Monetary Economics (ECS3701) Examination Questions and solutions2023

Which is the most effective solution when planning for retirement? - -Start as soon as possible to maximize savings -The marketing mix, also known as the Four Ps of Marketing, consists of product, price, promotion, and _[blank]_. - -Place -Which type of expense can change based on use or volume? - -Variable -Joe works full time as a carpenter and brings home $3,000 per month. He owes a total of $1,500 in fixed expenses every month, which includes items such as rent and insurance. If Joe had $1,000 in variable expenses such as groceries and entertainment, what would be his ending balance? - -$500 -What was the original purpose of savings and loan associations? - -a way for groups of people to pool their money so that each member could build or buy a home -What are some advantages of using a debit card as opposed to cash? - -Debit cards can help track spending carefully and accurately. Debit cards can be replaced if they are lost. -Alan and Samuel each have a 30-year mortgage. Both mortgages were approved at the same time. Alan pays 5 percent interest, while Samuel only pays 3.5 percent. If Alan and Samuel are the same age and make the same amount of money, why is Alan paying more in interest? - -Samuel has a better credit score, so his interest rate is lower. -Which is an example of an unsecured revolving loan? - -credit card -How are whole life insurance and term life insurance different? - -Whole life insurance does not expire, but term life insurance does. -What role does income tax serve for the federal government? - -It is the largest source of revenue for the federal government. -Which are benefits of a mixed market economy? - -A mixed market economy provides a wide variety of products and services. A mixed market economy provides some regulation to protect consumers. -Manny wishes to sell candy bars to his classmates to earn extra money. - -why to produce