Question: 13. Why do financial assets show up as a component of household wealth, but not of national wealth? Why do financial assets still matter for

13. Why do financial assets show up as a component of household wealth, but not of national wealth? Why do financial

assets still matter for the material well-being of an economy?

16. Wall Street firms have traditionally compensated their traders with a share of the trading profits they generated. How

might this practice have affected traders' willingness to assume risk? What agency problem can this practice can en-

gender?

21. The average rate of return on investments in large stocks has outpaced that on investments in Treasury bills by about

8% since 1926. Why, then, does anyone invest in Treasury bills?

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