SOURCES
CHAPTER-1
Q.12) How does a fall in the value of the pound sterling affect British consumers?
ANS- A fall in the value of pound sterling affects the cost of foreign goods.
Q.13) How does an increase in the value of the pound sterling affect Canadian businesses?
ANS-An increase in the value of pound sterling results in Canadian dollar buying more units of foreign currency, which in turn results in appreciation.
Q.14) Looking at Figure 1-8 (page 11), in what years would you have chosen to visit the Canadian Rockies rather than Washington, D.C.?
ANS-Looking at the figure 1-8, I would have choose the period from November 2007 to January 2009 to go to Canadian Rockies instead of Washington D.C.
CHAPTER-2
Q.10) if you are an employer, what kinds of moral hazard problems might you worry about with your employees?
ANS- Being an employer if I had any employee working hard but no incentives/bonus given I would worry that would make them less interested in working & make them feel irresponsible. For eg. a sales worker without any bonus/remuneration would not make any extra effort to sell the product.
Q.11) If there were no asymmetry in the information that a borrower and a lender had, could there still be a moral hazard problem?
ANS- With no asymmetry in the information between lender and borrower, there are still chances of moral hazard with the borrower taking the money with an intention of not returning it back, the lender may trust and give away the money but the borrower in the end could whisk or run away.
Q.14) How does risk sharing benefit both financial inter- mediaries and private investors?
ANS- Risk sharing benefits both the financial intermediaries private investors to minimize the risk of the project and in turn maximize profits.
Q.12) How does a fall in the value of the pound sterling affect British consumers?
ANS- A fall in the value of pound sterling affects the cost of foreign goods.
Q.13) How does an increase in the value of the pound sterling affect Canadian businesses?
ANS-An increase in the value of pound sterling results in Canadian dollar buying more units of foreign currency, which in turn results in appreciation.
Q.14) Looking at Figure 1-8 (page 11), in what years would you have chosen to visit the Canadian Rockies rather than Washington, D.C.?
ANS-Looking at the figure 1-8, I would have choose the period from November 2007 to January 2009 to go to Canadian Rockies instead of Washington D.C.
CHAPTER-2
Q.10) if you are an employer, what kinds of moral hazard problems might you worry about with your employees?
ANS- Being an employer if I had any employee working hard but no incentives/bonus given I would worry that would make them less interested in working & make them feel irresponsible. For eg. a sales worker without any bonus/remuneration would not make any extra effort to sell the product.
Q.11) If there were no asymmetry in the information that a borrower and a lender had, could there still be a moral hazard problem?
ANS- With no asymmetry in the information between lender and borrower, there are still chances of moral hazard with the borrower taking the money with an intention of not returning it back, the lender may trust and give away the money but the borrower in the end could whisk or run away.
Q.14) How does risk sharing benefit both financial inter- mediaries and private investors?
ANS- Risk sharing benefits both the financial intermediaries private investors to minimize the risk of the project and in turn maximize profits.