QUESTION 10 What is the formula for calculating the present value of a future income stream at a specific discount rate? PV-Future Value divided by the discount rate PV = the sum of a stream of payments discounted annually over the term of years of the income stream. PV-Future Value multiplied by the discount rate PV = a calculation of the time value of money, without reference to a discount rate or risk QUESTION 11 What are the two principal goals of the Federal Reserve Bank? 0 Monetary policy and fiscal policy Currency issuance and bank registration Money supply and currency manipulation Managing the money supply and supervising the banking system QUESTION 12 In 1934, Congress enacted the Glass-Steagall Act, which prohibited commercial banks from using depositors' money to speculate in stocks. More than six decades of financial stability ensued. Why was this law repealed in 1999? Because economists from elite universities regarded the "Chinese wall" separating commercial and investment banks as outmoded. Because financial services industry leaders demanded more insurance. Glass-Steagall was concerned with international trade, not with finance. Because federal revenue was precipitously declining, necessitating bank taxation at a new level as part of the Tax Reform Act of 1999. QUESTION 13 in the video "Capitalism hits the fan we saw and heard Professor Wolf describe the basis for American exceptionalism - namely the trend that lasted from 1820 to 1980 that saw incremental gains in worker productivity shared with workers in the form of higher and higher wages. What four conditions, issues, or forces came about that changed this trend? Globalization, monetary reform, automation, and the widespread adoption of the tractor in agriculture. Computerization, credit-default swaps, mortgage-backed securities, and the repeal of the Smoot-Hawley Act Globalization, automation, and the and the natural gas price collapses of 1973 and 1979. Globalization, automation, declining unionization of the workforce, and the rise in unsecured consumer debt.