Overhaulin'

Need help with Class..... thank you...?

2. Some people have money; some people need money. Explain how the financial system links these people together. 3. Discuss the statement: “Since I have high credit card limits, I have lots of money.” Are credit cards money? 12. Rank the following assets in term of their liquidity. From least to most liquid: cash, savings deposits, gold, a house, a rare painting, a checkable deposit. Explain you rank order. 13. Is each of the following an example of direct or indirect financing? A. John purchases stock from the biotech firm that employ’s him. B. Mary purchases a newly issued government security. C. John places $3,000 in a savings account at the local savings and loans. D. John receives a loan from Mary. E. John receives a loan from a friendly savings bank. 1. Economics is typically broken down into microeconomics and macroeconomics. a. Microeconomics is the study of individual households and firms in a particular market. B.Macroeconomics is the study of individual households and firms in a particular market. c. Macroeconomics is the study of the causes and consequences resulting from the sum of all decisions made by households and firms in the economy. d. Both a and c are correct. 2. Finance is concerned with a. The study of the financial or monetary aspects of the production, spending, borrowing, and lending decisions of an economy. b. How new funds get created by financial intermediaries in the borrowing process. c. How the financial systems coordinate and channel the flow of funds from lenders to borrowers (and vice versa). d. All of the above. 3. An example of direct finance would be a. Your professor�s deposit of his or her salary in a checking account. b. Your purchase of stock in IBM. c. Your use of an ATM to get cash. d. Contribution into your pension fund. 4. An example of Indirect finance would be a. You purchasing a corporate bond issued by PepsiCo. b.You lending money to me to start a publishing company. c.You borrowing money from Norwest Bank to buy a used car. d.You borrowing money from a friend to by my 71 Chevy. 5.What do economists mean by capital? a.Financial assets b.Intangible assets c.Cash d.Machinery and equipment 6. Deregulation a.Is the removing or phasing out of some existing regulations b.Is the implementing or phasing in of new regulations c.Is any regulation, which pertains to accounting debits. d.Was a trend in the financial system prior to the 1970�s, but the trend of the 1970s and 1980s has been toward greater regulation 7. Which of the following would be an example of saving? a.The purchase of this study guide for your class b.The purchase of a corporate bond c.Paying your rent d.Using coupons to buy diapers at a department store. 8. Money a.Is only cash and currency. b.Is cash, currency, and credit cards c.Is something, which is acceptable in payment. d.Is income not spent on consumption 9. The difference between Surplus Spending Units (SSUs) and Deficit Spending Units (DSUs) can best be described by the following: a.DSUs spend less on consumption and investment good than their current income. b.SSUs spend more on consumption and investment good than their current income. c.SSUs need to borrow (or spend savings). d.DSUs need to borrow (or accumulate savings). 10.Exhibit 1-2 in the text shows the uses of savings for households and businesses. Which of the following is false? a.Savings may be used for investment in newly constructed houses. b.Savings is any income not spent on consumption by consumers or any income not distributed to the owners of business firms. c.Businesses may use savings for investment in new capital (plant and equipment). d.Income distributed to the owners of business firms is considered savings, since the owners are likely to retain it.

Public Comments

1. Sorry, but I'm not going to do your homework. Nor take an exam for you. You need to do your own work!! And FYI, for all you know, I could be your teacher because I do teach economics. And yes, I've caught students cheating this way over the years. So remember, there are plenty of teachers surfing the net. And yes, teacher talk to other teachers. So we do share!! A big warning to all of you out there who do things like this poster. Teachers are out there surfing these same sites! And we're more computer and tech literate today. Remember, we update our skills and learn what students are doing. It's part of our professional development activities, which is a regular part of our jobs.
2. Wow too much.