First
Measure of Knowledge
1. Describe
the current financial environment. How have brokers, traders, investment
bankers, and corporations adapted to current financial conditions?
2. Describe
and define the major USA financial markets. How has our system of capitalism
contributed to their development? Identify some major players in those markets.
3. Why are
accounting and financial statements so emphasized in finance? What is the purpose of this part of the
financial industry?
4. Compare
a couple of industries’ income statements and balance sheets. Point out some differences in the liabilities
of a bank and a mining firm, for example.
In which industries do inventory and inventory management matter
more? Discuss capital intensive versus
labor intensive industries. Where does
intellectual capital play its part?
5. Explain
the value of the DuPont equation and its summary ratio analysis.
6. What
does the yield curve depict? What
factors affect the yield curve?
7. Who are
the major players at various maturities on the curve? Illustrate several different issuers of
securities on a yield curve.
