Question
1) 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
1) 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?
2)) 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?
3) 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?
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