Current Events
Name one of the three 21st century recessions
The COVID-19 Crash of 2020
The Great Recession of 2008
The Dotcom Bubble of 2001
What are liabilities?
Something that you/a company owes
What does inflation cause?
It creates a general, sustained upward movement of prices for goods and services in an economy.
What is tax for?
Goes to the government to fund projects
True/False: Having all your investments in one stock is riskier than having all your money in one mutual fund.
True
Why do young Americans struggle in achieving the American Dream?
1. Boomers controlling legal procedures (legally crippling younger generations)
2. Housing issue (houses are more expensive, 30 year loans, etc)
What is GDP?
Gross Domestic Product
Why does inflation occur?
1. Demand-pull inflation
2. Cost-push inflation
3. Built-in inflation
4. Quantity theory inflation
What was the peak for marginal tax?
94% during 1945
If you invest $10,000 with a 10% return rate, how long will it take to compound to $175,000?
Roughly 30 years
How much did S&P 500 Index drop in 2022?
-19.57% return rate for 2022.
What is CPI?
Consumer Price Index
What are measures that control inflation?
1. Monetary measures
2. Fiscal measures
What is California's tax rate?
7.5% average, 10.5% in the Bay Area
How much is the average person in debt?
Roughly $100,000
What was the expected inflation rate for 2022?
Economists estimate a 7.3% rise in inflation for 2022
What is volatility?
It represents the standard deviation of a market; how big of a swing around average prices. More volatility = more risk
What is the biggest category in the CPI?
Shelter; accounts for roughly 32.39% of the entire index
How much does California get in tax revenue?
Roughly 248 billion dollars
How many people in the US are financially literate?
57%
How does the government ordering quantitative tightening in 2022 help combat inflation?
It stops the economy from growing at an uncontrollable rate, reduces money floating in the economy, and increases interest rates.
What is quantitative easing?
Policy that involves a central bank buying assets in the open market
What phenomenon occurs as a result of reducing aggregate supply?
Stagflation; prices rising but economy is actually receding
What is the standard deduction for single taxpayers in 2022?
$12,950. Basically a fixed amount that reduces total income subject to tax
What percentage of people can no longer afford student loan payments?
61%