Question

9. A good strategy for planning a comfortable retirement is:
	a. Plan to live on Social Security benefits.
	b. Save three to six months worth of living expenses.
	c. Save 10 to 15 percent of your income while working to fund retirement spending.
	d. Start saving for retirement in your 50s, when you reach your peak earning years.

10. Compound interest is:
	a. The interest rate adjusted for inflation.
	b. The price of using someone else's money.
	c. The original amount of money deposited or invested.
	d. Interest that you earn on your principal and on the interest you've already earned.

11. In a closed economy, the formula S=I implies that an increase in saving will result in:
	a. Firms' increased investment in physical capital.
	b. Firms' decreased investment in physical capital.
	c. Investors' increased investment in stocks, bonds and mutual funds.
	d. Investors' decreased investment in stocks, bonds and mutual funds.

12. When the U.S. Government borrows money to finance deficit spending,
	a. It takes a loan from a large foreign bank.
	b. It takes a loan from a large American bank.
	c. It sells IOUs called U.S. Treasury securities.
	d. It receives a loan from the central bank of another nation.

Answer 1

Ans.9- Save 10 to 15 percent of your income while working to fund retirement spending.

Ans.10- Interest that you earn on your principal and on the interest you've already earned.

Ans .11- Firms' increased investment in physical capital.

Ans.12-  It sells IOUs called U.S. Treasury securities

If you have any doubt feel free to ask.