Money and Banking

  1. Explain the rule of 72 and the concept of compound interest.
  2. What does a bank look for in determining whether or not to make a loan to a private business venture? What does an investor look for in determining whether or not to make a loan to a private business venture.
  3. What is the difference between debt and equity loans/investments? What should a business owner consider when considering business capital in the form of debt or equity?
  4. Why are ethics important in finance?
  5. What is the difference between a 401K plan and a pension? Given a choice, which would you prefer and why?
  6. Discuss the pros and cons of the following:
    a. Stock market investing
    b. Savings
    c. Bonds
  7. We have all heard the phrase, “Cash is king.” What does this mean? Do you agree with this statement?
  8. What is the difference between microeconomics and macroeconomics? Provide an example of each.
  9. Price discrimination. How can this be a good thing for you personally?
  10. Illustrate (draw) and explain the Laffer Curve. Where are we currently as a nation (in your opinion) on the Laffer Curve?

Sample Solution

ACED ESSAYS