Read "Money and Banking" Article attached below.

Answer the following questions:

What two factors are important to making the principle of "compounding" work?

What evidence indicates that corporate profits will rise?

Making Comparisons If the average historical return on a stock market is 11%, why doesn't everyone put their money into stocks rather than into a savings account?

Analyzing Information Agree or disagree with the statement: Stocks are the best long-term investment value. Why?

Part 2: Financial Markets

Read "Financial Markets" attached below.

Answer the following questions:

Why is the first rule of investing to only invest money that won't be needed for at least 5 years?

Why doesn't the theory of averages work for investing in the Dow Jones Industrial Average or the Standard & Poor's 500-stock Index?

Making Comparisons What is the difference between a managed mutual fund and an index mutual fund?

Drawing Conclusions Has this article persuaded you to invest your money in individual stocks or mutual funds? Why?