FINANCE AND EQUITY EQUITY BY ESOM

• This is a quiz on Financial and Economics related concepts, terminologies and interesting facts. However, there are also a few general Business questions included.

• While there are questions about financial and economics concepts, all these question will have sufficient hints in them, so you can arrive at the answer from the question itself.

• Happy Quizzing!

RULES

1. FILL IN THE BLANKS• In macroeconomics, the _____ versus ______ model is an example of a simple

production–possibility frontier. It demonstrates the relationship between a nation's investment in defence and civilian goods. In this example, a nation has to choose between two options when spending its finite resources. It may buy either ____ (invest in defence/military) or ______ (invest in production of civilian goods), or a combination of both. This may be seen as an analogy for choices between defence and civilian spending in more complex economies.

• Perhaps the best known use of the phrase (in translation) was in Nazi Germany. In a speech on January 17, 1936, Minister of Propaganda Joseph Goebbels stated: "We can do without, ______, despite all our love of peace, not without ____. One cannot shoot with ______, but with ____." Referencing the same concept, sometime in the summer of the same year another Nazi official, Hermann Göring, announced in a speech: “____ will make us powerful; _____ will only make us fat."

SAFETY SLIDE

THE GUNS VERSUS BUTTER MODEL

2.• In economics, X occurs when a country experiences very high and usually

accelerating rates of inflation, rapidly eroding the real value of the local currency, and causing the population to minimize their holdings of local money.

• Due to X, Zimbabwe had resorted to printing currency notes with denominations of 5 million dollars and has now switched to the Chinese Yuan as its standard Currency.

• The picture(on the next slide) illustrates the phenomenon X, about which most of us have read in our history text books. What is X? And what is this picture illustrative of?

SAFETY SLIDE…

ANS: HYPERINFLATION. THE MAN IN THE PICTURE WAS TRYING TO BUY A LOAF OF

BREAD. ONE LOAF OF BREAD COST A WHEELBARROW WORTH OF CURRENCY NOTES

DUE TO HYPERINFLATION.

3. FIND X. • We’ve all heard of the term Glass ceiling used in management and by famous

economists to address and mitigate Gender Pay Gap. There is another phenomenon X whose examples include the following incidences:

• Kellyanne Conway became the first woman to manage a Republican presidential campaign in August, 2016, when she was appointed as Donald Trump's campaign manager, after a month of missteps by the Republican nominee and his subsequently declining poll numbers.

• In 2014, General Motors hired Mary Barra as CEO, during a period in which it announced a number of product recalls.

• Theresa May, became leader of the Conservative Party and Prime Minister of the United Kingdom in July 2016 shortly after a referendum result to leave the EU caused the pound to drop in value to levels not seen in 30+ years.

SAFETY SLIDE

GLASS CLIFF

• The glass cliff is a term that describes the phenomenon of women in leadership roles, such as executives in the corporate world and women political election candidates, being likelier than men to be put in leadership roles during periods of crisis or downturn, when the chance of failure is highest.

4)

• A ________ ______economy is a simple framework used to study some fundamental issues in economics. It assumes an economy with one consumer, one producer and two goods. The title " ________ ______ " is a reference to the novel of the same name authored by Daniel Defoe in 1719.

• The basic assumptions of the ________ ______ economy are as follows:[5]

• The island is cut off from the rest of the world (and hence cannot trade)• There is only a single economic agent (______ himself)• All commodities on the island have to be produced or found from existing

stocks

SAFETY SLIDE

ANSWER: ROBINSON CRUSOE ECONONMY

5)

• The term “_____ _______" was first applied to Japanese firms supported by Japanese banks during the period known as the "Lost Decade" after the collapse of the Japanese asset price bubble in c.1990. Japanese banks continued to support weak or failing firms. The retailer Daiei is an example of a large company that expanded greatly during the period leading to the 1990 crash, and under different circumstances would have been expected to have entered receivership or bankruptcy. The finance minister Takeo Hiranuma was reported as describing the 96,000 employee firm as being 'too big to fail‘

• ______ _______are indebted businesses that, although generating cash, after covering running costs, fixed costs (wages, rates, rent) they only have enough funds to service the interest on their loans, but not the debt itself. As such they generally depend on banks (creditors) for their continued existence, effectively putting them on never-ending life support.

