1. Question 2

   5 Points

   Use the following information to answer questions 2 and 3.

   Currency held by public: $400M

   Savings deposits: 300M

   Checking deposits: 100M

   Travelers checks: 50M

   Shares in retail money market mutual funds: 80M

   2. What is the M1?

   Select the correct answer

   1. $450M

   2. $550M

   3. $630M

   4. $930M

2. Question 3

   5 Points

   Use the following information to answer questions 2 and 3.

   Currency held by public: $400M

   Savings deposits: 300M

   Checking deposits: 100M

   Travelers checks: 50M

   Shares in retail money market mutual funds: 80M

   3. What is the M2?

   Select the correct answer

   1. $450M

   2. $550M

   3. $630M

   4. $930M

3. Question 4

   5 Points

   Mr. and Mrs. Jones buy a house for $425,000. If the house appreciates at 5% annually, what would be the value of the house in 10 years?

   Select the correct answer

   1. $496,246.98

   2. $542,318.52

   3. $692,280.22

   4. $743,856.38

4. Question 5

   5 Points

   If Joe saves $5,500 per year for 30 years and earns 8% on his investment, how much money will he have after 30 years?

   Select the correct answer

   1. $55,344.61

   2. $74,824.91

   3. $342,861.29

   4. $623,057.66

5. Question 6

   5 Points

   Mr. and Mrs. Davis needs to have $100,000 to start their own catering business in 10 years. They expect to earn 7.5% annually on their investment. What amount do they need to have today so that they can reach their financial goal of having $100,000 in 10 years?

   Select the correct answer

   1. $48,519.39

   2. $52,829.06

   3. $65,721.42

   4. $69,723.46

6. Question 7

   5 Points

   Sarah invested $50,000 in the stock market 9 years ago. If earned 11% on her money annually, how much is her investment worth today?

   Select the correct answer

   1. $84,210.35

   2. $96,346.78

   3. $127,901.85

   4. $192,245.32

7. Question 8

   5 Points

   Since the early 2000s, Ecuador has been officially and legally using the US dollar as its currency. Such practice is knows as:

   Select the correct answer

   1. legal tender

   2. barter system

   3. dollarization

   4. crypto-currency

8. Question 9

   5 Points

   Assets accepted for repayment of debt to the government as well as private transactions is known as:

   Select the correct answer

   1. barter system

   2. legal tender

   3. dollarization

   4. repatriation

9. Question 10

   5 Points

   The fact that money received today has a higher value than money received in the future is known as the concept of:

   Select the correct answer

   1. dollarization

   2. backward integration

   3. forward integration

   4. time value of money

10. Question 11

    5 Points

    Bonds issued by the federal government are known as:

    Select the correct answer

    1. municipal bonds

    2. treasury bonds

    3. corporate bonds

    4. foreign bonds

11. Question 12

    5 Points

    Bonds issued by state and local governments are known as:

    Select the correct answer

    1. municipal bonds

    2. treasury bonds

    3. corporate bonds

    4. foreign bonds

12. Question 13

    5 Points

    The par value (or the face value) of a bond is generally:

    Select the correct answer

    1. $100

    2. $500

    3. $1,000

    4. $5,000

13. Question 14

    5 Points

    The stated annual interest rate that the bond issuer is obligated to pay the bond holders is known as:

    Select the correct answer

    1. face value

    2. coupon rate

    3. dividends

    4. sinking funds

14. Question 15

    5 Points

    A bond maturing in 15 years at a par value of $1,000 has a coupon rate of 7% paid semi-annually and current yield of 6%. What is the price of the bond?

    Select the correct answer

    1. $972.71

    2. $989.26

    3. $1,024.52

    4. $1,098.00