Chapter+11+Work

11.1 Read pages 271-275. Answer Questions # 1-8
 * 1) Investing promotes financial growth because because if you put the money in a savings account then the money will earn interest and will be able to in turn create more money.
 * 2) Savers provide the money that borrowers need so they share a symbiotic relationship and these financial intermediaries help the financial system because they all all the transfer of money between them to take place.
 * 3) Sharing risk, providing information, and providing liquidity
 * 4) The more money you invest the greater the risk is but the greater the risk the greater the money that could be returned from that investment.
 * 5) Because his money will be used in the grand exchange of money
 * 6) The time it will take for him to pay you back, the risk involved in the loan, and if he will be able to pay said interest.
 * 7) What is the risk and if that will be greater than the return against the loss of liquidity, will the investment flop or soar,
 * 8) The only risk is the sudden investment of money other than that everything is simply a positive outcome B) Risk is that there is no return C) the risk is that it might suddenly fail or that the money will help expand the business and you will have a big return.

11.3 Read pages 285-292. Answer Questions #1-9
 * 1) Two benefits are that companies pay you dividends for holding their stocks and that capital gains when you buy at a low and sell at a high. Two risks are dividends may be smaller than expected and that if the stock falls at a high you cant sell at a low without making negative profit.
 * 2) Two stock exchanges are the new york stock exchange and the NASDAQ. The NYSE is a fast paced stock exchange while the NASDAQ is a simple trading online exchange.
 * 3) S&P 500 and the Dow Jones industrial average are two popular indexes of stock performance
 * 4) The people were going into massive debt, companies starting having a surplus, and investors were handing out huge loans
 * 5) With it being all electronically it would allow for people to trade from their home but without stockbrokers the risks are greater with a computer.
 * 6) You might make it rich with the right decisions or it could simply fall and break what little funds you have.
 * 7) How good are they doing, what do they produce, what is some history on their stocks in the past
 * No, if he doesnt have the time he should become a daytrader.
 * 1) I would want to make a high risk high return in order to pay for my tuition.

CH 11 Review pg. 294 #1-9, 11-18
 * 1) Diversification
 * 2) Capital gain
 * 3) Coupon rate
 * 4) Bull market
 * 5) investment
 * 6) financial intermediary
 * 7) junk bonds
 * 8) Speculation
 * 9) portfolio
 * 10) They bring together savers and borrowers to channel funds for investment.
 * 11) Bond ratings show investors which bonds are doing good and and how safe they are or how much risk is involved
 * 12) NYSE, NASDAQ, and the Electronic stock
 * 13) Because you see that you have spread out of your money and the portfolio is filled with many great investments
 * 14) If there were no investments then the market could not exist without people openly investing money to open new stores and companies
 * 15) The higher the risk the higher the return but in hand the higher the risk the less people will take said risk.
 * 16) Too much debt and loans and risks
 * 17) When you invest in stocks it helps the companies grow and it helps theh economy
 * 1) When you invest in stocks it helps the companies grow and it helps theh economy