You take out a student loan $5000 at 5% interest. What is the amount you will owe in 10 years if the interest compounds monthly? (Round to the nearest dollar) 1. $8235 2. $8750           3. $9012            4. $9800

What is the function of money as a medium of exchange? 1. Store of value 2. Unit of account 3. Facilitates transactions 4. All of the above

Which list ranks assets from most to least liquid?     stocks, money, cars, houses stocks, cars, money, houses money, stocks, cars, houses money, cars, houses, stocks

We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics but the credit risk associated with Bond A is lower than the credit risk associated with Bond Bond A was issued by the city of Philadelphia and Bond B was issued by New York Bond A has a term of 20 years and Bond B has a term of 2 years All of the above are correct

In financial markets, when many investors buy or sell assets simultaneously because they believe others are doing the same, it is often referred to as: 1. Diversification 2. Arbitrage 3. Herding behavior 4. Risk aversion

Which of these is not true regarding banks? They are a safe place to store money They always act as the lender while their customers are the borrowers. You offer easy access to your money They offer low interest rates

You use dollar bills to pay the owner of a restaurant for a delicious meal. The currency   has intrinsic value. The exchange is not an example of barter has intrinsic value. The exchange is an example of barter has no intrinsic value. The exchange is an example of barter has no intrinsic value. The exchange is not an example of barter

Loss aversion is a behavioral concept that suggests: 1. People are more willing to take risks when facing potential losses. 2. People feel the pain of losses more than they experience pleasure from equivalent gains. 3. People consistently make perfectly rational decisions when faced with potential losses. 4. People are indifferent to whether they gain or lose in economic transactions.

Mia puts money into a piggy bank so she can spend it later. What function of money does this illustrate? store of value medium of exchange unit of account None of the above is correct

Which of the following statements regarding GDP is correct?     1.  GDP includes factory production, but not any harm that may be inflicted on the environment.     2.  GDP accounts for all activities taking place outside markets.     3. GDP is a good measure of economic well-being for all purposes.       4.  GDP provides detailed information about the distribution of inc