FP/100 Economic Concepts Worksheet

   Economic Concepts Worksheet Economics Concepts Review your Week 1 Learning Activities, abnormally Ch. 1 of Focus on Claimed Finance, Khan Academy Resources and Video Reflection, and Investopedia Resources amid in the “Additional Reading and Video Resources” articulation on your advance page. Respond to anniversary of the afterward questions in your own words. Anniversary acknowledgment should be at atomic 50 words. 1. A nominal absorption amount is authentic as “the befalling amount of captivation or application money.” Explain what you accept this analogue to mean. 2. When the abridgement is in a recession, the Federal Reserve usually cuts absorption rates. Why would the federal government do this?  3. How does your extenuative and spending contour change depending on the accompaniment of the economy, i.e., whether the abridgement is in a recession against expansion? Do absorption ante comedy a role in your decisions? Why or why not? 4. If absorption ante are at a akin of 1% and accepted aggrandizement is 2%, would you adopt extenuative or spending your money? Justify your answer. Behavioral Economics Concepts Review your Week 1 Learning Activities, abnormally the Investopedia Resources on Behavioral Finance: Anchoring, Mental Accounting, Herd Behavior, and Prospect Theory amid in the “Additional Reading and Video Resources” articulation on your advance page. Choose two of the afterward concepts discussed in this week’s materials.  · Anchoring  · Mental accounting  · Herd behavior · Prospect theory   Define anniversary in your own words and explain how anniversary could administer to your claimed banking and acclaim decisions. Your absolute acknowledgment should be at atomic 100 words. 

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