Finance and Economics Quiz Finals held on the 28th of October 2016 for the Economics Society of Manipal by Sandeep Rao, Abhishek Batni and Rijul Kapoor

1. FINANCE AND EQUITY
EQUITY BY ESOM
• This is a quiz on Financial and Economics related concepts,
terminologies and interesting facts. However, there are also a few
general Business questions included.
• While there are questions about financial and economics concepts,
all these question will have sufficient hints in them, so you can
arrive at the answer from the question itself.
• Happy Quizzing!

2. RULES

3. 1. FILL IN THE BLANKS
• In macroeconomics, the _____ versus ______ model is an example of a simple
production–possibility frontier. It demonstrates the relationship between a nation's
investment in defence and civilian goods. In this example, a nation has to choose
between two options when spending its finite resources. It may buy either ____ (invest
in defence/military) or ______ (invest in production of civilian goods), or a combination
of both. This may be seen as an analogy for choices between defence and civilian
spending in more complex economies.
• Perhaps the best known use of the phrase (in translation) was in Nazi Germany. In a
speech on January 17, 1936, Minister of Propaganda Joseph Goebbels stated: "We can
do without, ______, despite all our love of peace, not without ____. One cannot shoot
with ______, but with ____." Referencing the same concept, sometime in the summer of
the same year another Nazi official, Hermann Göring, announced in a speech: “____
will make us powerful; _____ will only make us fat."

4. SAFETY SLIDE

5. THE GUNS VERSUS BUTTER MODEL

6. 2.
• In economics, X occurs when a country experiences very high and usually
accelerating rates of inflation, rapidly eroding the real value of the local currency,
and causing the population to minimize their holdings of local money.
• Due to X, Zimbabwe had resorted to printing currency notes with denominations
of 5 million dollars and has now switched to the Chinese Yuan as its standard
Currency.
• The picture(on the next slide) illustrates the phenomenon X, about which most of
us have read in our history text books. What is X? And what is this picture
illustrative of?

8. SAFETY SLIDE…

9. ANS: HYPERINFLATION. THE MAN IN THE
PICTURE WAS TRYING TO BUY A LOAF OF
BREAD. ONE LOAF OF BREAD COST A
WHEELBARROW WORTH OF CURRENCY NOTES
DUE TO HYPERINFLATION.

10. 3. FIND X.
• We’ve all heard of the term Glass ceiling used in management and by famous
economists to address and mitigate Gender Pay Gap. There is another phenomenon
X whose examples include the following incidences:
• Kellyanne Conway became the first woman to manage a Republican presidential
campaign in August, 2016, when she was appointed as Donald Trump's campaign
manager, after a month of missteps by the Republican nominee and his
subsequently declining poll numbers.
• In 2014, General Motors hired Mary Barra as CEO, during a period in which it
announced a number of product recalls.
• Theresa May, became leader of the Conservative Party and Prime Minister of the
United Kingdom in July 2016 shortly after a referendum result to leave the EU
caused the pound to drop in value to levels not seen in 30+ years.

11. SAFETY SLIDE

12. GLASS CLIFF
• The glass cliff is a term that describes the phenomenon of women in leadership
roles, such as executives in the corporate world and women political election
candidates, being likelier than men to be put in leadership roles during periods of
crisis or downturn, when the chance of failure is highest.

13. 4)
• A ________ ______economy is a simple framework used to study some fundamental
issues in economics. It assumes an economy with one consumer, one producer and
two goods. The title " ________ ______ " is a reference to the novel of the same name
authored by Daniel Defoe in 1719.
• The basic assumptions of the ________ ______ economy are as follows:[5]
• The island is cut off from the rest of the world (and hence cannot trade)
• There is only a single economic agent (______ himself)
• All commodities on the island have to be produced or found from existing stocks

15. SAFETY SLIDE

16. ANSWER: ROBINSON CRUSOE ECONONMY

17. 5)
• The term “_____ _______" was first applied to Japanese firms supported by Japanese
banks during the period known as the "Lost Decade" after the collapse of the Japanese
asset price bubble in c.1990. Japanese banks continued to support weak or failing firms.
The retailer Daiei is an example of a large company that expanded greatly during the
period leading to the 1990 crash, and under different circumstances would have been
expected to have entered receivership or bankruptcy. The finance minister Takeo
Hiranuma was reported as describing the 96,000 employee firm as being 'too big to fail‘
• ______ _______are indebted businesses that, although generating cash, after covering
running costs, fixed costs (wages, rates, rent) they only have enough funds to service the
interest on their loans, but not the debt itself. As such they generally depend on banks
(creditors) for their continued existence, effectively putting them on never-ending life
support.

