a. Hypothesise why cash and future cash flow is so important for an individual, business or country and why it is important to report such information.
b. Many critical commentators throughout the press have called for an end to an attitude of the 'debt-is-money' style of thinking. Differentiate between solvency and liquidity and their relationship to debt.
c. Make a judgement about the governments' economic stimulus efforts. Should the governments have bailed out the banks? In answering this question assess a government's duty to provide an economic framework that encourages investment, employment, opportunities and social infrastructure with its desire to keep a banking system intact and credit forthcoming.
d. In Europe, the European banks have been forgiven for not valuing some of their asset holdings (creditors that owe them money) in Greek, Portuguese, Irish and Spanish securities in line with the required marked to market accounting rules. This means that they have not revalued downward these assets to what they are really worth. (One could argue that they are worthless.) If they did their equity would be wiped out. Assess this situation by commenting on the transparency of this approach, on whether this is sound accounting practice and the effect of this position in the long term.
e. Appraise the reactions of both the nudists and the looters to their government's response to the changing global economy.