Step 1.Examine the case study, "Ecommerce at Yunnan Lucky Air". http://web.archive.org/web/20200715073533/https:/mitsloan.mit.edu/LearningEdge/CaseDocs/08-076%20Ecommerce%20at%20Yunnan%20Lucky%20Air%20-%20Lehrich.pdf

Step 2. Help with the following prompts based on the information in the case study.

Question 1: Describe the challenges Lucky Air faced when collecting fares directly from customers.

Answer:

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Question 2: How did Lucky Air usually sell tickets?

Answer:

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Question 3: Identify the four functions of money.

Answer:

Function 1 -

Function 2 -

Function 3 -

Function 4 -

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Question 4: Which of the four functions of money in China's financial system was not efficient?

Answer:

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Question 5: Suppose China started to have a high inflation rate because VAT was increased. What would you recommend to Lucky Air about selling tickets several months in advance?

Your recommendation:

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Question 6: In your opinion, should China's central bank improve the efficiency of the financial system, or is that better left to the free market? Why?

Answer: