BU111 Lecture Notes - Lecture 9: Risk Premium, Capital Gain, Bearer Bond
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BU111 Full Course Notes
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Pest: connection: provide an example of a social factor that might affect a political factor and explain the connection (3 marks min) Provide social factor, talk about political factor affected, how are they connected. Social element would be attitudes and values toward global warming. Values and attitudes towards global warming have caused us to feel negatively about it. As a result, we have seen legislation restricting the amount of pollution a factory can emit. Politicians cater to the demand of the population and because our values have changed, it causes laws to be changed around it. Implication: if teleportation technology becomes a reality what industries will be affected and how: application: the government has decided to increase taxes on mobile telephones. Interest rates: employment rates, exchange rates, balance of trade, productivity. Why: affect economic growth (measures: aggregate output, gdp, gnp), economic stability, employment. Underwrite a(cid:374)d take spread a(cid:374)d risk o (cid:858)(cid:271)est effort(cid:859) o(cid:374) commission.
