1. In 1980 France had a GDP of $325 billion francs and a population of 11.78 million. In 1980 the exchange rate was 1 US dollar was equal to 1.67 francs. In 2010, France had a GDP of $435 billion euros and a population of 21.75 million. In 2010 0.8 euros was equal to 1 US Dollar. The GDP deflator was 51 in 1980 and 125 in 2010. By what percentage did France’s Real GDP per capita rise between 1980 and 2010 in U.S. dollars
2. Identify the most commonly cited measure of inflation in the United States and explain how it is calculated. Identify and briefly discuss the some of the problems that statisticians have paid considerable attention to in recent years (your answer needs to be thorough).
3. Describe the relationship between inflation levels in prices and inflation levels for prices, wages and interest rates with respect to their ability to affect people's economic status and business outcomes (again, here be thorough and explain what happens when wages, etc. does and does not keep up with inflation).
4. Explain the differences and similarities between the GDP deflator and the CPI. Be thorough in your answer and write in complete sentences.
5. What is Hyperinflation and what are some reasons it may occur and persist? What is deflation, when does deflation usually occur, and is deflation a good or bad thing? Give examples of when each scenario happened in history as well. Again, be thorough in your answer.

TRUE OR FALSE

Experiencing an unfamiliar culture can generate culture shock.?

Symbols refer to anything that carries meaning that is recognized by people who share a culture.?

Through the use of symbols, people make sense of their surroundings.?

Most people in the United States share the value that everyone should not only have equality of opportunity, but also equality in all aspects of social standing.?

Mores are norms that have great moral significance.?

Values and norms help to define a society’s “ideal culture.”?

Most people participate in numerous subcultures without necessarily becoming very committed to any of them.?

The fact that hip-hop music and the DJ scene were invented in the low-income, African American neighborhoods of New York show that people of all social positions help create U.S. cultural patterns.?

The Harlow studies found that six months of social isolation was sufficient to permanently damage infant rhesus monkeys.?

What we know about the later lives of socially isolated children such as Isabell and Genie supports the findings of the Harlow’s research.?

The “id” in Freud’s work represents the human being’s basic drives, which are unconscious and demand immediate satisfaction.?

Mead’s concepts of the “I” and the “me” are close parallels of Freud’s concepts of the id and the superego.?

A community college is correctly considered to be a good example of a total institution?

ROULETTE is a casino game where a numbered wheel spins and a steel ball falls into a location marked by one particular colored number. In the United States there are 18 locations colored red, 18 locations colored black and 2 locations colored green. The red and black locations are numbered 1-36 and the green locations are labeled "0" and "00" as shown in the picture to the right. The wheel therefore has 38 locations in total. Note that the odd and even values are not evenly distributed within each color. For any particular wager a player makes, an expected profit can be calculated from: Expected profit = (Prob. of winning) x (winning payout amount) - wager

(b) To “let it ride” is to make a bet and if it wins to make the same bet with the entire payout amount. For example, if you bet $1 on black and win the casino gives you $2, you then "let it ride" by betting that $2 on black and if you win again the casino would give you $4. If the ball were to land on red or green on either spin of the wheel you would lose your wager and the final payout would be $0. What is the expected profit for betting $15 on black and if you win, "letting it ride" once? I.E., betting on black and if you win betting your winnings on black again? (keep in mind that if you lose the first bet you are done; round to closest penny)

Recent studies support the potential of a drug that is derived from the metal iridium to effectively treat cancer. This experimental drug, Drug ZL105, has not been tested for efficacy and toxicity. Imagine that you are the one responsible for approving or denying the use of this drug within the United States. Your job is to propose the testing that is needed for this drug to be determined as safe and effective for the treatment of cancer in humans. In your research and discussion, you should address the questions below.

1. What model(s) will you use for testing (i.e., animal, cell cultures, computer simulations)? Explain the choice of model, and provide support for the reliability of the model. Discuss the pros and cons of your choice.
2. In determining the safety and effectiveness of the drug, would it be necessary to test efficacy, toxicity, and lethality? Explain what each of these tests are for and whether or not one or more of the tests are necessary for your determination.
3. Provide your thoughts on what information you hope to gather from your tests and whether or not the same protocol should be used for various categories of products such as drugs, cosmetics, and herbal medicines.

Your case study assignment should be three to four pages in length, not including the title or reference page, and utilize at least three reliable references. Use APA style guidelines in writing this assignment, following APA rules for formatting, quoting, paraphrasing, citing, and referencing.

