

Direct payments to individuals from the Federal government do not include:

Accepted Answer

The answer of Direct payments to individuals from the Federal...

Question 9

Which of the following statements is false?

Accepted Answer

Deleted in favor of changed #59 following

Question 10

Which of the following expenditures account for the largest part of the Federal budget?

Accepted Answer

The answer of Which of the following expenditures account for...

Question 11

Which one the following four basic economic units consistently represents a savings surplus unit?

Accepted Answer

Individuals often have a surplus of income over expenses which allows them to save and invest their money. They are a common example of a savings surplus unit. Business firms may also have a surplus of revenue over expenses, but they may also need to reinvest profits into the business which could negate any savings surplus. Financial intermediaries and governments may have savings surplus at certain times, but they also have obligations to lend or spend money as part of their functions.

Question 12

Which one the following four basic economic units consistently represents a savings surplus unit?

Accepted Answer

The answer of Which one the following four basic economic...

Question 13

Direct payments to individuals from the Federal government do not include:

Accepted Answer

The answer of Direct payments to individuals from the Federal...

Question 14

Most income for the Federal Government comes from:

Accepted Answer

According to the Congressional Budget Office, individual income taxes accounted for approximately 48% of the Federal Government's total revenue in 2019. Corporate income taxes only accounted for approximately 7% of total revenue, and social insurance receipts (such as payroll taxes) accounted for approximately 35%. Therefore, while all of the options listed contribute to the Federal Government's revenue, individual income taxes are the largest source of income.

Question 15

Which of the following factors usually influence a person's choice of savings medium?

Accepted Answer

All of the factors listed (liquidity, degree of safety, and return) typically influence a person's choice of savings medium. It is important for individuals to balance these factors based on their personal financial goals and needs. Some may prioritize liquidity for emergency situations, while others may prioritize return for long-term savings goals. Ultimately, it is up to the individual to decide what savings medium best aligns with their financial priorities.

Question 16

Which one the following four basic economic units consistently represents a savings surplus unit?

Accepted Answer

Individuals, as a group, typically save more than they spend, making them a consistent savings surplus unit.

Question 17

Which of the following statements is most correct?

Accepted Answer

State and local government borrowing is typically smaller than federal government borrowing in the U.S. credit markets.

Question 18

Which of the following borrowing sectors is the most important on an annual basis for raising funds in the credit markets?

Accepted Answer

The answer of Which of the following borrowing sectors is...

Question 19

Which of the following statements is most correct?

Accepted Answer

Financial assets and liabilities are created to balance savings surplus and deficit units, facilitating the flow of funds in the economy.

Question 20

Most income for the Federal Government comes from:

Accepted Answer

The majority of the Federal Government's income comes from individual income taxes. According to the Congressional Budget Office, individual income taxes accounted for 47% of total Federal Government revenue in 2020. Corporate income taxes accounted for only 7% of total revenue, while social insurance receipts (such as Social Security and Medicare taxes) accounted for 35%. Therefore, option B is the best choice.

Quiz 7: Savings and Investment Process

Most income for the Federal Government comes from:

When current savings of an economic unit exceed its direct investment in real assets, this is referred to as:

Which of the following statements is most correct?

Which of the following represents the least important instrument used to raise funds in the credit markets during recent years?

When current savings of an economic unit exceed its direct investment in real assets,

Which of the following statements is false?

Private financial intermediation generally represents an important annual source of funds supplied to credit markets.Which of the following intermediaries has failed to supply funds during one or more recent years?

Direct payments to individuals from the Federal government do not include:

Which of the following statements is false?

Which of the following expenditures account for the largest part of the Federal budget?

Which one the following four basic economic units consistently represents a savings surplus unit?

Which one the following four basic economic units consistently represents a savings surplus unit?

Direct payments to individuals from the Federal government do not include:

Most income for the Federal Government comes from:

Which of the following factors usually influence a person's choice of savings medium?

Which one the following four basic economic units consistently represents a savings surplus unit?

Which of the following statements is most correct?

Which of the following borrowing sectors is the most important on an annual basis for raising funds in the credit markets?

Which of the following statements is most correct?

Most income for the Federal Government comes from: