Global Trade
Credit Card Industry
Fiscal System Overview
Financial Planning: Insurance Instruments & Retirement
Financial Planning: Investment Instruments & Retirement
100

These countries were pioneers in export-oriented economies by the 1960s.

The Asian Tigers (Hong Kong, Singapore, South Korea, Taiwan) 

100

When was the first credit card issued and what was its name?

The Diner's Club, in 1950
100

What is the taxpayer number (RFC) of Personas Físicas made up of?

Father's LN (2) + Mother's LN (1) + Name (1) + birthdate (YYMMDD) + 3 random digits

100

Mention at least 5 types of insurance policies.

Car, family, education, vacation, real estate, health, travel, life, business, robbery, etc.

100

What is inflation and how does it affect your purchasing power?

Inflation is the general increase in prices over time. It reduces your purchasing power because you can buy less with the same amount of money.

200

Explain the gravitational model of commerce and give one example of how it influences trade between countries.

The intensity of commerce between two countries is directly proportional to the size of their economies (GDP) and indirectly proportional to the distance between them. An example can be the US and Japan, which despite being far apart, trade a lot.

200

What are the 5 elements that make up your credit score using FICO's system?

Payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%)

200

Mention at least 4 different taxpayer regimes for corporate entities (PMs). When should these present their annual tax declarations?

SA, SA de CV, S de RL, SC, AC, SAS, SAPI. Corporate entities have until March of the following year to present their annual tax declarations.

200

In what cases would you most likely not need a life insurance?

If you have enough wealth to pass down to those who depend on you or nobody depends on you, then you probably don't need one! 

200

What are CETES and where can we check the value they're paying?

CETES (Certificados de la Tesorería de la Federación) are short-term government bonds issued by Mexico to raise funds; they are considered low-risk investments. You can check their current interest rates on Banxico’s website or via the app Cetesdirecto

300

What’s the difference between the European Union, the Schengen Area, the Eurozone, and Europe?

The EU is a Customs Union, as countries adopt common external barriers in terms of trade.

The Schengen Area is a Common Market, since there are common policies on product regulation, and free movement of goods, services, capital and labor.

The Eurozone is an Economic and Monetary Union, due to countries sharing a common currecny and central bank.

Europe is a contintent.


300

What are the 4 stages of payment processing? Define each step.

(1) Authorization: the process of a txn requesting approval

(2) Batching: the accumulation of the merchant's daily sales to send it to the acquiring bank

(3) Cleaning: the requests of payment from acquirers to schemes/switches to issuers 

(4) Funding: the acquiring bank depositing the funds in the merchant's account

300

Mention at least 3 taxpayer regimes for individual taxpayers (PFs) and give an example of a person that should be signed up for it. 

* Asalariados, employers for a private company or the government

* Servicios profesionales (honorarios), people who offer professional services, like doctors, architects and accountants

* Actividad empresarial / RIF / RESICO, people who own small businesses, like restaurants, coffee shops, corner stores, etc.

* Arrendamiento, someone renting a real estate

* Intereses / dividendos, investors who receive interests/dividends on the assets they possess

300

What triggered the 2020 reform to the pension system in Mexico? Mention at least two causes and two consequences from it.

Before the reform, the replacement rate was projected to be 26% on average, the contributions were too small, and women and people with inconsistent work historied were left behind.

After the reform, contributions increased from 6.5% to 15%, the minimum required weeks to pension were reduced to 750 with gradual increments, minimum pension adjusts with inflation, AFORE fees were capped, and AforeMovil app was launched.

300

What are the 3 pension modes (modalidades de retiro) in Mexico avaialbe for those under Ley 97 (AFOREs)? What do each of them mean?

* Renta vitalicia: a fixed monthly income paid out for life, managed by an insurance provider after retirement. 

* Retiro programado: the retiree withdraws from their savings gradually, managed by their AFORE, until the funds run out. 

* Pensión mínima garantizada: a government-provided safety-net pension given when a person meets the minimum requirements but lacks sufficient savings to fund other retirement options 

400

How does trade encourage specialization?

Countries focus on producing goods they are most efficient at and trade for others.

400

Describe the authorization process of a national transaction in an open-loop system including an aggregator. Give an example of each agent involved, for example: a Banorte card is used...

Cardholder <-> Aggregator <-> Acquiring bank <-> Switch <-> Issuing bank 

400

Name two advantages and two disadvantages of owning a business as a Persona Moral instead of as a Persona Física.

* Advantages: easier access to funding, separation from personal wealth, better distribution of responsibilities, and an overall better image towards clients/investors. 

* Disadvantages: more complex and costly to operate, the control of the company is diluted in shares, and a higher tax burden.

400

Which regulatory body oversees retirement funds in Mexico?

Comisión Nacional del Sistema de Ahorro para el Retiro (CONSAR)

400

What accounts make up a worker's total savings (these are available at the request of an account statement upon the AFORE the worker is affiliated to)?

Subcuenta de Retiro, Cesantía en Edad Avanzada y Vejez (RCV), Subcuenta de Aportaciones Voluntarias, Subcuenta de Vivienda

500

You are a policymaker. A domestic industry is struggling to compete with cheaper imported goods and the country is going through a harsh economic period. Name two protectionist tools you could use, define them and explain their impact.

Taxes, tarriffs and/or quotas. Tarriffs are a duty tax imposed by a country on goods imported from another country, although these can be perceived as an unfriendly act towards other countries. On the other hand, taxes are a compulsory state revenue that can be applied at the moment of purchase, and quotas limit the amount of a good or service that can be imported during a specific period of time. Both of these are perceived internationally as a protectionist measure, but not a threat, reason why they seem to be a more friendly way to restrict imports.

Price floors and price ceilings can't help much in this case.

Subsidies are not an option because of the country not being able to financially support companies.

500

What are the two switches in Mexico, why are they used instead of card schemes (also called card networks) and what banks are affiliated to each?

Prosa and eGlobal are the only two switches in Mexico, and they're used over Visa and Mastercard because they were already established before these became widespread. eGlobal was founded by Banamex and BBVA, apart from them, every other bank is connected to Prosa. 

500

Mention at least 3 situations in which it's mandatory to present an annual tax declaration as an individual taxpayer. What month is the latest in which individual taxpayers can present it?

I must present an annual tax declaration in April the latest if I:

  • Am part of Régimen de Asalariados and have two or more jobs, earn more than $400,000 per year or lost my job.
  • Am part of Régimen de Servicios Profesionales (Honorarios).
  • Rent real estate.
  • Receive payment(s) for a good that represent a significant amount in any method other than cash, like a car, jewelry, or house.
  • Receive "real" interests (discounting inflation) for more than $100,000 during the year as Fixed Income.
  • Obtain dividends, prizes, inheritance, charity, or income abroad.
500

Imagine you have a healthcare insurance policy with the following conditions: an insured sum of MXN $1'000,000, a deductible of MXN $30,000, and a coinsurance rate of 5%, capped at MXN $250,000. Unfortunately, you suffer an accident riding your bike, and the total medical costs amount to MXN $75,000. Based on these terms, how much will you have to pay out of pocket, and how much will your insurance cover?

You pay MXN $30,000 (deductible) + MXN $2,250 (coinsurance) = MXN $32,250. The insurance covers the rest ($42,750).

500

Explain the risk-return theory and give an example.

The risk-return theory says that the more risk you take with an investment, the higher the potential return — but also the chance of losing money. For example, stocks can offer high returns but are risky, while government bonds are safer but pay less.