Econ Unit 5 Test Study Guide
Econ Unit 5 Test Study Guide
Econ Unit 5 Test Study Guide
E
Unit 5 - Banking and Finance
elow is a list of topics that will be covered on the Unit 5 test. The unit test is open
B
book and open notes, so feel free to reference this document along with your unit
notes and your course content when answering test questions. Be sure to indicate the
unit #, lesson # and page # from the course. This will help with your time
management on test day. You are welcome to use a calculator as needed on this test.
3 Properties/characteristics of money
History of banking in the United States
Transition from states to national/centralized
Foreign ownership in 1st Bank of the United States
etermine the shifts between centralized and decentralized banking before the
D
C ivil War and describe the stabilization of the banking system during the late
1800s.
Identify developments in banking during the twentieth century and explain
functions of different types of financial institutions.
Fractional Reserve Banking
FDIC
The Financial system
Direct vs. Indirect financing
Objective of raising financial capital
*accessibility to start-ups
Investing and economic growth:
why we invest, what companies get in return
Stocks vs Bonds
Calculating bond yields
Calculating Annual Percentage Rate (APR) on loans
Capital gains/losses
Identify the trade-offs among risk, liquidity and return and analyze how
investing contributes to the free enterprise system.
Identify the connections between capital, stock markets, banks, and the
economy to explain how financial markets channel funds from savers to
investors.