Quiz on "Financial Bubbles"




 Important Instructions for Taking Quiz

There are two kinds of questions those with circles in front of the answers and those with squares in front of the answers.  The ones with circles have only one answer.  The ones with squares can have more than one answer but might only have one answer. Lets say a question has 2 right answers and you check the correct boxes but you also check two boxes that are the wrong answer. You will get a score of zero on the question even though 2 of the answers were correct. 
 

What is the law of supply and demand?

The more supply there is the more demand there is.
The more demand there is the more supply there is.
The higher the demand the higher the price.
The lower the supply the higher the price

Why do people pay so much for items that are worth a lot less than they pay for them?

Because they think they can sell those items for more than they paid for them.
Because they're rich and don't have anything better to spend their money on

What bubbles are mentioned in the video on the previous page?

The housing bubble
The daffodil bubble
The bitcoin bubble
The tulip bubble

The Federal Reserve was created to

Prevent bubbles
Ensure that when bubbles burst people still could get their money out of banks