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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