Financial Literacy
What chapter of the U.S. Bankruptcy Code is most commonly used by individuals to discharge debts?
Answer: Chapter 7
What is the difference between a tort and a contract?
Tort = civil wrong; Contract = agreement enforceable by law
Which major U.S. bank recently faced a sudden collapse in 2023?
Silicon Valley Bank (SVB)
Give an example of a variable expense in a monthly budget.
Answer: Groceries, utilities, entertainment (not subscriptions), transportation
What is “consideration” in contract law?
Something of value exchanged between parties to form a contract
The Federal Reserve recently announced they cut interest rates by how many basis points?
25 basis points (to a target range of 4.00% - 4. 25%).
Give an example of a secured loan and an unsecured loan.
Answer: Secured = mortgage or car loan; Unsecured = credit card or personal loan
What is the “reasonable person” standard in tort law?
Standard used to determine negligence based on how a reasonable person would act.
Which major bank is on track to land the largest investment banking fee ever?
Bank of America. On track to land a $130 million fee for a major railroad merger.
Give an example of an asset that could protect against inflation.
Real estate, stocks, precious metals, Treasury Inflation-Protected Securities (TIPS)
the fully functional form of a living being that can thrive in a particular environment.
what is homeostasis?
This company has the greatest market cap for nearly all of 2025?
Nvidia
Give me 2 tax haven jurisdictions. (one cannot be Cayman Islands).
Bermuda; Luxembourg; Switzerland; Singapore; Netherlands; Isle of Man
A software company, TechNova, enters into a written agreement to deliver a custom software platform to a client, FinCorp, by December 1. TechNova knows it cannot meet the deadline due to staffing shortages but assures FinCorp that the project will be delivered on time. On December 1, the software is incomplete, causing FinCorp to lose a major business opportunity.
Under which contract law principle could FinCorp potentially recover damages?
Potentially anticipatory breach if TechNova’s prior assurances are treated as a clear indication they would not perform
This company is undergoing a $1 billion internal restructuring which involves closing underperforming stores in North America and laying off 900 non-retail corporate employees, effective by the end of 2025.
Starbucks