A. What is meant by “time inconsistency of discretionary
policies” ? What is the problem with it? Give an example of time
inconsistency.
B. What is moral hazard? How do financial
institutions deal with moral hazard? (2 marks)
3. What is meant by the “time inconsistency” of economic policy?
Why might policymakers be tempted to renege on an announcement made
earlier? How might this have applied to the bailouts and other
programs proposed and implemented in response to the financial
crisis and Great Recession?
* Refer Macroeconomics by Gregory Mankiw , 10th edition; Please
explain the complete answer in a detailed way
1. Explain what is meant by- external
competitiveness, internal consistency, and individual
considerations.
2. Explain how you feel about each of the three
concepts. Are they important or unimportant in the establishment
and/or maintenance of good government. Why?
-What is GAAP and who develops GAAP?
-What is financial consistency and how does it apply to
Inventory?
-Define Materiality and is explain whether the materiality for a
$20 million revenue company would be the same for a $2 million
revenue company?
-What is the Sarbanes-Oxley Act of 2002 and how has it affected
accounting
-What is an Annual Report and who is required to file with the
SEC?