Assume that you recently graduated with a degree in finance and have just reported to work as an investment adviser at the brokerage firm of Smyth Barry & Co. Your first assignment is to explain the nature of the U.S. financial markets to Michelle Varga, a professional tennis player who recently came to the United States from Mexico. Varga is a highly ranked tennis player who expects to invest substantial amounts of money through Smyth Barry. She is very bright; therefore, she would like to understand in general terms what will happen to her money. After your consultation with Michelle, she asks to discuss these two scenarios with you:

a. While in the waiting room of your office, she overheard an analyst on a financial TV network say that a particular medical research company just received FDA approval for one of its products. On the basis of this “hot” information, Michelle wants to buy many shares of that company’s stock. Assuming the stock market is highly efficient, what advice would you give her?

b. She has read a number of newspaper articles about a huge IPO being carried out by a leading technology company. She wants to get as many shares in the IPO as possible and would even be willing to buy the shares in the open market immediately after the issue. What advice do you have for her?

2. [2] What are three causes of banks losing their cost advantages in acquiring funds in recent years?

3. [2] What are three reason banks have been losing income advantages on their assets in recent years

4. [1] Has the invention of the computer been a major factor behind the decline of the banking industry? Explain your answer.

5. [1] Why is loophole mining so prevalent in the banking industry in the United States?

6. [1] What role did the shadow banking system play in the decline of U.S. commercial banking?

7.[1] How do sweep accounts allow banks to avoid reserve requirements?

8. [1] How did commercial banks respond to their relative decline in traditional banking?

9. [2] Tyler Bank starts its first day of operations with $9 million in capital. A total of $130 million in checkable deposits is received. The bank makes a $25 million commercial loan and another $50 million in mortgages. Assume that required reserves are 8%. (a) What does the bank balance sheet look like? (b) How well capitalized is the bank? (c) Calculate the risk-weighted assets and risk-weighted capital ratio after the bank’s first day assuming reserves risk weights are 0%, mortgages rates are 50% and commercial loan rates are 100%.

1. The U.S. multinational manufacturing firm, Greenwich Industries, is debating whether to invest in a 2-year project in Japan. The project’s expected cash flows consist of an initial investment of ¥1 million with cash inflows of ¥ 400,000 in Year 1 and ¥ 800,000 in Year 2. The risk-adjusted cost of capital for this project is 11%. The current exchange rate is 115 yen per dollar.

   Risk-free interest rates in the United States and Japan are:

   U.S. government bond rates:

   •     1-year bond  2.4%

   •     2-year bond  3.0%

   Japan government bond rates:

   •     1-year bond  0.15%

   •     2-year bond  0.35%

   Which of the following answers is CORRECT about the expected future exchange rates 1 year from now and 2 years from now?

   		117.58 dollar per yen for one year rate and 121.15 dollar per yen for two year rate
   		0.008891 dollar per yen for one year rate and 0.009161 dollar per yen for two year rate
   		0.008891 yen per dollar for one year rate and 0.009161 yen per dollar for two year rate
   		117.58 yen per dollar for one year rate and 121.15 yen per dollar for two year rate

Refer to Greenwich Industries in question 19. If Greenwich undertakes the project, what is the net present value of the project in U.S. dollars?

1. Which of these transactions are part of the balance of payments?

2. Which one enters with a + sign?

3. Which one enters with a - sign?

4. Which of these are current account transactions?

5. Which of these are financial account transactions?

6. What is the current account balance?

7. What is the trade balance?

8. Suppose that the net international investment position at the beginning of 2017 is 0. What is the net international investment position at the end of 2017 (at accounting value)?

You plan to visit one of your friends living in Colorado, America in three months. You expect to incur the total cost of US$20,000 for lodging, meals, and transportation during your stay. As of today, the spot exchange rate is RM_____/ US$ and the three-month forward rate is RM_____/ US$ (please refer to Table 1 below for your given rates). You can buy the three-month call option on US$ with the exercise rate of RM4.3/ US$ for the premium of RM1 per US$. Assume that your expected future spot exchange rate is the same as the forward rate. The three-month interest rate is 3.2 percent per annum in Malaysia and 2 percent per annum in the United States.

1. Calculate your expected ringgit cost of buying US$20,000 if you choose to hedge via call option on US$.

2. Calculate the future ringgit cost of meeting this US$ obligation if you decide to hedge using a forward contract.

3. At what future spot exchange rate will you be indifferent between the forward and option market hedges?

4. Illustrate the future ringgit costs of meeting the US$ payable against the future spot exchange rate under both the options and forward market hedges.

TABLE1