Special Education Implementation For Native American Girls Essay

Special Education Implementation For Native American Girls Quality education for children has been an ongoing issue for today's society. There has also been an increasing concern for the education of students with special needs. The effect of these concerns has been noted in many communities, such as the Native American community. The population of special education students in the Native American communities is not necessarily higher than others, however, their community is effected, therefore also in need of quality special education programs. The need for quality special education is strongly felt by the women and girls within the Native American culture because of the pressures of their cultures and societies. Woman and girls have always held distinctive roles within the Native American community. These role have withstood the test of time. In a discussion with Juan Zuniga, a bilingual educator with an emphasis on Hispanic and American Indian cultures, I found that women in the Native American society are very much so, encouraged to stay at home and be homemakers. They are far less likely to pursue further education and often find it hard to gain the support to complete high school. The importance of education among females in their society is not as predominant as in others (J.Zuniga). In some cases it is necessary for young Indian people to leave their homes and families to obtain an adequate education for the preparation of today's society (National Indian Child Conference 1979). They are also faced with being torn between modern American ways and their tribal customs and beliefs. Because of this it is often instilled in them that they are incapable of achieving. This sense of self worthlessness ... ...e, Michael, and Others. "Your Rights: A Handbook for Native American Youth in Arizona." Washington, D.C.: Office of Juvenile Justice and Delinquency Prevention, 1982. Foster, Carl G., and Gable, Emma. " The Indian Child in Special Education: Two Persons' Perceptions." ERIC, 1980. Grossman, Herbert. "Special Education In A Diverse Society." Allyn and Bacon: Boston, 1994. "Report of The National Indian Child Conference." Administration for Children, Youth, and Families: Washington, D.C., 1979. "Resource Directory: Migrant and Indian Exceptional Children." Department of Education: Washington, D.C., 1981. Winzer, Margret A. "The History of Special Education From Isolation to Integration." Gallaudet University Press: Washington, D.C., 1993. Zuniga, Barbara. Personal Interview. March 26, 1999. Zuniga, Juan. Personal Interview. March 25, 1999.

Judgment in the House of Sand and Fog by Andre Dubus Essay example --

People place judgment on one another every day based on differences. Sometimes it is done subconsciously; sometimes it is done on purpose. In the book The House of Sand and Fog, by Andre Dubus III, two different cultures were represented; Kathy represented the culture of the western civilization, whereas Behrani represented the culture of Persians. People judge one another based on unimportant things, and get judged based on those same things as well. Two cultures were used to amplify how different their cultures were from one another. Throughout the book cultures vocalized what they did not like about the other cultures by placing judgment on people based on ethnicity, appearance, and status; despite how different the cultures were, they had something in common, negative judgment. In a world where there is so much diversity, the only way for all cultures to get along is to place judgments aside and accept the differences. The book is introduced with Behrani placing judgment on the people he works with. He is judging the other people based on their race, and their status. Behrani refers to the men he works with as if they don't deserve to even be in his presence. "He is goh, the shit of life. They are all goh," (pg 16). Even though many of the men he works with do not deserve to be regarded so low, Behrani judges them as he would if he still maintained the position he had in Iran as a colonel. Behrani and his family also judge Kathy for being American. When Behrani explains to his son the situation their family is now a part of he explains it in a way that is judging of Americans. He says, "Remember what I have told you of so many Americans: they are not disciplined and have not the courage to take responsibility ... ...g, like it was in the book The House of Sand and Fog. Much of the outcome of the book was based on the fact that judgments were made, had judgment not been made about status, Kathy may not have cared so much about getting that house back, had Behrani not been judged based on status, he may have not bought that home. Cultures judge one another every day, and people within those cultures judge each other as well. This constant judging of others and of ones self is what causes people to be unhappy in the first place. The only way to live happily within ones culture, and in the world of many cultures, is to accept that each culture and person is different, which is what makes each culture and person so special; the only way to live happily in ones life, is to accept and embrace differences. Works Cited: Dubus, Andre. House of Sand and Fog. New York: Norton, 1999

Of Water and the Spirit by Malidoma Patrice Somé Essay