SAFETY SLIDE

ZOMBIE COMPANY OR ZOMBIE ECONOMY WHICH IS PLAGUING THE CHINESE ECONOMTY

AT PRESENT

6)

• As Hillary Clinton asserted during the summer of 2015, "a quarter-century after passage of the Americans with Disabilities Act in 1990, it often remains difficult for persons with disabilities to gain access to meaningful and gainful employment". Many, become "99ers", as they continue to be left out of the workforce, and for those who are employed, many are in under-stimulating jobs that don't fully utilize their talents and abilities“

• The term 99er is used(in a rather derogatory manner at times) to refer to the unemployed section of the population.

• 99ers reportedly put a massive burden on the US Economy.• Why are they called 99ers?

ANSWER:

• 99ers is a colloquial term for unemployed people in the United States, mostly citizens, who have exhausted all of their unemployment benefits, including all unemployment extensions. As a result of the American Recovery and Reinvestment Act passed by Congress in February 2009, many unemployed people could receive up to 99 weeks of unemployment insurance benefits, hence the name "99ers"

7)• X is a two word term which refers to a company's net earnings, net income or earnings

per share (EPS). The reference to “______" describes the relative location of the net income figure on a company's income statement.

• Most companies aim to improve their Xs through two simultaneous methods: growing revenues (i.e., generate top-line growth) and increasing efficiency (or cutting costs).

• X is nowadays a very commonly used term by most people which means: the primary or most important consideration. Or the most important point.

• X is a very common term that we all have heard of. • X?

SAFETY SLIDE

ANSWER: BOTTOM LINE

8) PIC ON NEXT SLIDE. EXPLAIN WHAT IS BEING TALKED ABOUT HERE• The picture on the next slide illustrates something which is believed to have been the

cause of the following incidents:• 2015, a junior employee at Deutsche Bank whose superior was on vacation confused

gross and net amounts while processing a trade, causing a payment to a US hedge fund of $6bn, orders of magnitude higher than the correct amount. The bank reported the error to the British Financial Conduct Authority, the European Central Bank and the US Federal Reserve Bank, and retrieved the money on the following day

• In 2016, it was believed to have caused the British pound to drop 6% in just a few minutes to $1.1841, its lowest value for 31 years.

• a Japanese broker placed orders for more than US$600bn (£370bn) of stock in leading Japanese companies, including Nomura, Toyota Motors and Honda which was subsequently cancelled. If the order had been fulfilled it would have exceeded the value of the economy of Sweden.

ANSWER: FAT FINGER ERRORA fat-finger error is a keyboard input error in the financial markets such as the stock market or foreign exchange market whereby an order to buy or sell is placed of far greater size than intended, for the wrong stock or contract, at the wrong price, or with any number of other input errors.

VISUAL DIFFERENTIAL ROUND

HOW IT WORKS:

• Each slide consists of a cartoon/minimalist poster/picture depicting an Economic, Business , Finance or Politics related concept, term, etc.

• Think Creatively as the answers could be tongue-in-cheek depictions• Write down your answers for each question• Scoring: 10+(number of teams answering incorrectly)• There are no negatives.

1) WHAT’S BEEN BLANKED OUT?

2)

3)

4)

5)

6)

EXCHANGE SHEETS

• 1)

1)

2)

3) TRUMP/ MAKE AMERICA GREAT AGAIN

4) AUSTERITY MEASURES/ EXPENDITURE CUTS

5)

6)

LIST IT!

3 Lists

1)

• List all Brands of PepsiCo India• 2 points per answer and 5 points bonus for getting all correct.

2)

• List all the countries in the G7• 2 points for each correct answer and +6 for getting all of them correct

3)

• List all the present divisions of General Motors• +2 for each part and +10 for getting all of them right

EXCHANGE SHEETS!

