Questions from Business Foundation

Q: Describe the four major types of financial markets. (1

Describe the four major types of financial markets. (1) What is the difference between the primary market and the secondary market? (2) Why do individual investors participate in the stock and bond ma...

Q: Describe four major steps required to become an investor. (

Describe four major steps required to become an investor. (1) If you want to buy a particular stock but are worried that demand from investors could push the price to an unreasonably high level before...

Q: Identify the major ways of measuring economic activity. (1

Identify the major ways of measuring economic activity. (1) Why would anyone bother to monitor lagging indicators? (2) Why is GDP considered a more accurate measure of a country’s economic health than...

Q: List the four financial functions of money and define two key measures

List the four financial functions of money and define two key measures of the money supply. (1) What might happen if people lose trust in their country’s currency? (2) Why couldn’t you buy your grocer...

Q: Explain the major functions of the Federal Reserve System, and identify

Explain the major functions of the Federal Reserve System, and identify other key federal financial institutions. (1) Why does the Fed want to avoid an “overheating” economy? (2) Why is the Fed’s disc...

Q: Distinguish investment banks from commercial banks, and identify the three major

Distinguish investment banks from commercial banks, and identify the three major types of investment banks. (1) Could efforts to avoid conflicts of interest lead an investment bank to provide poor s...

Q: Identify the major types of commercial banks, and outline the impact

Identify the major types of commercial banks, and outline the impact of banking deregulation over the past three decades. (1) Why might credit unions want to promote themselves as not being banks in...

Q: Identify the two major sets of economic forces that triggered the meltdown

Identify the two major sets of economic forces that triggered the meltdown of 2008 and sent the economy into a global recession. (1) Can financial bubbles be avoided? After all, they involve lots of h...

Q: Discuss what it means to practice good business ethics, and highlight

Discuss what it means to practice good business ethics, and highlight three factors that influence ethical decision making. (1) If you go to work tomorrow morning and your boss asks you to do somethin...

Q: Identify four fundamental consumer rights and the responsibility of business to respect

Identify four fundamental consumer rights and the responsibility of business to respect them. Is there a point at which responsibility for product safety shifts from the seller to the buyer? Explain y...