With Of Water and Spirit Malidoma Patrice Some has written a very interesting, engaging autobiography in which he details his life as a man living between two different lifestyles: the traditional life of his people, the Dagara, who live in rural Burkina Faso, the former French Colony known as the Upper Volta, and the life of a highly educated African man with two PhDs who travels throughout the western nations writing, lecturing, and teaching about his people and their relationship between the normal world and the spirit world. According to Some his first name â€Å"Malidoma† means â€Å"be friends with the stranger/enemy. † The Dagara believe a person’s name has an affect on the his life so they name their children something that will always remind them of their mission in life. Some, then, is â€Å"here in the West to tell the world about my people any way I can, and to take back to my people the knowledge I gain about this world† (Some 1994, 1). Some was named Patrice when he was baptized by Jesuit priests at the insistence of his father who had converted to Catholicism. The attitude of Some and the Dagara people is very interesting. Instead of feeling hatred against the white men who had colonized the country and basically enslaved the people while stealing their land and resources, the Dagara are concerned about all people, including the white people and are â€Å"convinced that the West is as endangered as the indigenous cultures it has decimated in the name of colonialism† (Some 1994, 1). They believe that western cultures abandonment of â€Å"functional spiritual values† has made the West sick with a â€Å"sickness of the soul† (Some 1994, 1). Some was basically kidnapped from his tribe at the age of four when he was taken away to study at the Jesuit school. At the time the Jesuits were trying create a â€Å"native missionary force† to help in converting the people of Upper Volta. Prior to being kidnapped Some had spent much of his childhood with his grandfather, a great leader of the Dagara. His grandfather taught him many of the stories of the Dagara people, their spiritual beliefs, and their history. Some’s grandfather emphasized the close spiritual relationship of the Dagara with the world, the land, and the spirits of their deceased ancestors. The Dagara believe there is an important connection between an individual, his people, his land, and his god. Some’s grandfather could not understand the Catholic Church’s attempts at missionary work throughout the world, â€Å". . . let me tell you that a God who would send his people away from their land must be drinking a very strong wine all the time† (Some 1994, 29). At the time of his death, Some’s grandfather told Some that the ancestors had designated Some to â€Å"follow the white man so that you may serve as the eye of the compound, the ear of your many brothers, and the mouth of your tribe† (Some 1994, 40). Some’s grandfather also told him that he came back to the tribe he would appear strange to the Dagara, he would only be part Dagara and would have to undergo the month long initiation in the wilderness to become a member of the tribe. Some’s time at the Jesuit school was unpleasant. The priests often beat him while they were teaching him as if the beatings would reinforce the lessons and make him confirm to the Jesuit teachings. When he graduated to the seminary school at Nansi he had similar experiences and often found that he lived outside of himself. He would make his â€Å"thoughts go away from my body so that when the first blow fell, I [he] was not even aware of it† (Some 1994, 114). Some resented the way he was treated and found himself rebelling against the method of instruction. This rebellion reached its climax when Some was twenty and became involved in a physical altercation with one of the priests. During the struggle the priest fell through the window and landed in the dirt outside. Consequently, Some ran away from the school to return to his home. His journey home took him eleven days since he was forced to walk the entire way. Ironically, on his journey, Some learned that the country had gained its independence from France in 1960 and such forced schooling had come to an end. Since Some was about four-years-old both when independence occurred and when he was taken away from his people to attend school, he could have returned to his people long before (Some 1994, 153; 99-156). By the time he returned to his village, the Jesuit missionary priests on the hill were gone, although a day school still existed. Once Some was in his home compound, he found he no longer fit it with his people. He had forgotten how to speak the language; the village had changed with independence. His people were not comfortable with him there, nor was he comfortable with them. Consequently the elders decided he should undergo the Baor, the month long initiation, â€Å"to quiet the white man in your soul . . . so that his â€Å"soul [would] come back home and . . . stop being a stranger to yourself and to us† (Some 1994, 178). Some describes his spiritual initiation in detail and tells how he was able to return to the Dagara. Once he had returned fully to the Dagara, Some found that he was again not comfortable living with his people because he had not yet completed his mission that his grandfather had told him about and that his ancestors had assigned him. Once again it became necessary to leave his people so the he might â€Å"be friends with the stranger/enemy. † This is what Some continues to do today through his writings and lecturing. However, he is careful to return to his home every year to make certain he reconnects with his home and people. Bibliography Some, Malidoma Patrice. Of Water and the Spirit: Ritual, Magic, and Initiation in the Life of an African Shaman. New York: G. P. Putnam’s Sons, A Jeremy P. Tarcher/Putnam Book, 1994.

