1) Since 2008, the Federal Reserve Bank injected money into the economy to provide liquidity to banks and investors, via a program called Quantitative Easing, to help keep the economy stable. What Core Principle of Money and Banking applies to this example?

2)Your grandmother just passed and left you$50,000. You decide tokeep it in the bank whereyou earn interest of just over 2% per year. Your friend tells you to invest in the stock market, which earned over 26.5% in 2013. You, however,want to impress your friends and are thinkingabout buying aBMW X3 for$45,000. What factors should you consider in making a decision? What area of finance does this question relate to?

11) You have designed a new scarf that everyone seems to want. Every time you wear it, people ask, where did you get that scarf? You go home and think about starting a business, but later laugh at yourself because all you have saved is $3000. How can you possibly start a business to make these scarves? What are your options? What area of finance would this question relate to?