1: Financial Concepts Your niece just started her college career with a major in economics. She is curious as to the interrelationship between the success of an economy and the financial markets, concepts, and financial institutions. Accordingly, she has developed a list of questions addressing these issues and has asked that you explain the ideas. What are the financial markets and what purposes do they serve? What are financial intermediaries? How do these intermediaries function in the economy? What is a federal government budget deficit? What is the national debt? How does a budget deficit affect the economy? She is also curious about the time value of money concepts. Specifically, she has the following questions about these concepts: Why are consumers considered to be risk averse? What methods could used to deal with risk? It has been said that a dollar received today is worth more than a dollar received tomorrow. What does this mean and what is the significance to the economy? What is the difference between the present value of a future sum of money and the future value of a present sum of money? What is the significance of these concepts to economics? If you deposited $1,000 in an account paying 6% interest compounded annually, how long would it take to double? Deliverables: Submit an 3-6 page paper in Microsoft Word format, addressing the above-noted items. Create a Microsoft PowerPoint presentation of 5-10 slides that summarizes your findings in your report. Due Thursday,26th 18:00 .

1. 1: Financial Concepts
Your niece just started her college career with a major in
economics. She is curious as to the interrelationship between
the success of an economy and the financial markets, concepts,
and financial institutions. Accordingly, she has developed a list
of questions addressing these issues and has asked that you
explain the ideas.
What are the financial markets and what purposes do they
serve?
What are financial intermediaries? How do these intermediaries
function in the economy?
What is a federal government budget deficit? What is the
national debt? How does a budget deficit affect the economy?
She is also curious about the time value of money concepts.
Specifically, she has the following questions about these
concepts:
Why are consumers considered to be risk averse? What methods
could used to deal with risk?
It has been said that a dollar received today is worth more than
a dollar received tomorrow. What does this mean and what is
the significance to the economy?
What is the difference between the present value of a future sum
of money and the future value of a present sum of money? What
is the significance of these concepts to economics?
If you deposited $1,000 in an account paying 6% interest
compounded annually, how long would it take to double?
Deliverables:
Submit an 3-6 page paper in Microsoft Word format, addressing
the above-noted items.
Create a Microsoft PowerPoint presentation of 5-10 slides that
summarizes your findings in your report.
Due Thursday,26th 18:00