Fdsgsd

Capital is A ) tools, equipment, and factories used in the production of goods and services; one of four factors of production. Economics is the use of what to produce and distribute goods and services? Correct D ) resources Want is Correct B ) way of expressing a need that leads to a preference for some goods over others The fundamental economic problem is Correct B ) scarcity. Why do economists need to find the answer to all three of these questions? Correct D ) there are not enough resources to satisfy people's seemingly unlimited wants Markets where productive resources are bought and sold are ______ markets.Correct A ) factor The key feature of the circular flow of economic activity is the Correct C ) market. Economics is based on Correct B ) scarcity. includes the tools, equipment, machinery, and factories used in the production of goods and services. Correct B ) Capital Twenty percent of the world's people in the wealthiest nations consume ____ percent of the world's goods and services. Correct A ) 86 In this passage, â€Å"Too much marketing today focuses on awareness rather than reasons to buy. In the old days, awareness advertising was more effective.There was less competition. All you had to worry about was whether or not people remembered your product. As technology and more kinds of media have come about, it's no longer enough to be remembered. The consumer has too many choices. Your marketing has to send the message that you are relevant. You need to be sending reasons to buy. † Advertisers are advised to focus on the economic concept of Correct C ) utility Manufactured goods needed to produce other goods and services are called Correct B ) capital goods. The dollar value of all final goods and services and the ost comprehensive measure of a country's total production output is Correct D ) Gross Domestic Product (GDP). The three basic economic questions everyone must answer are Correct C ) WHAT to produce, HOW to produce, FOR WHOM to produc e. Human capital is Correct B ) the sum of the skills, abilities, health, and motivation of people. According to Alice Rivlin in this passage: â€Å"Economic literacy is like having a working knowledge of a foreign language. If you are with a group of foreigners and don't speak their language at all, you feel excluded.If you have a rudimentary working knowledge of the language, you can at least follow the drift of the conversation, ask a few questions and feel that, even if you are not getting the fine points, you are not totally left out and you have a basis for acquiring more knowledge. That, it seems to me, is what economic literacy means-a rudimentary working knowledge of the concepts and language of economic activity. If you have a rudimentary working knowledge of economic concepts, you will be Correct B ) able to ask questions to gain more knowledge. Factors of production is/are CorrectB ) productive resources that make up the four categories of land, capital, labor, and entr epreneurship. â€Å"There Is No Such Thing As A Free Lunch† reminds us that Correct A ) resources are scarce and that we must make careful economic decisions regarding WHAT, HOW, and FOR WHOM to produce. In this passage, â€Å"To take an example,†¦ One man draws out the wire, another straightens it, a third cuts it, a fourth points it;†¦ and [the making of] a pin is, in this manner, divided into about eighteen distinct operations. † Adam Smith is describing the basic economic concept of CorrectC ) division of labor. The situation in which some necessities have little value while some non-necessities have a much higher value is known as Correct A ) paradox of value. The money used to buy the tools and equipment needed for production is known as Correct C ) financial capital. In which type of economy do consumers and privately owned businesses make the majority of the WHAT, HOW, and FOR WHOM decisions?. Correct B ) free enterprise Division of labor is a charact eristic of Correct B ) assembly line production. The free market economy has developed a strong CorrectB ) system of banks. In modern economies, the medium of exchange is Correct B ) money. Which of the following lists the four factors of production? Correct D ) land, labor, capital, entrepreneurs Actions in one part of the country or world that have an economic impact on what happens elsewhere are examples of Correct D ) economic interdependence. Uneven distribution of oil reserves around the world is an example of scarcity of Correct C ) geography. One advantage of a ___________ economy is that it gradually adjusts to change over time. Correct A ) market A traditional economy is an CorrectB ) economy in which the allocation of resources and nearly all other economic activity from ritual or habit. The high degree of freedom in a market system is illustrated by the fact that Correct A ) producers can make whatever they think will sell. To arrive at an economic decision, a decision-m aking grid may be used to evaluate Correct C ) alternative choices of action. Who makes economic decisions in a command economy? Correct C ) the government An example of a market economy is Correct C ) the United States Economics is the use of what to produce and distribute goods and services? Correct D ) resourcesIn the cost-benefit analysis described in this passage: â€Å"Research has long demonstrated the educational value of early intervention for America's at-risk children, but a new study also shows the federal programs are a wise public investment. who are the investors A cost-benefit analysis of the federally funded Chicago Child-Parent Center program, which serves children from low-income families in Chicago's inner city [shows that] an average annual cost of $6,730 per child generated a total return to society at large of $47,759 per participant. † Who benefited from the savings? Correct C ) all of societyA popular model used to illustrate the concept of opportunit y cost is Correct A ) the production possibilities frontier. Which of the following best describes the relationship between trade-offs and opportunity costs? Correct A ) Opportunity costs are incurred when trade-offs are made. The study of economics is important because it enables us to Correct C ) become better decision makers. The most important function of a distribution system is to link _____. Correct C ) producers and consumers Which term refers to the idea that if you have more of one thing, you must have less of another? CorrectB ) opportunity cost What type of economic system does this passage: â€Å"So long as mankind lived by raising crops and herding animals, there was not much need for measuring small units of time. The seasons