Not counting Social Security, should the government force people to save money in personal accounts for their eventual retirement?

Q: Write the net present or future worth expression?

A: The Net present value is the present value of a future sum of the money in the economy. The net…

Q: Lowering the taxes on income can help in expanding the activities in the financial market.  True or…

A: Tax in the compulsory payment made by the individual or institution to the government without…

Q: People should buy bonds when they think that interest rates are as high as they will go.

A: A bond is a financial instrument that allows an issuer to raise capital by borrowing money from…

Q: What is net worth?

A: ANS Net worth (NW) is the value of an asset after deducting the liabilities. It is what we own minus…

Q: Would a dollar tomorrow be worth more to you today when the interest rate is 20% or 10%?

A: Given the interest rates are 20% and 10%.

Q: When interest rates decrease, how might businesses andconsumers change their economic behavior?

A: The interest rate is the rate charged by the lender on the asset lend by them. The asset lend can be…

Q: If the interest rate is 8%, how much households and firms will want to borrow?

A: The households and firms that want to borrow imply the demand for funds in the market. Thus we will…

Q: what are bonds in the top four categories referred to?

A: Bond is generally a loan that is made by a borrower that is the company to an investor. It…

Q: The cost of money is established and measured by an interest rate. True or false?

A: Answer - Cost of Money -  Cost of the money is amount of interest can be charged on the money…

Q: Providing tax shelters through investment is one of the main functions of the financial system. *…

A: Tax shelters are necessary, despite the fact that they are sometimes seen negatively. Individuals…

Q: What are the two factors that determine what borrowing will cost?

A: Two factors that determine what borrowing will cost are -  Principal Amount : It is the original…

Q: Is an economy both social and a financial system?

A: An economic system, also known as an economic order, is a method of producing, allocating resources,…

Q: What are interest groups and which ones are most powerful?

A: What are interest groups and which ones are most powerful?

Q: Why might an investor prefer to invest indirectly rather than directly?

A: Direct or indirect investment both leads to pay offs, it depends on the investor about what is…

Q: Why do the creditors generally charge higher interest rates on new borrowing?

A: The interest rate is the amount that the creditor charges with the principal from the borrower to…

Q: If mortgage rates fell to 0 percent ("free money"), why might consumers still hesitate to borrow…

A: In general, the term mortgage rates refer to the interest rate charged by the financial institution…

Q: How is saving important?

A: Saving: - Saving is that part of income that is not consumed or kept as reserves by the people in an…

Q: What caused the Stock Market Crash, when did it happen, and how did life in America change as a…

A: stock market crash of 1929, similarly called the Great Crash, a sharp lessening in U.S. protections…

Q: How does the flow of funds help an economy grow and develop?

A: Meaning of Economic Growth: The term economic growth refers to the growth towards the internal…

Q: How could people be persuaded to start saving for retirement?

A: Retirement planning is the process of putting money aside, investing it, and then distributing it in…

Q: The need for utilizing money, is an indication of what kind of scarcity?

A: The scarcity arises from the shortage of the various goods and services. The scarcity would result…

Q: How would you explain the financial functions as a social imperative in a country like South Africa?

A: Financial function Financial management includes the Finance Function. The practice of controlling…

Q: What impact will the economy face if institutions keep on showing more flexibility on giving loans…

A: The economy is the study related to choice and scarcity.

Q: What is Financing Activities? Give some examples?

A: Financing activities are investments containing long-term commitments, owner's equity and short-term…

Q: Why should all countries participate and follow this GIPF (Government Institutions Pension Fund)?…

A: GIPF: Government Institutions Pension Fund The end of 1989 saw the creation of the Government…

Q: On a distant moon colony, all decisions about government policy are made by a computer. The interest…

A: When a decision has to be made by a computer regarding government policy, then the certain limits…

Q: How do public pension plans differ in other countries? Has privatization worked overseas?

A: The market value of final products and services produced within the economy within a certain time…

Q: Why is it incorrect/inappropriate to say that governments “invest” the “national savings?”

A: National savings refer to the total savings in an economy i.e by the public as well as private…

Q: What is the effect of a cashless society??

A: A cashless society is a state of the economy in which financial transactions are conducted using…

Q: Can a financial market be complete and allow for arbitrage opportunities at the same time?

A: Arbitrage is a speculation technique where a financial backer all the while trades a resource in…

Q: The government, business and household sectors are all suppliers of funds into the financial system.…

A: A financial system is a platform for transactions related to funds between financial market…

Q: "People are poor because they don't have very much money. Yet, central bankers keep money scarce. If…

A: Money supply is the total money circulated in the economy in a given period of time. The central…

Q: What role do commercial banks play in the development of an economy

A: The commercial banks play a vital role in any economy. Developed commercial bank systems ensure and…

Q: It can be agreed that aligning the incentives of the agent with those of the principal can lead to…

A: The principal-agent relationship is widely used at the marketplace when the interest of both the…

Q: What is the meaning of Net Present Worth?

A: The net present worth also known as the net present value calculated the difference between the…

Q: Should governments pay off their debts and not be allowed to borrow any more except under special…

A: money borrowed by the government generally to provide public services: The government intends to use…

Q: How much is the unsused lending capacity?

A: Reserve ratio is the percentage of deposits, commercial banks required to keep in hand as liquid…

Q: What do you understand by social security? What do you understand by the “pension crisis” and how…

A: Social security is the monetary form of assistance provided by the government for the public.It…

Q: How dose a bank plays a role in inverstment

A: A bank is a financial entity with the authority to accept deposits and provide loans. Retail banks,…

Q: What is the opportunity cost of borrowing?

A: Opportunity cost is the value of anything when a new course of action is selected. Simply put in…

Q: A person in the U.S. with a stable job making $100,000 can get a loan to buy a new car at about 4%…

A: Nominal interest rate is the cost of borrowing  . And it is given on the basis of ability to pay the…

Q: How does an Islamic bank deal in Mudaraba?

A: Solution: Mudarabah: It refers to a kind of a partnership in which one partner gives another to…

Q: Which type of savings account and interest rate are an incentive for people to save money?

A: A savings account can be a safe deposit box that you do not intend to use immediately. Savings…

Q: How big is a billion?

A: The money supply in an economy is controlled by the central bank. The central bank used various…

Q: When financial analysts talk about “firm value” or “market value”, what views do they take? What are…

A: The value, or market capitalization, of an organization, is one piece of the organization's…