Which would you most likely find a smaller amount of in a government budget than in a personal or household budget?

The percent of total income that goes towards national defense and health care
The percentage of people affected by the budget who are responsible for making it
The number of dollars of income and revenue the budget is considering
The number of things the budget is planning on spending money onLynn is at a store and wants to buy a new backpack that costs $55. She only has $35 with her, but she has the rest at home. Lynn also has a credit card that does not charge her any interest if she pays the balance in full by the end of the month. Why might Lynn want to wait until she has $55 in cash at the store to purchase the backpack, instead of using her credit card?

Using a credit would cause the store to lose money, because even if she pays back her bill in full, she will still need to pay the credit card company additional dollars for the convenience of borrowing money.
Using cash would cause the store to lose a large amount of money, because credit card companies offer incentives to stores based on the number of people who use their card.
She might forget to pay the credit card bill, which would make her purchase more expensive due to interest payments and late charges.
She would likely have to pay more than $55 at the time of purchase for the convenience of using her credit card.
Question 8(Multiple Choice Worth 3 points)
(American Money LO 7 MC)

Which of the following is true about the U.S. federal government's ability to borrow money?

Elected officials in the federal government can prove to voters that they are responsible by paying back government debts on time.
The Constitution forbids the federal government from raising taxes, so the government needs to borrow money to cover the expenses of the services it provides.
The federal government can put money back into the economy during times of economic hardship without raising taxes.
Purchases of goods and services the government makes on credit can be insured by credit card companies, unlike items purchased with taxpayers' dollars.Question 10(Multiple Choice Worth 3 points)
(American Money LO 3 MC)

In what way do mixed and market economies support the ideals of democracy?

Mixed and market economies elect a few farmers and local leaders to choose which goods and services to produce.
Mixed and market economies do not produce more goods or services than what people need to survive.
Mixed and market economies allow all economic decisions to be made by a few well-qualified government officials.
Mixed and market economies protect individuals' ability to make their own economic decisionsQuestion 14(Multiple Choice Worth 3 points)
(American Money LO 4 MC)

Carl decides to keep his money under his mattress instead of putting it in the bank. If everyone made the same decision as Carl, what might the impact be on the national economy?

It would not affect the national economy greatly because individuals do not save much money.
It would help grow the national economy because the economy usually benefits when money is taken out of circulation.
It would hurt economic growth because banks often lend money to borrowers who then put that money back into circulation.
It would help economic growth by spurring the sale of mattresses.
Question 15(Multiple Choice Worth 3 points)
(American Money LO 4 MC)

Is a bank more likely to increase or decrease the amount of money in circulation?

A bank greatly increases the amount of money in circulation. It prints new money, which it is able to loan to new business and other individuals in need of loans.
A bank will increase the amount of money in circulation because it can help transfer money from people who want to save money to people who are going to spend it.
A bank has no effect on the amount of money in circulation. A bank does not print new money or dispose of old money.
A bank will decrease the amount of money in circulation because people who deposit money in banks are not spending it.
Question 16(Multiple Choice Worth 3 points)
(American Money LO 7 MC)

Imagine an economy without banks. Would it be more or less difficult for people to reach their financial goals?

More difficult, because it would be much harder for people to save money or obtain loans without banks.
More difficult, because it would be easier for people to obtain loans without banks getting in the way.
Less difficult, because without banks people would be less likely to save money.
Less difficult, because people would not have to worry about banks charging unnecessary fees.