Finance Questions. Answer all 4 multiple choice questions

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? Information is the basis for decision making Markets Set prices and allocate resources Stability improves welfare None of these 2. Your grandmother just passed and left you $50,000. You decide to keep it in the bank where you 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 thinking about buying a BMW X3 for $45,000. What area of Finance does this question relate to? Risk Requires Compensation Personal Finance Risk Management All of these are correct. 3. Apple's decision to invest billions in a driverless car is related to what area of finance? Personal Finance Risk Management Corporate Finance Public Finance 4. Jian Fe purchased 100 shares of Apple stock in 1997 for approximately 21 per share ($2,100). He sold them in 2011 for $150,000. What Core Principle of Money and Banking applies to this example? Time Has Value Markets Set Prices & Allocate Resources Risk Requires Compensation Information is the basis for decision making