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1. 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

1. 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?

2. 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?

3. 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?

4. 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?

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