1 - award. 1 I) out of ............... Financial...

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Unformatted text preview: award. 1 I) out of ............... Financial instruments, such as stocks and ponds: :- are usually owned only oywealtny indiyiduals. who have substantial savings. °_‘ :- allowtnose with productive uses offunds (such as entrepreneurslto optain resources from those with excess funds {savers} r usually require a supstantial initial investment. usually 3 010.000 minimum. r are not owned py most individuals since the costs ofpuying and selling assets needed to construct and maintain a diversified portfolio are too high. Multiple-Choice Section. The Six Farts ofthe Financial System award: 2 I} out of In the financial system, usually control the quantity ofmoney and credit. r financial institutions 3* financialregulatoryagencies _‘ 5* government-run central banks r financial markets MultipleCholce Section: The Six Parts ofthe Financial System award: 3 0 out of ............... "Hamlets..." Financial institutions: r‘ generally lend fundsto all who fill out loan applications. afi 1* provide a wide array offinancial services to their customers. r exist mainlyto help government units borrow funds to cover budget deficits. :- are not regulated, which unfortunately led to the recentfinancial crisis. Multiple Choice Section: The Six Parts ofthe Financial System awa rd: 4- I} out of One wayto diversint asset holdings across economic sectors is to hold efi r mutualfunds '- insurance policies r“ mortgages rn money MultipleClIoi-ce Section: The Six Parts ofthe Financial System a we rd: 5_ 0 out of 10 points Policymakers at central banks: rs are in business to maximize profits. rs try to avoid volatility by keeping the average inflation rate steady, even ifit is at a high level. r* are mostly concerned with the level ofinterest rates atwhich the central government can borrow funds. ea r tryto keep inflation low and steadywhile also allowing for high and stable economic growth. Multiple Choice Section: The Five Core Principles of Money and Banking 3 w a rd: 6- 0 out of 1!} points Perusing the 'Research' page atyour online broker before buying stock is an example ofthe core principle that: r‘ markets determine prices and allocate resources. vs time has value. 9* r- information isthe basis for decisions. rs riskrequires compensation. Multiple Choice Section: The Five Core Principles of Money and Banking awe rd. 7- I) out of 10 Points Assets whose values fluctuate Widely are usually said to be riskierthan those whose fluctuations In value are smaller Which ofthe lollowmg groups ofassets is listed from least riskyto most risky? F Cash‘ betting yourlife sayings at a casino rouletle wheel, shares ofMicrosofl efi r Cash‘ shares OfMICl'OSOfl. betting yourlife sayings at a casino roulette wheel. I“ Shares ofMicrosofl, cash‘ betting your life sawngs at a casino roulette wheel '- Betting your life savings at a casino roulette wheel; shares ofliticrosott; cash MultipleClmice Section: The Five Core Principles otMoney and Banking 10 points pm pa: sham Number of Shams Market For Intel Corp stock The dIagram above represents an IrIItIal equIlIbrIum for shares ofstock In lntel Corp. the computerchlp maker The supply curve shows the number ofshares Intel Issues as Its stock prIce varIes and the demand curve shows the numberofshares Investars wantto purchase at dIfierent stack prIces lllntel annaunces that It cannat match a rIval's prIce cut. r its prIce WIll fall due to a rightward shIft In the supply curve 5* Its prlce WIll use due to a leflward shIfl In the supply curve ea r Its prIce wul fall due to a leftward shItt Inthe demand curve 5* its prlce WIll rise due to a rightward shifl Inthe demand curve WW Eamon The PI a cure F'nncibleajflluas Emulsion award: 9- I} out of 10 points Which ofthe following best reflects the core principle thattime has value? ea 5* You win a lotter and needto choose whetherto take the winning payments over atwentyyear period or as a lump sum today. 5- The economyfalls into recession andthejob market fornew college graduates collapses. 5“ Your accounting professorteaches a section on how to identifyfraud in a bank's annual report. r“ You learn how to trade stock options in yourt’Inance class to ofisetfluctuations in your retirementportfolio. MultipleChoice Section: The Five Core Principles ofluloney and Banking award: ‘I 0 0 out of ' 1!} points Yourfriend won't bungeejump 'even for a million dollars' is an example ofthe core principle that: r“ markets determine prices and allocate resources. r“ stabilityimproveswelfare. °_. r“ riskrequires compensation. r“ information is the basis for decisions. MultipleClIoice Section: The Five Core Principles oflvloney and Banking ...
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1 - award. 1 I) out of ............... Financial...

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