Questions from Financial Markets

Q: If the MPC is 0.7 and business investment spending decreases

If the MPC is 0.7 and business investment spending decreases by $10, determine what will happen to total spending according to the spending multiplier.

Q: If savings is greater than investment, what is the implication

If savings is greater than investment, what is the implication for aggregate demand?

Q: If the total market value of an open-end mutual fund

If the total market value of an open-end mutual fund is $2,500 and there are 100 shares outstanding at the end of trading on Monday, what would the NAV of the fund be?

Q: Bob is confused about how the pricing of the open-end

Bob is confused about how the pricing of the open-end mutual fund he owns is actually calculated. Bob sees that stock prices have increased, yet the market value of his mutual fund, as determined by t...

Q: You read a story in the Financial Times reporting that mutual funds

You read a story in the Financial Times reporting that mutual funds that invest primarily in equities are currently holding a high level of cash. Based on this, where do many analysts think stock pric...

Q: Trudy, who lives in New York, is concerned that her

Trudy, who lives in New York, is concerned that her investment portfolio suffers from the “home country bias.” Explain what Trudy is worried about and how might she use mutual funds to address her con...

Q: Charlotte is fully vested in her defined contribution pension plan where she

Charlotte is fully vested in her defined contribution pension plan where she works. What will happen if Charlotte decides to quit her job and go work for a different employer?

Q: Bob lives in Texas, is 64 years old, and is

Bob lives in Texas, is 64 years old, and is close to retirement. What type of mutual funds might be best for Bob? Why?

Q: Grace is disappointed with the relatively low rate of return she is

Grace is disappointed with the relatively low rate of return she is earning on her government bond mutual fund. She sees another bond fund that invests in corporate securities offered by firms that ar...

Q: Jason is thinking about purchasing some mutual fund shares, but he

Jason is thinking about purchasing some mutual fund shares, but he is confused by the terminology. How would you explain to Jason the difference between a mutual fund with loads and a no-load mutual f...