1. Which is a key feature of stochastic systems?

1. Predictability
2. Black swans
3. Randomness
4. Reliable formulas

2. What is the present value at 3 percent of $1,000,000 in one year? Round your answer to the nearest dollar and leave off the "$".
3. What did Milton Friedman claim was the purpose of firms?

1. Profit
2. Socially Responsible Investing
3. To provide employment
4. To motivate employees to work hard

4. Why does money invested at a fixed interest rate grow faster and faster?

1. Induction
2. Acceleration
3. Compounding
4. Reward is correlated to risk

5. Lack of income causes Jake stress, which reduces his ability to plan, leading to borrowing, which causes interest costs that increases scarcity and stress... This is known as..

1. Marshmallow fallacy
2. Scarcity trap
3. Debt cycle
4. Predatory lending

6. Select nudges that can increase savings behaviors.

1. Make saving into a game
2. Help people automate savings
3. Help people create salient goals
4. Force people to save money
5. Fine people who fail to save