Stock Market Declines Preceded a Full-Blown Financial Crisis

question 17

Multiple Choice

Stock market declines preceded a full-blown financial crisis

• A)in the United States in 1987.
• B)in the United States in 2000.
• C)in Indonesia in 1997.
• D)in all of the above.
• E)in none of the above.

Understand the concept of present value and how it is affected by interest rates and time.

Apply present value formulas to calculate how much an individual should invest today to achieve future financial goals.

Calculate the present value of annuities and deferred annuities.

Determine the size of regular withdrawals or payments that can be made from an investment or loan.

---

Definitions:

Private Speech

Verbal communication directed at the self, typical in early childhood, and used for self-guidance and regulation.

Self-Regulation

An individual’s ability to prevent himself or herself from making a dominant, preferred or automatic response in order to perform a nondominant response, such as when a hungry person is served food at a restaurant but waits to eat until everyone at the table has been served.

Precursor

An element, condition, or event that precedes and indicates the approach of something.

Recognition Skills

are the abilities to identify and acknowledge information, objects, or situations based on previous experiences or knowledge.