were all important-to know when to expect the rain, the snow, the sun, the cold. Why bother with hours and minutes? Daylight was the only important time, the only time when men could work. † describe? Correct A ) traditional economy The pu rpose of government in a command economy is to Correct C ) make major economic decisions. A market economy Correct A ) does not provide for everyone's basic needs.Opportunity cost is the Correct D ) cost of the next best alternative use of money, time, or resources when one choice is made rather than another. An economy at its production possibilities frontier is operating Correct B ) at full potential. The term â€Å"standard of living† refers to Correct A ) quality of life in a country. Bar graphs Correct A ) shows relationships between different data series is the bar graph. Here the height of the bar represents the measured value or frequency: The higher or longer the bar, the greater the value. The main drawback of the traditional economy is that itCorrect A ) tends to discourage new ideas and ways of doing things. In the economic system described in this passage: â€Å"Diaguita Indians have lived in this region for generations†¦ We grow beans, corn and potatoes on the mountain slopes. To irrigate these crops, we still use the channels built centuries ago by our ancestors. We also breed llamas. In our community, the more llamas you own, the richer you are† . answers to the basic economic questions would be determined by Correct A ) habit and custom. All of the following are characteristics of a command economy EXCEPTCorrect B ) public services are available at little or no cost. In a ____________ economy, a central authority makes most of the WHAT, HOW, and FOR WHOM decisions. Correct B ) command What do we call a way of thinking that compares the cost of an action to its benefits? Correct A ) cost-benefit analysis What is the single largest source of revenue for the federal government? Correct C ) individual income taxes The benefit principle of taxation states that Correct D ) people who benefit from government goods and services should pay taxes according to the benefit they receiveFICA includes taxes to pay for Correct A ) Social Se curity and Medicare. Personal individual income tax is a _____________ tax. Correct B ) regressive An exception or oversight in the tax law that allows some people and businesses to avoid paying taxes is called a Correct C ) tax loophole The three criteria for effective taxes are Correct D ) equity, simplicity, and efficiency A ________ tax paid by corporations on their income. Correct D ) corporate income tax This passage: â€Å"We'll cut your taxes† is the most repeated campaign promise in the history of American politics.Yet somehow it is still considered visionary, worth a fight. Worth, indeed, a crusade. Why? It's in our blood. Historically, Americans have hated taxes, and not merely because we had to pay them. We've hated taxes because we've perceived them to be an infringement on our liberty-and the source of big, powerful, and mischievous government. This was true from the beginning. It wasn't just â€Å"taxation without representation† that bothered us so much . It was taxation. Period. † compares the feelings of Americans toward taxation today to those same feelings around the time of the Correct C ) American Revolution.The incidence of a tax can more effectively be shifted from the supplier to the consumer if Correct A ) the demand curve is inelastic. The ability-to-pay principle of taxation states that Correct C ) people should be taxed according to their ability to pay. Iowa residents can take solace in knowing that they'll likely help the state with its budget crunch if President Bush cuts federal taxes. Iowa's softening economy has left state government revenue stagnant, a problem caused by a lack of spending by Iowans. Sales-tax receipts have barely bumped up from last year, and it's coming back to hit the state budget.In Iowa, residents get to deduct their federal income taxes from their state income taxes. So if the federal government saves Iowans $1 billion in income a tax, that's $1 billion that the state will get to tax. According to the passage, how will a cut in federal income taxes help the Iowa state budget crunch? Correct A ) The state can tax more of residents' income. Intergovernmental revenues are generally intended for Correct A ) education and public welfare. According to the passage: America can celebrate Tax Freedom Day ® on May 3, 2001, according to the Tax Foundation's annual calculation.That means that the nation's taxpayers have to work from January 1, 2001, to the 123rd day of the year before earning enough money to pay for government-federal, state, and local-and start spending money on themselves. †¦ Individual income taxes represent the largest component of Americans' tax bills†¦. what is the meaning of â€Å"Tax Freedom Day†? Correct D ) By that day, you have earned enough to pay your income taxes for the year. The authority to levy a federal income tax comes from Correct B ) the Sixteenth Amendment. An excise tax is a Correct B ) tax on the manufacture and s ale of selected items. The â€Å"incidence of a tax†Correct B ) refers to those who bear the final burden of taxation. A _____________ tax is tax on tangible and intangible possessions, such as real estate, buildings, furniture, stocks, bonds, and bank accounts. Correct B ) property The three largest sources of revenue for local governments are Correct A ) utility and liquor store income, property tax, and intergovernmental revenues. FICA is Correct D ) tax levied on employers and employees to support Social Security and Medicare According to the passage: â€Å"Back in 1940, when the Social Security program was just getting under way, average life expectancy was less than 64 years.The program's designers expected that most people would contribute to the program most of their lives and die before collecting a dime in retirement benefits. Today, average life expectancy in the United States is more than 75 years. As life expectancy has soared, birthrates have declined, leaving fewer and fewer workers to support the ballooning number of retirees. In 1950, [the system] was solidly supported with 16 workers paying for each retiree; today, there are just over three workers per beneficiary. † The increase in average life expectancy has created a problem for the Social Security system becauseCorrect B ) more people are collecting retirement benefits. The two broad categories of government spending are Correct B ) the purchase of goods and services and payments to disadvantaged groups. Although direct mail and special