PREVFinLit1 - IG (80p Protected Preview)

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ARE YOU FINANCIALLY LITERATE? CHAPTERS 1-5

19. What is the gold standard and what purpose did it serve? _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 20. Is the U.S. still on the gold standard? If not, what took its place, when and what does it mean? _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 21. The CPI refers to the _______, which tracks _______ and is looked to for signs of _______. a. Consumer Price Index; price of a basket of consumer goods; inflation b. Consumer Price Institute; consumer confidence; stability c. Credit Product Indicator; government subsidy programs; earning increases d. none of the above True or False? Correct the false statement, explain or elaborate on your choice. _________ 22. The Consumer Confidence Index is a Department of Labor economic indicator issued annually, tracking which retail stores are most popular with consumers between the ages of 15 and 25. The U.S. government held a percentage of the value of the circulating paper money in the form of gold bullion . This reservation of gold provided intrinsic value for circulating paper currency, and tied to the value of currency. In 1971 the U.S. went off the gold standard. Money is backed by fiat, which is a government decree that its legal tender has value . False PRODUCT PREVIEW ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ The CCI tracks consumer sentiment and outlook about costs and finances, not retail store popularity. It is produced monthly by The Conference Board. Barter is the direct trade for goods or services without the use of money. Before money, the exchange of goods and services was by barter. Barter is the beginning of all commerce . _________ 23 . Commerce began as a simple barter system. ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ _________ 24 . The absence of a common unit of measured value was one of the great strengths of the barter system. False True

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____________________________________________________________ ____________________________________________________________ ____________________________________________________________ The absence of common unit of measured value was one of the deficiencies of barter. It made it hard to trade diffirent kinds of stuff.

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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY

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