What is the valuation of a stock whose current dividend is $1.00 per year if dividends are expected to grow at a constant rate of 10 percent forever and the investor’s required return is 11 percent?

If the Federal Reserve wants to expand reserves in the banking system, it will: A.  purchase government securities. B.  raise the discount rate. C.  sell government securities. D. use open market operations to sell short-term debt to banks with the goal of raising the Fed Funds rate.

What is true about Fannie Mae and Ginnie Mae pass through mortgage backed securities: A. Investors have prepayment risk which means many homeowners refinance when interest rates drop leaving MBS owners to reinvest  loan repayment proceeds at lower yields, B. The special purpose vehicle holds the mortgages pays the monthly mortgage payments made by borrowers to the MBS owners, minus any homeowner defaults. C. Mortgage originators typically sell mortgages they originate to investment banks who package them into MBS.

Which of the following is/are true: A. The Federal Reserve performs bank examinations as part of its mandate. B. Financial Stability is outside the mandate of the Federal Reserve and instead is the sole responsibility of the US Treasury. C. The ECB’s location in Germany is due to Germany’s strong aversion to inflation. D. The Federal Reserve was established to regulate the money supply, maintain financial stability, and serve as a lender of last resort.

Click on the following link to talk with your patient. https://www.blackbox.ai/agent/StevenJ78A2M I diagnosis the patient with ______________________.

3. In the “Heed the Market” exercise, students in our class offered higher salaries to men than women candidates in markets where men, on average, had higher external offers. Notably, in a market where men and women had similar external offers, students in our class offered similar salaries to men and women. Does this salary gap reveal implicit bias (i.e., although people wouldn’t admit it, they unconsciously believe women should be offered less for the same job)? Does this salary gap reveal a stereotype threat (i.e., women candidates feel threatened during a salary negotiation and, hence, are less likely to ask for more)? What else could have caused the salary gap?

6. Does power corrupt? Using psychological theory and empirical findings, make the case for: Why power might corrupt. Why power might not corrupt.

7. People hold multiple goals (e.g., doing well in school, working out regularly, socializing). In addressing the motivational challenges caused by having multiple goals: Suggest one behavioral intervention that increases people’s motivation to address multiple goals of similar importance. Suggest one behavioral intervention to help people focus on high-priority goals while avoiding low-priority goals (or temptations).

2. When reviewing class notes (for any class, not just this one), you’ve noticed that some information captured your attention when it was initially presented, but later on, you completely forgot about it. In contrast, some information that you thought you “remembered” was never presented, at least not exactly as you remembered it. What kind of information tends to capture people’s attention when presented, but will be hard to remember? What kind of information will people misremember, i.e., they will think it was there even though it was never presented?

11. UChicago has recently opened a new master in management degree program. Assume UChicago sends the following letters to college graduates: “Dear [Name], You’ve already achieved so much in your career, investing countless hours and significant effort to reach your current level. By enrolling in our master in management program, you’ll be safeguarding all the hard work you’ve already put into your career. Enrolling in this program is a critical step to ensure that your previous investments continue to pay dividends. Don’t let your past achievements plateau. Sign up for the master in management program.” What is the name of the psychological effect underlying this influence tactic and how does it work?