events are typical fundraising methods, one senator who was challenging an incumbent got the most money from his own personal phone calls to donors. Correct A ) True Transfer payments from the government to individuals or other levels of government might be used for all of the following EXCEPT Correct C ) maintenance of the armed forces. A Value-added tax is CorrectA ) tax placed on the value that manufacturers add at the end of production. B ased on this passage: â€Å"Every year at this time, Congress discovers, with a great public show of dismay and indignation, the existence of the American tax code and the agency that administers it, the Internal Revenue Service. There are high-minded calls for abolishing the current tax system and replacing it. Around April 15, Congress likes to pretend that the tax code just sort of appeared or just happened. But the Constitution puts the burden of taxes solely, exclusively and entirely on Congress' shoulders.The tax code is the way it is because a majority of Congress wants it that way. Members of Congress probably like to pretend that the tax code just â€Å"sort of appeared† because they Correct B ) don't want voters to associate them with taxes. Leisure and creative pursuits are called Correct D ) culture The Taxpayer Relief Act of 1997 Correct D ) did little to benefit people without children or capital gains. Overall, who benefited most from tax reform in 1997? Corre ct C ) the top 20 percent of wage and income earners __________ is the part of the economy made up of federal, state, and local governments. CorrectB ) Public sector The flat tax Correct D ) simplifies the tax process. A value-added tax (VAT) is Correct B ) tax on the value added at every stage of the production process The alternative minimum tax Correct B ) requires people to pay a minimum tax of 20 percent. The VAT is a ______ tax. Correct D ) federal All of the following are effects of increased government spending EXCEPT Correct D ) a decrease in competition between the public and private sectors. The flat tax Correct C ) departs from ability-to-pay principle of taxation. All levels of government combined consume about Correct B ) one-third of the nation's output.All of the following EXCEPT one are advantages to a value-added tax. Correct B ) it is invisible to consumers All of the following are effects of the federal debt EXCEPT Correct D ) interest rates are lowered. An examp le of mandatory spending is financing for Correct A ) interest payments on the federal debt. The pay-as-you-go provision is Correct D ) requirement that new spending proposals or tax cuts must be offset by reductions elsewhere. Who pays for the maintenance on the state highway linking Tyler, Texas, with Corsicana, Texas? Correct C ) Texas The sequence for the approval of the federal budget is CorrectB ) president to Congress back to president. Based on the facts given in the passage: â€Å"One result of the current Social Security debate has been to concentrate the public's mind on the true economic condition of the elderly. While the top 20% of seniors are relatively affluent? almost all of the rest are highly dependent on Social Security. The program provided at least half of the total income of more than 55% of senior citizens and at least 75% of the total income of more than a third. Social Security lifted 11. 4 million seniors-or nearly half of the 65-and-older population-out of poverty, cutting the elderly's poverty rate from 47. % to 11. 9%. ,† approximately how many Americans are age 65 or older? Correct C ) slightly under 22. 8 million Of the four categories listed below, which accounts for the largest amount of local expenditures? Correct B ) public utilities Which of the following statements best describes the relationship of the federal deficit to the federal debt? Correct B ) The federal deficit leads to borrowing, which adds to the federal debt. According to the passage: â€Å"One result of the current Social Security debate has been to concentrate the public's mind on the true economic condition of the elderly.While the top 20% of seniors are relatively affluent? almost all of the rest are highly dependent on Social Security. The program provided at least half of the total income of more than 55% of senior citizens and at least 75% of the total income of more than a third. Social Security lifted 11. 4 million seniors-or nearly half of th e 65-and-older population-out of poverty, cutting the elderly's poverty rate from 47. 6% to 11. 9%. ,† about what percentage of the elderly would be living in poverty if the Social Security system did not exist? Correct A ) 47. 6% The United States government accumulated huge deficits during the 1980's due toCorrect C ) a doubling of spending on national defense. All of the following are differences between the federal debt and private debt EXCEPT Correct C ) the federal debt is the total amount of money borrowed from investors. Interest on debt is Correct D ) costs incurred by both state and local governments for borrowing money Which of the following is NOT an example of a local government? Correct C ) neighborhood associations The federal debt is Correct D ) amount borrowed to finance deficit spending budget with neither a surplus or deficit Which of the following is an example of an entitlement payment?Correct B ) federal money given to a senior citizen as a Social Securit y payment All of the following are local officials with approval power for spending EXCEPT Correct D ) the tax assessor. Which of the following statements best describes the relationship of the federal deficit to the federal debt? Correct B ) The federal deficit leads to borrowing, which adds to the federal debt. From the choices below, identify when the federal government began significant deficit spending. Correct C ) 1980's Of the four categories listed below, which accounts for the largest amount of state expenditures?Correct D ) higher education Who formulates the federal budget? Correct C ) the president Of the four categories listed below, which accounts for the largest amount of local expenditures? Correct B ) public utilities Based on the passage: â€Å"The Aztec in Central America used cacao beans, from which chocolate is made, as money. Prices varied from a few beans for a piece of fruit to several thousand for an enslaved person. Aztec merchants had to take care when se lling expensive items. Payment usually came stored in sacks, and the sacks might contain counterfeit money-bean husks filled with mud. What type of money did the Aztec use? Correct D ) commodity money Which of the following statements about a gold standard is FALSE? Correct C ) It is easier to