18. SAFETY SLIDE

19. ZOMBIE COMPANY OR ZOMBIE ECONOMY
WHICH IS PLAGUING THE CHINESE ECONOMTY
AT PRESENT

20. 6)
• As Hillary Clinton asserted during the summer of 2015, "a quarter-century after
passage of the Americans with Disabilities Act in 1990, it often remains difficult for
persons with disabilities to gain access to meaningful and gainful employment".
Many, become "99ers", as they continue to be left out of the workforce, and for those
who are employed, many are in under-stimulating jobs that don't fully utilize their
talents and abilities“
• The term 99er is used(in a rather derogatory manner at times) to refer to the
unemployed section of the population.
• 99ers reportedly put a massive burden on the US Economy.
• Why are they called 99ers?

22. ANSWER:
• 99ers is a colloquial term for unemployed people in the United States, mostly
citizens, who have exhausted all of their unemployment benefits, including all
unemployment extensions. As a result of the American Recovery and Reinvestment
Act passed by Congress in February 2009, many unemployed people could receive up
to 99 weeks of unemployment insurance benefits, hence the name "99ers"

23. 7)
• X is a two word term which refers to a company's net earnings, net income or earnings
per share (EPS). The reference to “______" describes the relative location of the net
income figure on a company's income statement.
• Most companies aim to improve their Xs through two simultaneous methods: growing
revenues (i.e., generate top-line growth) and increasing efficiency (or cutting costs).
• X is nowadays a very commonly used term by most people which means: the primary or
most important consideration. Or the most important point.
• X is a very common term that we all have heard of.
• X?
•

24. SAFETY SLIDE

25. ANSWER: BOTTOM LINE

26. 8) PIC ON NEXT SLIDE. EXPLAIN WHAT IS
BEING TALKED ABOUT HERE
• The picture on the next slide illustrates something which is believed to have been
the cause of the following incidents:
• 2015, a junior employee at Deutsche Bank whose superior was on vacation confused
gross and net amounts while processing a trade, causing a payment to a US hedge
fund of $6bn, orders of magnitude higher than the correct amount. The bank
reported the error to the British Financial Conduct Authority, the European Central
Bank and the US Federal Reserve Bank, and retrieved the money on the following
day
• In 2016, it was believed to have caused the British pound to drop 6% in just a few
minutes to $1.1841, its lowest value for 31 years.
• a Japanese broker placed orders for more than US$600bn (£370bn) of stock in
leading Japanese companies, including Nomura, Toyota Motors and Honda which
was subsequently cancelled. If the order had been fulfilled it would have exceeded
the value of the economy of Sweden.

29. ANSWER: FAT FINGER ERROR
A fat-finger error is a keyboard input error in the financial markets such as
the stock market or foreign exchange market whereby an order to buy or sell
is placed of far greater size than intended, for the wrong stock or contract, at
the wrong price, or with any number of other input errors.

30. VISUAL DIFFERENTIAL ROUND

31. HOW IT WORKS:
• Each slide consists of a cartoon/minimalist poster/picture depicting an Economic,
Business , Finance or Politics related concept, term, etc.
• Think Creatively as the answers could be tongue-in-cheek depictions
• Write down your answers for each question
• Scoring: 10+(number of teams answering incorrectly)
• There are no negatives.

32. 1) WHAT’S BEEN BLANKED OUT?

33. 2)

34. 3)

35. 4)

36. 5)

37. 6)

38. EXCHANGE SHEETS
• 1)

39. 1)

40. 2)

41. 3) TRUMP/ MAKE AMERICA GREAT AGAIN

42. 4) AUSTERITY MEASURES/ EXPENDITURE
CUTS

43. 5)

44. 6)

45. LIST IT!
3 Lists

46. 1)
• List all Brands of PepsiCo India
• 2 points per answer and 5 points bonus for getting all correct.

