1) What area of Finance is concerned with helping individuals prepare for retirement?
2) Apple’s decision to invest billions in a driverless car is related to what area of finance?
3) A farmer seeking to financial protection in the event of a catastrophic hurricane would involve what area of finance?
4) Suppose medical research confirms earlier speculation that red wine is good for you. Why would banks be willing to lend to vineyards that produce red wine at a lower interest rate than before?
5) Jose and his girlfriend Lucy both drive a Honda Accord, yet Jose’s insurance premiums are $1400, while Lucy’s insurance premiums are $900 for full coverage. What Core Principle of Money and Banking applies to this example? Why are the insurance premiums different?
6) Jian Fe purchased 100 shares of Apple stock in 1997 for approximately 21 per share ($2,100). He sold them in 2011 for $150,000. What Core Principle of Money and Banking applies to this example?
7) Lana applied for a mortgage so that she could purchase a coop apartment in Queens Village. After sending in her tax returns, pay stubs, bank statements, and a copy of her license, her application was rejected. What Core Principle of Money and Banking applies to this example?
8) Brooklyn and Queens suddenly became the hottest neighborhoods on the East Coast. Prices of homes have risen dramatically, priced so high that the average person simply can no longer afford a home. It seems no one can understand why prices of homes and also rents have gone up so much in Brooklyn and Queens. What Core Principle of Money and Banking applies to this example?
9) Since 2008, the Federal Reserve Bank injected money into the economy to provide liquidity to banks and investors, via a program called Quantitative Easing, to help keep the economy stable. What Core Principle of Money and Banking applies to this example?
10) Your grandmother just passed and left you $50,000. You decide to keep it in the bank where you earn interest of just over 2% per year. Your friend tells you to invest in the stock market, which earned over 26.5% in 2013. You, however, want to impress your friends and are thinking about buying a BMW X3 for $45,000. What factors should you consider in making a decision? What area of finance does this question relate to?
11) You have designed a new scarf that everyone seems to want. Every time you wear it, people ask, where did you get that scarf? You go home and think about starting a business, but later laugh at yourself because all you have saved is $3000. How can you possibly start a business to make these scarves? What are your options? What area of finance would this question relate to?
12) What part of the Financial System monitors the economy?
13) The Metropolitan Transit Authority wants to expand the subway line from Lexington Avenue to 1st Avenue from 14thst to 42nd in Manhattan. The MTA needs to raise 40 million dollars to implement this project. What area of finance does this project relate to?
14) The participants of an economy include:
15) What is GDP? Why is GDP important in Finance?