expand the money supply. The United States government ended the gold standard in Correct B ) 1934. Based on the passage: † To get its new Sacajawea dollar into circulation, the U. S. Mint has issued more than 500 million of the golden coins since the end of January, not only to banks, but also to Wal-Mart and Sam's club stores. But in what may be the greatest coin trick ever, the dollars have all but vanished.People are making them into jewelry, auctioning them off on eBay, and leaving them under pillows on behalf of the tooth fairy-anything but spending them†¦. The Mint expects Sacajawea to be back in circulation by year-end, when more than a billion of the dollars will have been m inted and the novelty, it hopes, will have worn off. † Sacajawea dollars have disappeared because many people believe they are Correct A ) worth more as a commodity than as currency. According to the passage: â€Å"After the collapse of the Soviet Union in 1990, Russian currency was not trusted. Real money played a fairly small part in Russia's economy.Most business was conducted by barter or with IOUs. For example, workers rarely received wages in the form of cash. A bicycle factory outside the city of Perm paid its workers in bicycles! To get cash, the workers had to sell their â€Å"paychecks† More often than not, they simply traded the bicycles for the products they want. † most business in Russia, at that time, was conducted without currency because Russian currency was not Correct A ) accepted. Greenbacks and United States notes were issued to Correct A ) raise money to finance the Civil War. The value of fiat money is Correct D ) faith in the government.Th ese passages in the United States Constitution† â€Å"Article 1, Section 8: The Congress shall have the power: To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures; To provide for the punishment of counterfeiting the securities and current coin of the United States; To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof and in Article 1, Section 10: No State shall coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts†¦. † made which of the following statements true at that time? Correct C ) The government could not print paper money.Which of the following statements about a gold standard is FALSE? Correct C ) It is easier to expand the money supply. The problem with Continental dollars was that Correct A ) so much was printed they became nearly worthless. Money that has an alternative use as an economic good is Correct A ) commodity money. Money functions as all of the following EXCEPT Correct D ) a measure of value. One disadvantage of using gold as a standard for money is Correct D ) paper currency holders could exchange it for gold. What is the origin of the American dollar? Correct B ) the Spanish peso and shillings Money by government decree; has no alternative value or use as a commodity is called Correct C ) fiat moneyFiat currency is also known as ________. (hint: look at the paper money in your possession. ) Correct A ) legal tender The part of modern money that we can touch consists of Correct B ) Federal Reserve Notes. Local banks in the 1800's that printed too much money were called Correct A ) wildcat banks. ________ is/are the monetary standard under which the basic currency unit is equivalent to, and can be exchanged for, a specific amount of gold Corr ect D ) Gold standard To make a difference with the Spanish peso, Benjamin Franklin and Alexander Hamilton divided the dollar into Correct B ) tenths (10 equal pieces). Most stocks in the United States are traded on theCorrect B ) over-the-counter market. In what city was America's first stock exchange located? Correct B ) Philadelphia To determine Gross National Product, Correct C ) add to GDP all payments received by Americans outside the U. S. and subtract payments made to foreign-owned resources in the U. S. In 2001, the national debt was $5. 1 trillion dollars. When President Obama was inaugurated in January of 2009, the national debt was $10. 6 trillion. Sixteen months later the national debt is Correct A ) $13. 1 trillion dollars. In the Gross Domestic Product defense spending is in which sector? Correct B ) governmenGross Domestic Product is CorrectD ) dollar amount of all final goods and services produced within a country's borders in a year. Which is the best measure of th e nation's income? Correct B ) GNP Which stock exchange the largest electronic screen-based equity securities trading market in the United States. Correct D ) NASDAQ A bull market is a Correct C ) period during which stock market prices move up for several months or years in a row. The Efficient Market Hypothesis argues that Correct A ) stocks are always priced about right and bargains are hard to find. A bear market is a Correct A ) period during which stock market prices move down for several months or years in a row.The great majority of stocks in the United States are traded on Correct C ) the over-the-counter market. The Efficient Market Hypothesis argues that Correct A ) stocks are always priced about right. According to the United States Treasury, the US national debt is the Correct A ) principal amount owed by the US to its lenders, for example, China and Japan A stock transaction that is made immediately at the market price is made in the Correct B ) spot market. The larges t sector of the macroeconomy is the Correct D ) consumer sector. The Dow Jones Industrial Average (DJIA) represent what market value of all U. S. stocks on the New York Stock Exchange Correct A ) fifth (20%)Which of the following is the most important aggregate of how a country is doing economically? Correct C ) gross national produce Investors who sign a contract guaranteeing them the option of selling shares of stock at a specified price in the future have agreed to a Correct D ) put option. In the model GDP = C + I + G + F, the â€Å"F† represents the Correct B ) difference between the dollar value of goods sent abroad and goods purchased from abroad. Since colonial times, the average size of a household in the United States has Correct B ) decreased. Which best describes the movement of the center of population of the United States? Correct C ) east to westBy April 2000, the population of the United States stood at about 281. 