1. Many emerging market economies including China face the problem of high debt levels for the corporate sector, and deleveraging has become an important goal. What problems will be caused by 'a high leverage ratio for corporations and for the economy?
2. A couple wants to retire with $1 million in their 401[K] in 30 years. They decide to put invest $12,000 at the begining of each year, starting today, in the 401(K) and can earn 6% on all investments. Will they reach their goal?
No; they will be about $640,000 short.
No; they will be about $51,302 short.
Yes; they will be about $5,620 over.
Yes; they will be about $12,000 over.