47. 2)
• List all the countries in the G7
• 2 points for each correct answer and +6 for getting all of them correct

48. 3)
• List all the present divisions of General Motors
• +2 for each part and +10 for getting all of them right

49. EXCHANGE SHEETS!

50. PEPSICO INDIA
• 1) Pepsi
• 2)Kurkure
• 3)Quaker Oats
• 4)Cheetos
• 5)Gatorade
• 6)Uncle Chips
• 7)Aquafina
• 8)Duke’s
• 9)Lehar
• 10)Mountain Dew
• 11)Slice
• 12)Tropicana
• 13)Lay’s
• 14)7 up

51. G7
• Canada
• France
• Germany
• Japan
• GBR
• Italy
• USA

52. GM‘S DIVISIONS
• 1) Buick
• 2)Chevrolet
• 3)Cadillac
• 4)GMC
• 5)Hummer
• 6)Opel
• 7)Vauxhall

53. LONG CONNECT

54. 1) +60/-50 WHAT IS BEING DISCUSSED
HERE?
• In Portugal, it is known as xaroco. In Malta, it is known as xlok. It sounds like a
word of Italian origin, however it is derived from Greek.
• It arises from a warm, dry, tropical airmass that is pulled northward by low-
pressure cells moving eastward across the Mediterranean Sea, with the wind
originating in the Arabian or Sahara deserts. The hotter, drier continental air mixes
with the cooler, wetter air of the maritime cyclone, and the counter-clockwise
circulation of the low propels the mixed air across the southern coasts of Europe.

55. SAFETY SLIDE

56. ANSWER: SCIROCCO

57. 2) +45/-35
• In Greek, the word “X" describes an intense summer rain that lasts for a few
minutes. In Croatian "burno" means "violently" and is commonly used to describe
the weather. X X is a picturesque island resort.
• The wind takes two different traditional names depending on associated
meteorological conditions: the "light X" is X in the presence of clear skies, whereas
clouds gathering on the hilltops and moving towards the seaside with rain or snow
characterize the "dark X"
• Cracking X will be a concrete clue to cracking the long connect.

58. SAFETY SLIDE

59. X-BORA

60. 3)+30/-25
• The Portuguese recognized the importance of the _____ _____ . then the Volta do
mar, meaning in Portuguese "turn of the sea" but also "return from the sea") in
navigation in both the north and south Atlantic ocean as early as the 15th century
• The captain of a sailing ship seeks a course along which the winds can be expected
to blow in the direction of travel. During the Age of Sail, the pattern of prevailing
winds made various points of the globe easy or difficult to access, and therefore had
a direct impact on European empire-building and thus on modern political
geography.
• Two word term required: This two word term in German is a famous product of the
company.

61. SAFETY SLIDE

62. ANSWER: TRADE WINDS/PASSAT WINDS

63. 4)+20/-10
• The X Stream is typically 100 kilometres (62 mi) wide and 800 metres (2,600 ft) to
1,200 metres (3,900 ft) deep. The current velocity is fastest near the surface, with
the maximum speed typically about 2.5 metres per second (5.6 mph)
• Some of the RMS Titanic's victims, whose bodies were buoyed by lifebelts but were
never found by rescue or recovery ships sent to find them, are surmised to have been
carried away in the X Stream.
• X is a 4 letter word. A slight modification of its spelling will give you another product
of the company in the long connect.

64. SAFETY SLIDE

65. X-GULF STREAM

66. 3)+10/0
• ___ streams are fast flowing, narrow, meandering air currents found in the
atmosphere of some planets, including Earth. On Earth, the main ___ streams are
located near the altitude of the tropopause and are westerly winds (flowing west to
east). Their paths typically have a meandering shape.___ streams may start, stop,
split into two or more parts, combine into one stream, or flow in various directions
including opposite to the direction of the remainder of the ___. The strongest ___
streams are the polar ___, at 9–12 km above sea level, and the higher altitude and
somewhat weaker subtropical ___at 10–16 km.
• It is ironic that this company names its products after types of winds in light of
recent events.

67. SAFETY SLIDE

68. ANSWER: JET STREAM

69. LONG CONNECT:
VOLKSWAGEN
Numerous sources suggest, that the name Passat derives from the German word for
trade wind, reflecting the period in Volkswagen's history, when it named its vehicles
from prominent winds and currents, eg. the Volkswagen Golf (after German for Gulf
Stream), the Volkswagen Jetta (after the Jet stream), Volkswagen Bora (after bora),
and Volkswagen Sirocco (after sirocco). A 2013 report of the former ad says, that dr.
Carl Hahn - former chief Volkswagen of America and new WP Schmidt - former sales
chief at Volkswagen for conclusive evidence suggests, that Volkswagen employed a
naming theme with its front-drive and water-cooled vehicles
The irony is that Volkswagen was embroiled in the emissions scandal