Finance Questions. Answer all 4 multiple choice questions

1. Jose and his girlfriend Lucy both drive a Honda Accord, yet Jose's insurance premiums are $1400, while Lucy's insurance premiums are $900 for full coverage. What Core Principle of Finance applies to this example? Time Has Value Risk Requires Compensation Markets Set Pricing & Allocate Resources Stability Improves Welfare 2. The power of compounding relates to which core principle of finance? Risk Requires Compensation Time Has Value Information is the basis for decision making Markets Set Prices and allocate resources 3. All of the following statements regarding the six parts of the financial system are true except: Money is used to pay for purchases and to store wealth Financial instruments are used to transfer resources and risk Financial markets allow people to buy and sell financial instruments Financial institutions provide access to the financial markets, collect information, and provide a variety of other services Central banks stabilize the economy All of these statements are true. 4. The Metropolitan Transit Authority wants to expand the subway line from Lexington Avenue to 15! Avenue from 14th st to 42nd in Manhattan. The MTA needs to raise 120 million dollars to implement this project. What area of finance does this project relate to? Corporate Finance Risk Management Finance Public Finance All of these are correct