SI Review!
Chapter 15 + 17
Attendance
Business Cycles - KAHOOT
• https://create.kahoot.it/share/the-business-cycle-video-and-quiz/31851cf0-cafc-4432-908fbf6dce7b5d62
FINANCIAL SECTOR
DISCUSSION QUESTION:
Deposit insurance offers a guarantee to savers. Discuss the
incentives created by the insurance and the impact on the
loanable funds market.
Which bond probably pays a higher interest rate?
a) A 30 year bond
b) A 10 year bond
PART 2
c) A bond issued by Nike
d) A bond issued by the U.S. government
Funds/Fees
The stock market yielded an average annual rate of return of
18.6% in the 1990s. You invested $1,000 at the beginning of
the decade and received the returns you earned every year.
Calculate the value of your investment at the end of the
decade.
REMINDERS/REVIEW
The financial sector
• reallocates resources from savers to borrowers.
• shifts resources through time.
• reallocates, spreads, and reduces risk.
• creates liquidity.
• creates interdependence.
Any Questions?
• Any topics you are struggling/want to go over next session?
• Does this time work well for everyone?