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ch 1

accounting equation (ch 1):

the balance sheet shows the relationship between assets,liabilities,& stockholder’s equity @ a particular date.in equation form,assets = liabilities + stockholder’s equity.this is referred 2 as the basic accounting equation.

financial statements (ch 1) format/content (which accounts belong on each financial statement):

4 types of financial statements:

income statement:

summarizes all revenue & expenses 4 period (month,quarter,or year).if revenues exceed expenses,

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session 3. Futures

Futures and forwards (II)
The no-arbitrage principle. Consider a forward contract that obliges us to hand over an amount K at time T to receive the underlying asset. Today’s date is t and the price of the asset is currently S(t), this is the spot price, the amount for which we could get immediate delivery of the asset.
When we get to maturity, we will hand over the amount K and receive the asset, whose worth is S(T), and we cannot know this until time T.
Enter into the forward contract. This costs
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Brain storm: 1.Education in values. 2.Importance of education. 3.Educate through new technologies. 4.How education has changed

Outline: INTRO: we must strive every day to achieve a better society, and education is the key to changeP1: It is necessary to see education as a motivation to be more, instead of a motivation to have moreP2: four fundamental learnings of education.P3: training children for life in society. Conclussion: It is essential to be an inspiration to your students in every way.

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Government as a producer:
Essential goods and services 
Merit goods
Public goods
Control monopolies
*Government as an employer:
Unemployment rate=(number of unemployed%labour force)x100
Full enployement: situation were most people have a job but there are enough people out of work to prevent wages from starting to rise at an increasing rate
people are happier, but at the same time there must be unemployed so wages don’trise a lot 
Dealing with unemployment:
Temporary: publicise job vacancies
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Finance for development

  • Financial system and economic devp: fin system: demand for fin services comes from activities of nonfin firms(real sector), Monetary policy in dev: regulate economic activity and inflation,
  • ↑ supply $ -> ↑ loanable funds -> more investments + ↓ i/r
  • Why dev different? They have highly organized, economically interdependent and efficient functioning(spatially fragmented) money and credit markets. Consistency&uniformity in i/r across different sectors®ions
  • Constrained by the openess
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Fidelity Guarantee Insurance: Protects a business against financial losses, it might have as a result of dishonest or fraudulent activities by an employee.  Public Liability Insurance: Protects a business if a member of the public is injured (or their property is damaged) due to negligence while on the premises or as a result of the business’s activities. e.g. protects the business against a claim for  damages  from  a  consumer  who  falls  and  is  injured  on  the  business premises.
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