Hw Buisness

1. The U.S. financial system is composed of: (1) policy makers, (2) a monetary system, (3) financial institutions, and (4) financial markets. Indicate which of these components is associated with each of the following roles:

(1) Policy makers- C) pass laws and set fiscal and monetary policies,

(2) A monetary system- B) create and transfer money

(3) Financial institutions- A) accumulate and lend/invest savings

(4) Financial Markets- D) market and facilitate transfer of financial assets

2. Financial markets may be categorized as: (1) debt securities markets, (2) equity securities markets, (3) derivative securities markets, and (4) foreign exchange markets. Indicate in which of these markets the following securities trade:

(1) Debt securities markets- B) corporate bonds

(2) Equity securities markets- C) corporate stocks

(3) Derivative securities markets- A) residential mortgage

(4) Foreign exchange markets- D) currencies

3. In business, ethical dilemmas or situations occur frequently. Laws and regulations exist to define what unethical behavior is. However, the practicing of high-quality ethical behavior often goes beyond just meeting laws and regulations. Indicate how you would respond to the following situations. a. Your boss has just told you that tomorrow the Federal Drug Administration will announce its approval of your firm’s marketing of a new breakthrough drug. As a result of this information, you are considering purchasing shares of stock in your firm this afternoon. What would you do? b. In the past, your firm has been in compliance with regulatory standards relating to product safety. However, you have heard through the company grapevine that recently some of your firm’s products have failed resulting in injuries to customers. You are considering quitting your job due to personal moral concerns. What would you do?

A) I would most likely purchase share of stock in the firm because of how the Federal Drug Administration is going to approve marketing...