4 million people. This year's anticipated cens us will be _____ million people. Correct D ) 309 The official count of all people in the United States is called Correct D ) the decennial census. A price index is a ______________. Correct C ) a statistical series that can be used to measure changes in prices over time Real GDP is Correct D ) GDP adjusted to remove the distortion of inflation. Life expectancy is the Correct A ) average remaining life span in years for persons who attain a given age. Since colonial times, the rate of growth of the United States population has Correct B ) steadily decreased.What is the implicit GDP price deflator? Correct A ) a price index that measures price changes in GDP All of the following factors affect population growth EXCEPT Correct A ) demographers. All of the following statements about real GDP are true EXCEPT Correct C ) real GDP is the same as current GDP. Which of the following is the correct way to calculate real GDP? Correct B ) Divide current GDP by the implicit GDP price deflator an d then multiply by 100. The United States lost 600,000 soldiers during World War II and another 37,00 in the Korean War. In the years from 1946 until 1964 there were 76 million babies born. This era has been named the Correct B ) baby boom.The official count of all people in the United States is called Correct D ) the decennial census. Economists know it is important to track inflation because it Correct B ) distorts statistics about overall economic performThe mean center of United States population (using the centroid definition) has been calculated for each U. S. Census since 1790. Currently this point is located in Correct D ) Missouri. All of the following factors affect population growth EXCEPT Correct A ) demographers. To construct a price index, all of the following are needed EXCEPT Correct B ) the current inflation rate. Business cycles are Correct A ) nonsystematic upturns and downturns of real GDP.Real GDP per capita is the preferred measure of economic growth over the l ong run because Correct B ) prices and the population change over time. This marked the beginning of the Great Depression in 1929: Correct D ) stock market crash The United States experienced almost no growth in real GDP per capita Correct A ) between 1929 and 1939. Which of the following factors affect economic growth? Correct D ) all of the above Which of the following statements about economic growth is FALSE? Correct C ) Economic growth decreases the tax base. Increasing productivity results in Correct A ) increasing economic growth. An econometric model is a CorrectD ) macroeconomic model that uses algebraic equations to describe how the economy behaves. A number of factors are important to economic growth-especially the quantity and quality of the Correct C ) factors of production (A)(An) ___________ is a monthly statistical series that anticipates changes to the real GDP. Correct D ) index of leading indicators The United States experienced almost no growth in real GDP per ca pita Correct A ) between 1929 and 1939. A period during which real GDP declines for two quarters in a row, or six consecutive months, is call a(n) ___________. It begins when the economy reaches a peak, and ends when the economy reaches a trough. Correct A ) recession The passage: â€Å"A key gauge of future U. S. conomic activity declined 0. 5% last month, as the Sept. 11 terrorist attacks in New York and Washington weakened an already troubled economy. The Conference Board said Monday its index of leading economic indicators fell to 109. 2 in September,†¦ the largest one-month decline since January 1996†¦. The index indicates where the overall U. S. economy is headed in the next three to six months†¦. The economy had been struggling for several months before the Sept. 11 attacks. Many economists have said they believe that a recession is unavoidable with the new uncertainties raised by the disaster. † discusses a business fluctuation influenced by Correct D ) external shock.The _____ is a composite index of 11 economic series that move up and down in advance of changes in the overall economy; statistical series used to predict business cycle turning points. Correct C ) econometric model Your ________ is the quality of life based on the possession of necessities and luxuries that make life easier. Correct B ) standard of living Increasing productivity results in Correct A ) increasing economic growth. The business cycle since World War II has been characterized by Correct A ) extended expansions alternating with brief recessions. Changes in ____________ expenditures are one cause of business cycles. Correct D ) capital A major feature of a __________ is its ability to increase real per capita output enough to allow people to raise their standard of living.This system also increases people's free time, allowing them to devote more attention to families, hobbies, and recreational activities. Correct C ) free enterprise economy When product ivity grows, people produce relatively ______ with the same amount of inputs, and the prices of goods and services tend to stay _______. Correct D ) more, low The change in price level is the _______. Correct B ) an increase in the general price level Prices tend to _______ during expansions and then ________ during recessions. Correct A ) rise faster, slow down To measure the price level, economists select a market basket of goods and then construct a price index such as the Correct B ) consumer price index, producer price index, or implicit GDP.Because there are always some workers who are in the process of changing jobs, there will always be some ____________ unemployment in the economy. Correct D ) frictional According to the passage: â€Å"The nation's unemployment rate rose to 4. 5 percent in June as manufacturers continued to suffer heavy job losses and demand for workers in service industries fell to the lowest level in 10 months. The Labor Department reported Friday that t he jobless rate rose 0. 1 percentage point from a 4. 4 percent rate in May. The 4. 