At an interest rate of 8.25% compounded annually, what is the present discounted value of $2,000 to be received 2 years from now?

Because S&Ls were FSLIC insured, they

a. were less encouraged to make risky investments b. were less likely to make questionable loans c. could not venture into speculative land deals d. were less inclined to be cautious about the quality of the loans they made e. were safer than with the FDIC

Moral hazard is best described as

a. an action by an individual that endangers others. b. an action that puts one's salvation at risk. c. the presence of insurance increasing risk taking behavior. d. vigilance by individuals to keep total insurance claims at a minimum to keep rates low.