A monetary system is a scheme by which money is provided to facilitate exchanging of goods and services, and a well-functioning monetary system paves the way for effective allocation of scarce capital resources through financial markets.

(a) All currency notes and coins together represent only a small fraction of the money in a modern economy. Most of the money is in fact created in the banking system. Explain with an example how money can be created within a banking system.

(b) The renminbi will eventually crowd out the Hong Kong dollar as the preferred currency in Hong Kong as the economies of the city and Mainland China become more integrated. Do you agree with this statement? Justify your answer.

Chief Executive Officers (CEOs) are paid more than $100 million per year. Leading entertainers and sports figures make more than $10 million per year. The average physician earns about $200,000 per year. Most professors earn $50,000-100,000 per year. Sanitation workers earn $40,000-50,000 per year.

How do you account for the relative compensation of these different professions?  Does it reflect their marginal revenue productivity?  Explain based on the theory of demand and supply in the finished goods and services markets or the product market and the marginal productivity theory of labor demand that you have studied this past week.

Imagine yourself starting your own business. Based on what you learned in an introduction to management course you are requested to answer in details the following questions:

1. Briefly clarify what the business is, where it will be located, what it

     will provide to the market in terms of goods or services.

2. What kind of managerial functions you will use to run your business

      and how?

3. Clarify how many levels of management you might need and why?

4. What are management skills do you think would be most important

      for your business managers to have? Why?

5. How might the following management theories/approaches be useful to your business: scientific management, behavior approach and systems approach?

Three Steps to Cross-Cultural Dialogue

With “a global mindset by which we try to see things through the eyes of others and add their knowledge to our personal repertories” (Chen & Starosta, 2000, p. 1), we can perhaps take three steps to cross-cultural dialogue. The first step is to understand the mental layer of our own culture and its impact on the behavioral and material layers. The second step is to under- stand the mental layer of other cultures and its impact on the behavioral and material layers. The third step is to listen to others’ perspectives on our culture and share our perspectives on other cultures in order to reflect on what it means to be human in both local and global contexts and how humans should relate to one another, nature, and the spirits. In this step, we must engage in intercultural dialogue with Asante’s (2006) spirit of mutual respect and learning: “As creators of our own societies, we have valuable experiences to share, not to impose, which might be examined and adapted in a spirit of sharing and dialogue. This is the real meaning of intercultural interaction” (p. 154). Tu (2008) echoes Asante’s position by saying that “the celebration of cultural diversity, without falling into the trap of pernicious relativism, is profoundly meaningful for global stewardship” (p. 331).

Centricity in the first step of cross-cultural dialogue is the beginning and basis of equality and mutuality in intercultural communication (Miike, 2008a). It prevents our interactions with people from different countries and cultures from becoming a mere imposition– imitation encounter. This point should be well taken, especially by non-Westerners who wish to have sincere and serious conversations about intercultural cooperation and collaboration with Westerners on an equal footing. As Asante (2009) elucidates, centricity urges us, first and foremost, to inquire about our own identities, cultures, and histories as a way of contributing to the grand flow of the entire humanity without being imitators who blindly follow others. Paradoxically, in this soul-searching process, we may discover that the development of our own culture is, in fact, indebted to other cultures, and that the nature of human civilization is truly multicultural and synergic. In any case, imitation is not intercultural (Miike, 2008a).

Describe and discuss the three steps to cross-cultural dialogue.

Granger Corporation had $184,000 in sales on account last year. The beginning accounts receivable balance was $14,000 and the ending accounts receivable balance was $23,000. The corporation's average collection period was closest to: (Round your intermediate calculations to 2 decimal places.) Garrison 16e Rechecks 2017-10-04

Multiple Choice

27.8 days

45.6 days

9.9 days

36.7 days

2. Data from Fontecchio Corporation's most recent balance sheet appear below: Cash $ 40,000 Marketable securities $ 42,000 Accounts receivable $ 113,840 Short-term notes receivable $ 0 Inventory $ 79,000 Prepaid expenses $ 35,000 Current liabilities $ 272,000 The corporation's acid-test ratio is closest to:

Multiple Choice

0.57

0.15

0.72

0.30

3. Jester Corporation's most recent income statement appears below: Income Statement Sales (all on account) $ 130,000 Cost of goods sold 60,000 Gross margin 70,000 Selling and administrative expense 28,000 Net operating income 42,000 Interest expense 10,000 Net income before taxes 32,000 Income taxes (30%) 9,600 Net income $ 22,400 The beginning balance of total assets was $140,000 and the ending balance was $137,400. The return on total assets is closest to:

Multiple Choice

16.1%

30.3%

23.1%

21.2%

4. Irawaddy Company, a retailer, had cost of goods sold of $245,000 last year. The beginning inventory balance was $25,000 and the ending inventory balance was $24,000. The company's average sale period was closest to:

Multiple Choice

2.68 days

36.50 days

0.03 days

10.00 days

Explanation not needed​​​

1. The U.S. tax burden is:

1. About the same as most European countries.
2. Higher than most European countries.
3. Lower than most European countries.

1. Higher than all European countries.

2. when negative externalities are present in a market

1. private costs will be greater than social costs.
2. Social costs will be greater than private costs.
3. Only government regulation will solve the problem.
4. The market will not be able to reach any equilibrium.

3. In 2009, which category represented the largest source of receipts for the U.S. federal government?

1. Medicare.
2. Social security.
3. Individual income taxes.
4. Corporate income taxes.

4. The U.S. federal government collects taxes in a number of ways. Rank the following sources of revenue from the largest to the smallest

1. corporate income taxes, individual income taxes, social insurance taxes
2. social insurance taxes, individual income taxes, corporate income taxes
3. individual income taxes, corporate income taxes, social insurance taxes
4. individual income taxes, social insurance taxes, corporate income taxes.

5. A payroll tax is a tax on

1. The wages that a firm pays its workers.
2. Earned and unearned income.
3. Specific goods like gasoline and cigarettes.
4. Corporate profits.

6. the total fixed cost curve:

1. varies with the quantity of inputs used.

2. Decreases with output.
3. Increases with output.
4. Remains constant regardless of output.

Coronado Ranch & Farm is a distributor of ranch and farm equipment. Its products include small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company Internet site. However, given some of its specialty products, select farm implement stores carry Coronado’s products. Pricing and cost information on three of Coronado’s most popular products are as follows.

On January 1, 2020, Coronado sells augers to Mills Farm & Fleet for $41,280. Mills signs a six-month note at an annual interest rate of 12%. Coronado allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Coronado estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Coronado’s costs to recover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entries for Coronado on January 1, 2020.

(To Record Cost of Goods Sold)

An investor currently owns a portfolio of stocks and expects that the stock market will be down next quarter. How does the investor minimize the risk of potential capital loss without selling the portfolio?