1. Inflation causes money to loss its.............with the passing of time.

A coloring and get lighter bills B three zeros

C ability to be stored D ability to purchase good and services

2. Inflation is a bad thing for the economy when...

it is under control and close to target

A B it is never bad for the economy.
values.

it is negative and it causes prices to it is super high all the time and prices
C decrease one time. D can´t be predicted even within a month.

3. An effective rate of inflation needs to be compounded based on...

the number of months in a year

the number of periods we are
A
B interested in using (12 for months, 52
for weeks, etc).

C using Euler´s number D the number of weeks in a year

4. If I know the APR of a loan is 5% yearly that means that the monthly rate is ..

A 5/12 B .05/12

C 50/12 D .50/12

10. Marcos´parents saved money when he was born as his college fund. He is collecting
$1,000,000 in 2021, so how much did his parents saved in 2003? (The money received
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 a yearly average rate of 5%)

A $415,524,89 B $416,224.24

C $41,552.40 D $415,524

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11.Carlos received a $25,000 pesos check as his graduation gift. He decides to save it for
retirement, and a friend tells him there is a 45 year government bond that will pay him a
guaranteed 4.5% per year. How much will Carlos collect when he retires
in 45 years?

A $171,500.24 B $181,205

C $201,450.50 D $200,000

12.If I am in 1994 and I need to know the purchasing power of my money in 1964 what
formula do I need?

General formula for quadratic Inflation ratio

A equations B

C Future value D Present value

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