Sunday, April 10, 2011

Honors Business Economics: 11 April 2011

Prayer
Beyond the Sound Bites (if time after Junior Quiz):

The Chapter 9 Section 3 Quiz for Juniors is today.

Clear your desk except for a pencil. Once everyone is quiet, and no talking during the Quiz, we can begin. Be sure to put your name on the Quiz and the Scantron. You may write on both the Quiz and the Scantron.

If you finish early, you may take out non-class materials; once everyone is finished, put away the non-class materials. Then, I will collect the Scantron first, and then I will collect the Quiz.

Be sure your name is on both the Scantron and the Quiz.

If your name is not on the Quiz it will not be returned.

The Quiz Prep Page is available for Wednesday's Quiz.

Consider the material found in Chapter 9 Section 3:

minimum tax, VAT (Value-Added Tax), flat tax, federal tax reform, business taxes, profits, tax burden, personal income rate, depreciation, investment tax credit, and, capital gains.

Cf. http://shanawiki.wikispaces.com/Honors+Business+Economics+Chapter+9+Section+4+Quiz+Prep+Page+Spring+2011


The Chapter 9 Section 1, Section 2, and Section 3 Quiz Make-ups are today; all Chapter 9 Quizzes and Test will be recorded for the 4th Quarter, not this Quarter.

Standard feature:

The electronic edition of the Philadelphia Inquirer is available. We have the Sunday edition, available on Mondays, in addition to the Tuesday through Friday editions on the other days.

Please follow the steps below:

URL: http://nie.philly.com
Click on the words "Access e-Inquirer" located on the gray toolbar underneath the green locker on the opening page.
Login:
Username: bshsinky@shanahan.org
Password: 10888

Chapter 11 Resources

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter11/chapter_overviews.html

Chapter 11: Financial Markets

Chapter 11 Section 1 Savings and the Financial System

7th

financial system

Figure 11.1 Overview of the Financial System

In-class assignment, with a partner, answer the following.

What do financial intermediaries do?
What do Households, businesses do?
What are the largest borrowers?
What can households borrow and invest in?

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p291.swf

How are people in the U.S. effected by the global financial system?

U.S. Economy and Financial System Bankrupt--What's next?, 6:38

In-class assignment, with a partner, answer the following.

What negative fundamentals have upset the U.S. financial system?
What is the first negative fundamental?
The second?
Third?
Fourth?
Five?
Six?
Seven?
What is it called when these markets collapse?
Eight?
Nine?


financial intermediary, p. 290-291

In-class assignment, with a partner, list examples of financial intermediaries.

List at least five financial intermediaries.

Define what financial intermediaries do.

nonbank financial institution

finance company

premium

pension

pension fund

In-class assignment, with a partner, answer the questions.

How are the socialist states of Europe bridging Europe's Pension Gap? 6:38

What can be done to forestall a pension gap in Europe (or any country adopting the socialist model of pensions)?
At what age do people expect to retire in Sweden?
What incentives are there to work longer?
What is different for blue-collar workers?
How can blue-collar workers continue to work?
What advantages are there for workers and society?


With life expectancy in Europe rising and birth rates falling, how much longer can states provide proper pensions for their senior citizens? With fewer people working to support retirees, governments are encouraging their citizens to postpone taking their pensions.

risk

In-class assignment, with a partner, answer the questions.

INVEST 101 - Risk versus Reward, 2:53

What should investors take into account?
What is the difference between an aggressive vs. a conservative investor?
What happens over time?
What happens if you take bigger risks?


In-class assignment, with a partner, answer the questions.

11.2 The Power of Compound Interest

What does the table show?
How can money grow with compound interest?
How much interest is earned after the first 10 years at 6 per cent? (p. 293)

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p293.swf

In-class assignment, with a partner, fill in the graphic.

11.1 Strategy
Complete the graphic organizer by describing how financial intermediaries channel money.

Reading Strategy

Saving and Economic Growth

Savers and Financial Assets

The Circular Flow of Finance

Financing Capital Formation

In-class assignment, with a partner, answer the question.

Reading Check

Summarizing

How does the financial system bring savers and borrowers together?

Nonbank Financial Intermediaries

Finance Companies

Life Insurance Companies

Pension Funds

In-class assignment, with a partner, answer the question.

Reading Check

Comparing and Contrasting

How do finance companies, life insurance companies, and pension funds channel savings to borrowers?

Basic Investment Considerations

Consistency

Simplicity

The Risk-Return Relationship

Investment Objectives

In-class assignment, with a partner, answer the question.

Reading Check

Identifying

If you were to invest your money, what would your objectives be?

11.1 Review

In-class assignment, with a partner, fill in the graphic.

Use the graphic organizer to describe the nonbank financial intermediaries.

Profiles in Economics Sallie Krawcheck

Keep Your Message Simple--with Mark Thompson, 2:06

In-class assignment, with a partner, answer the questions.

What is leadership?
What does communication involve?


Chapter 11 Section 2 Financial Assets and Their Markets

Section Preview

Content Vocabulary

bond

In-class assignment, with a partner, answer the following.

