upfront QUIZ 1.

Use with NATIONAL, pages 8-15, and HISTORY, pages 16-17

SHORT ANSWER: Write the correct answer on the line provided.

1. A recession is often defined as a certain minimum period during which the nation's economic output declines. How long is that period? --

2. The country's central bank, called the Federal Reserve, can stimulate the economy, making it cheaper for consumers to borrow money and spend it on goods such as homes and cars. How does the "Fed" do this? --

3. What is President Bush's principal plan for stimulating the U.S. economy? --

4. The great majority of teen investors follow the two traditional rules of investing,. What are these rules? --

5. What is the most famous stock exchange in the United States? --

   FILL IN THE BLANK: Write the answer that best completes the statement.

6. A -- is a share of a company's profits paid to people who own stock in the company.

7. -- is made up of 30 of the biggest and best-known companies in the U.S. The price of their stocks is regarded as an indicator of the health of the entire stock market.

8. -- is the animal name given to a steadily rising stock market.

9. In a stock table, the -- shows the difference between a stock's closing price on that day and its closing price the day before.

10. At the height of the Great Depression, -- percent of workers were unemployed, compared with about 4 percent today.

11. President -- refused to give federal aid directly to people thrown into poverty by the Depression.

12. President Franklin D. Roosevelt's various job and economic aid programs did push the economy in the right direction, but it took -- to fully revive the country's industrial and economic might.

    CRITICAL THINKING: Write your answers on a separate sheet of paper.

13. Unscrupulous stock market investors sometimes circulate false rumors about anything from the President's health to the death of the chief executive of a major company. What do you think motivates people to start such rumors?

14. In February, Alan Greenspan, chairman of the Federal Reserve Board, said it is difficult to build an accurate model of the economy because many of the economic decisions people and businesses make are irrational and cannot be predicted. What do you think Greenspan meant by...