Introduction to Finance

 1. 
(LO 7.1)
What is capital formation?
 2. 
(LO 7.1)
Describe the major components of the gross domestic 
product.
 3. 
(LO 7.1)
Identify the major components of net saving and 
describe their relative contributions in recent years.
 4. 
(LO 7.2)
Identify the various sources of revenues in the federal 
budget.
 5. 
(LO 7.2)
Identify the major expense categories in the federal budget.
 6. 
(LO 7.2)
Describe whether the federal government has been 
operating with surplus or defi cit budgets in recent years. 
 7. 
(LO 7.3)
Briefl y describe the historical role of savings in the 
United States.
 8. 
(LO 7.3)
Compare savings surplus and savings defi cit units. 
Indicate which economic units are generally of one type or the other.
 9. 
(LO 7.3)
Defi ne 
personal saving.
 10. 
(LO 7.3)
Also, diff erentiate between voluntary and contractual 
savings.
 11. 
(LO 7.3)
Describe the recent levels of savings rates in the United 
States.
 12. 
(LO 7.3)
How and why do corporations save?
 13. 
(LO 7.4)
Describe the principal factors that infl uence the level of 
savings by individuals.
 14. 
(LO 7.4)
How do economic cycle movements aff ect the media or 
types of savings by businesses?
 15. 
(LO 7.4)
What are the life cycle stages of individuals? 
 16. 
(LO 7.4)
How does each life cycle stage relate to the amount and 
type of individual savings? 
 17. 
(LO 7.4)
What are the life cycle stages of corporations and other 
business fi rms?