1. Why is any amount of money in your hand today worth more than an amount you are promised tomorrow?
   1. Because you can keep your money safe under the pillow
   2. Because a dollar in hand today can be invested today and it can earn interest such that you can own more dollars in the future
   3. Because money in hand today does not incur any tax
   4. None of the above
2. When a country imports more than it exports what describes this phenomenon?
   1. Local trade surplus
   2. Foreign trade deficit
   3. Foreign trade surplus
   4. Local trade premium