PEPSICO INDIA• 1) Pepsi• 2)Kurkure• 3)Quaker Oats• 4)Cheetos• 5)Gatorade• 6)Uncle Chips• 7)Aquafina• 8)Duke’s• 9)Lehar• 10)Mountain Dew• 11)Slice• 12)Tropicana• 13)Lay’s• 14)7 up

G7

• Canada• France• Germany• Japan • GBR• Italy• USA

GM‘S DIVISIONS

• 1) Buick • 2)Chevrolet• 3)Cadillac• 4)GMC• 5)Hummer • 6)Opel• 7)Vauxhall

LONG CONNECT

1) +60/-50 WHAT IS BEING DISCUSSED HERE?• In Portugal, it is known as xaroco. In Malta, it is known as xlok. It sounds like

a word of Italian origin, however it is derived from Greek.• It arises from a warm, dry, tropical airmass that is pulled northward by low-

pressure cells moving eastward across the Mediterranean Sea, with the wind originating in the Arabian or Sahara deserts. The hotter, drier continental air mixes with the cooler, wetter air of the maritime cyclone, and the counter-clockwise circulation of the low propels the mixed air across the southern coasts of Europe.

SAFETY SLIDE

ANSWER: SCIROCCO

2) +45/-35

• In Greek, the word “X" describes an intense summer rain that lasts for a few minutes. In Croatian "burno" means "violently" and is commonly used to describe the weather. X X is a picturesque island resort.

• The wind takes two different traditional names depending on associated meteorological conditions: the "light X" is X in the presence of clear skies, whereas clouds gathering on the hilltops and moving towards the seaside with rain or snow characterize the "dark X"

• Cracking X will be a concrete clue to cracking the long connect.

SAFETY SLIDE

X-BORA

3)+30/-25

• The Portuguese recognized the importance of the _____ _____ . then the Volta do mar, meaning in Portuguese "turn of the sea" but also "return from the sea") in navigation in both the north and south Atlantic ocean as early as the 15th century

• The captain of a sailing ship seeks a course along which the winds can be expected to blow in the direction of travel. During the Age of Sail, the pattern of prevailing winds made various points of the globe easy or difficult to access, and therefore had a direct impact on European empire-building and thus on modern political geography.

• Two word term required: This two word term in German is a famous product of the company.

SAFETY SLIDE

ANSWER: TRADE WINDS/PASSAT WINDS

4)+20/-10

• The X Stream is typically 100 kilometres (62 mi) wide and 800 metres (2,600 ft) to 1,200 metres (3,900 ft) deep. The current velocity is fastest near the surface, with the maximum speed typically about 2.5 metres per second (5.6 mph)

• Some of the RMS Titanic's victims, whose bodies were buoyed by lifebelts but were never found by rescue or recovery ships sent to find them, are surmised to have been carried away in the X Stream.

• X is a 4 letter word. A slight modification of its spelling will give you another product of the company in the long connect.

SAFETY SLIDE

X-GULF STREAM

3)+10/0

• ___ streams are fast flowing, narrow, meandering air currents found in the atmosphere of some planets, including Earth. On Earth, the main ___ streams are located near the altitude of the tropopause and are westerly winds (flowing west to east). Their paths typically have a meandering shape.___ streams may start, stop, split into two or more parts, combine into one stream, or flow in various directions including opposite to the direction of the remainder of the ___. The strongest ___ streams are the polar ___, at 9–12 km above sea level, and the higher altitude and somewhat weaker subtropical ___at 10–16 km.

• It is ironic that this company names its products after types of winds in light of recent events.

SAFETY SLIDE

ANSWER: JET STREAM

LONG CONNECT:VOLKSWAGEN

Numerous sources suggest, that the name Passat derives from the German word for trade wind, reflecting the period in Volkswagen's history, when it named its vehicles from prominent winds and currents, eg. the Volkswagen Golf (after German for Gulf Stream), the Volkswagen Jetta (after the Jet stream), Volkswagen Bora (after bora), and Volkswagen Sirocco (after sirocco). A 2013 report of the former ad says, that dr. Carl Hahn - former chief Volkswagen of America and new WP Schmidt - former sales chief at Volkswagen for conclusive evidence suggests, that Volkswagen employed a naming theme with its front-drive and water-cooled vehiclesThe irony is that Volkswagen was embroiled in the emissions scandal