Personal Finance: How to Understand Bonds, 1:35

What exactly is a bond?
What has this to do with a company?
What is paid back?
What happens if the company goes bankrupt?


A bond is essentially a debt that funds a company, and that will be paid back with interest. Understand bonds and how it's different than equities with tips from a financial planner in this free video on personal finance and the stock market.

Expert: Chris Markowski
Contact: www.watchdogonwallstreet.com

coupon rate

maturity

par value

In-class assignment, with a partner, answer the following.

How do we calculate a par value of a bond?
What is its price?

Stocks & Investments: How to Calculate the Par Value of a Bond, 1:01


Calculating the par value of a bond is simple by looking at the initial purchase price of the bond, as the par value is generally the issues value as well as the ending value. Find the par value of a bond with financial advice from an experienced portfolio manager in this free video on investing.

Expert: Gregory Bramwell-Smith
Bio: Gregory Bramwell-Smith is the relationship and portfolio manager at Bramwell-Smith Associates.

current yield

In-class assignment, with a partner, answer the following.

Bond Investing: How to Find a Current Yield on a Bond, 1:49

How do we find a current yield on a bond?
What is the formula?
Where do you find this information?


The current yield on a bond is the yearly interest rate divided by the cost price of that bond. Find the current yield on a bond by calling the holder of the bond or checking the newspaper with help from a licensed financial planner in this free video on bonds and investing.

Expert: William Rae
Contact: www.hbwfl.com

junk bond

In-class assignment, with a partner, answer the following.

Stocks & Bonds: What Are Junk Bonds? 1:25

What is a junk bond?
What comes with high yield?
What may happen with junk bonds?


Junk bonds, or high yield bonds, are bonds that have low credit ratings, and therefore include an inherent risk. Be aware of a bond's credit rating before making an investment with help from a portfolio manager in this free video on personal finance and money management.

Expert: Gregory Bramwell-Smith
Bio: Gregory Bramwell-Smith is the relationship and portfolio manager at Bramwell-Smith Associates.

municipal bond

tax-exempt

savings bond

beneficiary

Treasury note

Treasury bond

Treasury bill

Individual Retirement Account (IRA)

capital market

money market

primary market

secondary market

11.2 Reading Strategy

In-class assignment, with a partner, fill in the graphic.

Use the graphic organizer to identify and describe at least four financial assets.

Issues in the News Want More Interest? Meet Bond, Junk Bond


In-class assignment, with a partner, fill in the graphic.

11.2 Review

Use the graphic organizer to identify the characteristics of financial assets.

11.3 Reading Strategy

In-class assignment, with a partner, fill in the graphic.

Use the graphic organizer to describe the different stock markets.

Figure 11.7 How Much Money Will You Have at Retirement?

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p308.swf

11.3 Review

In-class assignment, with a partner, fill in the graphic.

Use the graphic organizer to evaluate the risks and rewards of investments.

Figure 11.1 Overview of the Financial System

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p291.swf

Figure 11.2 The Power of Compound Interest

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p293.swf

Figure 11.7 How Much Money Will You Have at Retirement?

Chapter 10: Government Spending

Chapter 10 Resources

Chapter 10: Government Spending Multiple Choice Quiz

Chapter 10: Government Spending ePuzzles and Games Column

Chapter 10: Government Spending Vocabulary eFlashcards

Chapter 10: Government Spending In Motion The Federal Budget for Fiscal Year 2007

Chapter 10: Government Spending In Motion State and Local Expenditures

Chapters 8-11

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/

Chapter 9 Resources

Chapter 9: Sources of Government Revenue
Multiple Choice Quiz


Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter9/self-check_quizzes.html

Ch. 9 Crossword Puzzle

Chapter 9 Flashcards

Chapter 10 Resources

Self-Check Quiz, Crossword, Vocabulary

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter10/

Wisconsin Labor Protests - Noodles, 1:36


Spending, 6:25


The Rules of Good Sportsmanship in Games, Sports and in Life, 9:30

The public domain film, Good Sportsmanship (1950). How sportsmanship enriches daily living: a lesson for teens.
Producer: Coronet Instructional Films
Creative Commons license: Public Domain


Seinfeld Risk Management, 4:17

Cf. http://www.youtube.com/watch?v=laKprX-HP94

Finance Company Collector - A song protesting the current recession, 4:30


Josh Riddle and David Rufful are seniors at Dartmouth College.


Pension Tension Blues, 5:42

Lyrics: co-written by Susan Mangiero and Steven Zelin, Singing CPA.


The Quiz Prep Page is available for Wednesday.

Consider the material found in Chapter 9 Section 3:

minimum tax, VAT (Value-Added Tax), flat tax, federal tax reform, business taxes, profits, tax burden, personal income rate, depreciation, investment tax credit, and, capital gains.

Cf. http://shanawiki.wikispaces.com/Honors+Business+Economics+Chapter+9+Section+4+Quiz+Prep+Page+Spring+2011

Email (or hand in hard copy) to gmsmith@shanahan.org.

Monday HW
1. p. 286, #11-16.
Tuesday HW
1. p. 286, #17-19
Wednesday HW
1. p. 286, #20-22
Thursday HW
1. p. 286, #23-25
Friday HW
1. p. 286, #26