(Answered) 1 you have just won 5000 in the lottery you go on a

Economics

1. You have just won $5000 in the lottery. You go on a shopping spree with $4000 and save $1000. What benefits or worries will influence your decision to hold the $1000 as cash or to invest it in an interest-earning bond?

2. Explain how a chartered bank creates money.

3. Explain two ways that the interest rate is the price of money.

4. Explain how interest rates and bond prices are related using an example. What characteristic of bonds causes this relationship?

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