1. Life Insurance Needs for a Young Married Couple. Amy and Mack Holly from Rapid City, South Dakota, have been married for three years. They recently bought a home costing $212,000 using a $190,000 mortgage. They have no other debts. Mack earns $62,000 per year, and Amy earns $71,000. Each has a retirement plan valued at approximately $20,000. They recently received an offer in the mail from their mortgage lender for a mortgage life insurance policy of $190,000. Their only life insurance currently is a $20,000 cash-value survivorship joint life policy. They each would like to provide the other with support for at least five years if one of them should die. a.) What amount of coverage should they get? Explain. 2. What do companies' EPS tell an investor? Study examples of the return, earnings growth, dividends, included among other business ratios at Yahoo! Finance - then type PG in the enter symbol box (this is the stock symbol for Proctor & Gamble). Look at the data and try to grasp how the information could inform an investment decision. For example, as an investor, would you find the earnings-per-share ratio of encouraging or discouraging? What conclusions can you make about the company? Look at the stock price changes - in the graph on the right side of the page. You have the ability to look at the range over a period of time up to 5 years. What is the trend for stock price from 5 years ago until now? 3. How do you buy bonds? Read Investopedia's primer at What is the Quickest and Easiest Way to Buy a Bond? What is the minimum investment for bonds? What is the difference between investing in bonds and investing in a bond fund? Read eHow's explanation of how to buy bonds online at How to buy bonds.

4. https://www.youtube.com/watch?v=1RaNKq-0Slg

write about the video

5. https://www.edutopia.org/article/10-free-financial-literacy-games-high-school-studentsLinks to an external site.

play this game and talk about what the game was like, and how things worked out.

6. What is the definition of money in the United States? Does it correspond to what youthought it was before you read the textbook readings this week? What are the benefits of fiat money?

7. What determines the demand for money in the economy? How is it related to the liquiditypreference money of interest rates? Given this relationship, explain how monetary policy canaffect the demand of as well as supply for money through open market operations and Fed Funds interest rate changes?

8. Why might economic downturns caused by banking or financial institutions crises lead to longerand deeper recessions than those caused by other sectors of the economy, such as decline inmanufacturing

9. Explain how money works in an economy. How do banks operate as part of that process?

10 . Individuals receive deposit insurance to protect their money. The term "moral hazard" describes increases in risky behavior resulting from efforts to make that behavior safer. How does the concept of moral hazard apply to deposit insurance?

11. The Federal Reserve's main responsibilities are economic environment of low inflation and low unemployment. Explain three ways they try to do this. Do you think The Federal Reserve has been successful?

12. Politicians often urge people to vote to influence government policy. So, why do presidents typically reappoint Chairs of the Federal Reserve Board even when they were originally appointed by a president of a different political party?

13. In 2008, The Federal Reserve and US Treasury bailed out large commercial banks and financial companies, typically buying mortgages they held at 100% value. Soon after, almost 1 in 50 homes were foreclosed on with The Federal Reserve holding many of the mortgages. Do you believe this was equitable? Why or why not?

14. Why do you think that GDP does not grow at a steady rate, but rather speeds up and slows down? What caused the drop in 2020?

15.Why do you suppose that U.S. GDP is so much higher today than 50 or 100 years ago?Give at least two reasons why.

16.Why might per capita GDP be only an imperfect measure of a country's standard of living? (Hints: "Per capita" means the average for every person in the country. What is possibly not counted in GDP?)

17. How might you measure a "green" GDP? In other words, how would you account for climate change initiatives?

18. What role does geography and availability of natural resources play in GDP growth?