QUESTIONS :

1. HOW CAN ONE TAKE OUT AN INSURANCE. LIST THE STEPS.

2. WHY DO WE CALL INSURANCE COMPANIES INSTITUTIONAL INVESTORS.

EXPLAIN.

3. LIST THE TYPES OF FINANCIAL INSTITUTIONS MENTIONED IN CLASS. WHAT

KINDS OF SERVICES DO THEY OFFER?

4. TALK ABOUT THE GLASS-STEAGAL ACT.

5. MICROFINANCE. WHAT IS IT? HOW DOES IT WORK?

Supplying small loans,savings and other financial services to the poor.

6. LIST AND EXPLAIN TYPES OF EXCHANGE RATES THAT HAVE BEEN IN USE IN
THE PAST OR IN THE PRESENT

-fixed - one dollar was worth 1/35 of an ounce of gold

-floating - exchange rates are determined by supply and demand

7. HOW DOES SPECULATION ON THE CURRENCY MARKET AFFECT INDUSTRY?

8. WHAT CAUSES DO INTERNAL/EXTERNAL THEORIES GIVE FOR THE

EXISTENCE OF BUSINESS CYCLES?

9. EXPLAIN THE MAIN IDEAS CONNECTED WITH CLASSICAL ECONOMIC

THEORY,KEYNESIANISM,AND MONETARISM.

10.HOW DID DEREGULATION IN THE 1980S LEAD TO THE SUBPRIME CRISIS?

11.THE 3 FINANCIAL STATEMENTS (WHAT THEY SHOW,WHAT IS THEIR

PURPOSE AND WHAT IS THE KEY EQUATION,IF THERE IS ONE)

-The profit and loss account - show the profit earned and losses made over
a period of time

-purpose : to calculate net profit and

summarize the profitability

of the company

Net profit = Revenue - Costs

-Balance Sheet -shows-what a company own and that is owe on a

particular day

- purpose : to show a "snapshot" of the firm's financial

position

- Assets= liabilities + owner's equity

 -Cash flow statement - shows:where the firm's funds come from and where
they go

- purpose : indicator of the firm's income

12.COMPARE THE ADVANTAGES AND DISADVANTAGES OF OWNING BONDS

OR STOCKS

13.COMPARE THE ADVANTAGES AND DISADVANTAGES OF ISSUING BONDS OR

STOCKS

14.HOW CAN CORPORATIONS FINANCE THEIR ACTIVITIES? (3)

-out of undistributed corporate profits

-borrow from financial institution

-issue common stocks and bonds

15.WHAT ARE THE RIGHTS OF A SHAREHOLDER? (4)

16.WHAT IS THE DIFFERNCE BETWEEN THE MARKET VALUE AND THE FACE
VALUE OF A BOND/STOCK?

17.WHAT FACTORS CAN INFLUENCE THE MARKET PRICE OD A BOND?

18.HOW DO CENTRAL BANKS USE BONDS TO REGULATE THE MONEY SUPPLY?

19.COMPANY GROWTH : INTERNAL/EXTERNAL. EXPLAIN,GIVE EXAMPLES.

-internally : organic growth

-externally : integration

20.TYPES OF INTEGRATION.

-horizontal

-vertical

-forward

-backward

21.WHAT IS AN LBO?

Leveraged buyouts - buying a company with borrowed money