All categories

3 years ago

Why financial literacy should be taught in schools

1 answer:

6 0

Financial literacy classes teach students the basics of money management: budgeting, saving, debt, investing, giving and more. That knowledge lays a foundation for students to build strong money habits early on and avoid many of the mistakes that lead to lifelong money struggles.

You might be interested in

Explain how scarcity, tradeoff decisions, or opportunity costs are relevant to Charles and Ebony’s budget

bixtya [17]

Scarcity is relevant to Charles and Ebony's budget because it helps them make a decision on how to spend their money on the urgent needs while ignoring the other important things which comes with a burden of future cost.

Tradeoff decisions would help Charles and Ebony to analyze the amount of money that they must set out every month for essentials, and discretionary money which is the money left over.

Opportunity cost

Opportunity cost looks at affordability given the prices of goods and the individual's income. Opportunity cost measures cost in terms of what must be given up in exchange.

Therefore the factors of scarcity, tradeoff and opportunity cost will affect Charles and Ebony's budget because they have to factor in the effects of these economic forces on the budget.

Learn more about Scarcity at brainly.com/question/3081250

#SPJ1

3 0

1 year ago

Katherine gives piano lessons for $15 per hour. She also grows flowers, which she arranges and sells at the local farmer's marke

katrin2010 [14]

Answer:

The accounting profits are $100, and the economic profits are $25

The option C. is correct

Explanation:

Accounting profit: The accounting profit is computed by subtracting the sales amount with the expenses.

In mathematically,

Accounting profit = Sales revenue - expenses

= $150 - $50

= $100

In this, the expense is the seeds cost

And, the economic profit is calculated by subtracting the accounting profit with the implicit cost

In mathematically,

Economic profit = Accounting profit - implicit cost

= $100 - $75

= $25

The implicit cost is computed by

= Per hour piano charges × number of hours

= $15 × 5

= $75

Hence, the accounting profits are $100, and the economic profits are $25

7 0

3 years ago

Which of the following statement completions is CORRECT? If the yield curve is upward sloping, then the marketable securities he

Blizzard [7]

Answer: consist mainly of short-term securities because they pay higher rates.

Explanation:

The yield curve is a curve depicting several yields to maturity or the interest rates across several contract lengths for identical debt contract. The yield curve shows the relationship that exist between the interest rate and time to maturity,

If the yield curve is upward sloping, the marketable securities which are held in a firm's portfolio, and assumed to be held in case of emergencies will consist of short-term securities in order to reduce interest rate risk. As the yield curve is upward sloping, therefore long term securities will be expected to have higher interest rate in the future and therefore a price decline. Because the securities are in case of emergency, it is advisable to have short term securities.

6 0

3 years ago

The steps in the process of stereotype formation and maintenance in order are:

Brilliant_brown [7]

Expectations, categorization, inferences, maintenance.

Categorization, inferences, expectations, maintenance.

Inferences, categorization, expectations, maintenance.

Categorization, expectations, inferences, maintenance

4 0

3 years ago

You're trying to save to buy a new $230,000 Ferrari. You have $32,000 today that can be invested at your bank. The bank pays 5.5

s344n2d4d5 [400]

Answer:

37 years

Explanation:

We know,

Future value = Present value (1 + r)^n

Given,

Future value, FV = $230,000;

Present value, PV = $32,000;

Interest rate, r = 5.5% = 0.055;

We have to determine how many years later I can purchase the Ferrari.

Now, putting the values into the formula, we get,

FV = PV × (1 + r)^n

or, $230,000 = $32,000 × (1 + 0.055)^n

or, $230,000 ÷ $32,000 = (1 + 0.055)^n

or, 7.1875 = (1 + 0.055)^n

or, log 7.1875 = n × log 1.055

or, n × log 1.055 = log 7.1875 [Changing the side]

or, n = log 7.1875 ÷ log 1.055

Using financial calculator/Scientific Calculator,

or, n = 0.8566 ÷ 0.0233

Therefore, n = 36.76 or almost 37 years.

4 0

3 years ago