Value
Markets
Money
Banks
Stocks
100
What is the difference between a material and immaterial value? Give definitions and examples
Material is something you can sense (see, feel...) - clothing
Immaterial is something (idea or concept) that you care about but cannot physically sense - love, friendship, peace
100
Who are the two actors (people) in a market exchange?
Buyer and seller
100
The ancient lydians used gold for jewellry and armour. They decided to also use gold as coins for trade. Therefore, gold stored ____________
wealth or value
100
Name two purposes of a commercial bank
To store and lend money
100
What is the name of someone who owns a stock?
Stockholder or shareholder
200
Can something have 'value' without costing money? Give an example
Yes - a family heirloom, the great outdoors, spending time with friends
200
Why do sellers engage in market exchange?
To make money
To provide for their own needs and wants
To provide value for others (and therefore themselves)
200
The Vietnamese Dong has values that range from 1,000 VND to 500,000 VND. This means that the VND has many different _______________
Denominations
200
If you needed to access money right away, what bank account would you use?
Checking account from a commercial bank
200
Many people own stocks to earn money in the future. What is this called?
A financial asset
300
Name a way you can generate value through self-provisioning
Cooking for yourself, studying by yourself, going for a walk in nature,
300
What is one benefit of markets over other types of exchange?
It allows for people to specialize in making or providing things they are good at; that way, we do not need to try to satisfy all our needs and wants ourselves or from friends/families/neighbors
300
What is the purpose of this 'currency scanner'
To detect counterfeit money
300
When inflation is high, the central bank will do what to interest rates? Why
Increase because the cost of borrowing goes up
300
Disney offers a dividend to its shareholders, Tesla does not. What is a dividend? Why does Disney do this and Tesla does not?
A dividend is a partial payment of profits each quarter to shareholders. Disney is an old, mature company with consistent profits, so it can afford to pay dividends. They also use it to attract shareholders. Tesla is a younger growth company, looking to reinvest its profits into car design and manufacturing.
400
What is the difference between barter and gift exchange?
Barter is when you expect something of equal value in return at the same time; In gift exchange, you do not expect something in return (at least of equal value)
400
What are the three general categories of things sellers can provide in a market exchange?
Goods, services, and financial assets
400
In 2000, the country of Ecuador experienced a severe economic crisis. Its currency, the Ecuadorian sucre, lost all value. What are two options that Ecuador could have done to save its economy?
1. Replace the sucre with a reliable currency (ex: USD)
2. 'back' its currency with a valuable commodity (gold or silver)
400
How does a commercial bank make money?
Lending money at a higher interest rate than deposits; charging fees for foreign currency transactions
400
Nidec, the world’s largest motor parts manufacturer, has had to reduce its value by ¥1tn ($6.3bn) after it was revealed that it had lied in its financial statements. What do you think happened to its stock price? Why?
Its stock price fell because 1. the company was not doing as well as it reported, 2. the company is now not trusted as honest and reliable
https://www.ft.com/content/7922be35-978e-4110-8100-31774a3e823b?syn-25a6b1a6=1
500
After years of working as a banker, you decide to fulfill your dream of becoming an environmental activist, fighting to save the Amazon rainforest. What level of Maslow's Hierarchy of needs is this?
Self-actualization
500
How could market exchange help satisfy the 'esteem' tier of Maslow's Hierarchy of Needs
Buying prestige items like luxury handbags, sports cars, fancy clothes
500
Name the five features of effective money
Scarcity, Portability, Acceptability, Divisibility, Durability
500
How do governments raise money?
Through taxes and BONDS (like loans) from individuals, banks, and foreign governments
500
A new company called 'Trash Blast' offers trash removal services...to outer space. The company is looking to raise money by selling its stock to the public. What is this event called?
An IPO (Initial Public Offering)