5 percent level matched the unemployment rate in April with both months representing the highest level the jobless rate has reached in the year-long economic slowdown. † what was the highest level that unemployment reached that year? Correct D ) 4. % All of the following are theories regarding the cause of inflation EXCEPT Correct C ) cost-pull. Unemployment that occurs when a fundamental change in the operations of the economy reduces the demand for workers and their skills is called ___________ unemployment. Correct A ) technological The ________ curve is a curve that shows how much the actual distribution of income varies from an equal distribution. Correct B ) Lorenz At the peak of the Great Depression 1 out of ____ were unemployed. Correct A ) 4 A relatively low rate of inflation, usually 1 to 3 percent annually is Correct A ) creeping inflation A booming economy. Record-low unemployment.A blizzard of pink slips [a note stating that a person has been fired]. What's wrong with this picture? The fact is, even in the best of times hundreds of thousands of people lose their jobs through no fault of their own†¦. You might not get any advance warning, so don't be caught off guard. Have an up-to-date resume and networking system†¦. You want to be able to launch your job search soon after you get the bad news. What type of unemployment does this passage describe? Correct D ) frictional The unemployment rate understates employment conditions for all of the following reasons EXCEPT Correct A ) some workers are â€Å"between jobs† for one reason or another. Galloping inflation is CorrectB ) intense form of inflation that can go as high as 100 to 300 percent The passage: â€Å"For all the recent talk of cutting taxes, Congress rarely cuts them when the economy is growing robustly, as it is now, and unemployment is low. The worry among economists is that the extr a money in people's pockets may make an already strong economy too strong, finally stoking inflation after a long period of relatively stable prices. † describes rising inflation as a possible result of Correct B ) a booming economy. According to the demand-pull theory, inflation is caused by Correct D ) consumers. Full employment is reached when the employment rate drops below _____ percent. Correct B ) 4. 5 Changes in technology and changes in consumer tastes can cause Correct B ) structural unemployment.According to the demand-pull theory, inflation is caused by Correct D ) all of the above. Unemployment that is directly related to swings in the business cycle is Correct C ) cyclical unemployment According to the passage: â€Å"The Bank of Amsterdam was established in Holland in 1609. At that time, Amsterdam was a center of world trade. More than 340 different kinds of silver coins and about 500 types of gold coins circulated throughout the city. Dutch merchants had little idea how much these coins were worth, so the Bank of Amsterdam was set up under a charter from the city to standardize the currency. The Bank of Amsterdam operated as Holland's central bank for more than 200 years.After making a series of bad loans, however, it failed and went out of business in 1819-almost 100 years before America's central bank was founded. † why did the Bank of Amsterdam stop operating? Correct C ) It made bad loans. actions by the Federal Reserve System to expand or contract the money supply in order to affect the cost and availability of credit Correct D ) monetary policy A portion of the deposits in the form of coins and currency that banks and other depository institutions are required to hold are called ________ reserves. Correct D ) legal The quantity theory of money holds that excessive increases in the monetary supply Correct C ) lead to inflation.Federal Reserve Chairman Alan Greenspan decided seven years ago to publicize the central bank's intere st-rate moves once they were made. Now, each meeting of the Fed-whether the central bank changes rates or not-triggers a chorus of instant analysis of what it means for the economy and the financial markets. Which function of the Federal Reserve is the subject of this passage? Correct C ) regulating the money supply The Fed remains largely independent from politics for all of the following reasons EXCEPT Correct D ) the president and Congress appoint new members to vacant seats on the Board of Governors. he dilemma faced by the Fed when considering monetary policy is the choice between Correct A ) inflation and interest rates.Based on this quotation: â€Å"Not too many years ago, Federal Reserve officials conducted monetary policy as if they were members of the Politburo plotting behind the thick walls of the Kremlin. † the author believed that the Federal Reserve had been too Correct D ) secretive. When command economies make the transition to capitalism, they face all of th e following challenges except Correct A ) the Gosplan. Correct B ) debts and obligations. The Fed has defined different categories of money, M1 and M2, according to the money's Correct B ) function. Repeated short-run attempts to keep interest rates low result in a _________ of the money supply, making inflation _________. Correct A ) long-term expansion, worse e FED has defined M2 as Correct A ) represents the components of the money supply that most closely conform to money's role as a. store of value. Which letter designations mark Fed actions that will expand the money supply? Correct B ) Lower reserve requirement, Buy bonds, Lower discount rate. The ___________ is the interest the Fed charges on loans to financial institutions. Correct D ) discount rate Assets are Correct A ) properties, possessions, and claims on others. n the long run, changes in the supply of money affect the ____________. Correct C ) general level of prices Which letter designations mark Fed actions that wi ll contract the money supply? CorrectC ) Raise reserve requirement, Sell bonds, Raise discount rate For a bank to be profitable, how much of a spread must it maintain between the rate it charges on loans and the rate it pays for borrowed funds? Correct B ) 2-3 percent A balance sheet shows all of the following EXCEPT Correct A ) bank assets on the right of the T account. All of the following are tools of monetary policy EXCEPT Correct C ) tight money controls. The dilemma faced by the Fed when considering monetary policy is the choice between Correct A ) inflation and interest rates. The price of credit is the ______. Correct A ) rate of interest At times the Fed monetizes the debt in order to CorrectB ) keep interest rates from rising. In the short run, monetary policy affects Correct C ) interest rates and available credit. The social costs of economic instability include all of the following EXCEPT Correct A ) stagflation. Those who favor supply-side policies would tend to suppor t the government playing Correct B ) a reduced role in the economy. Monetarism is described as Correct D ) emphasis on the role of money and its growth as a key to controlling inflation and unemployment. Deregulation is most closely associated with Correct D ) supply-side economics. Economic instability wastes all of the following EXCEPT Correct C ) tax revenues.According to John Maynard Keynes's theory of the multiplier-accelerator effect, a decline in investment spending will Correct B ) lead to a downward spiral of the economy. ____________ policies are federal policies designed to increase or decrease total demand in the economy by shifting the aggregate demand curve to the right or to the left. Correct D ) Demand-side Aggregate demand will increase Correct D ) if consumers save less and spend more. Unlike demand-side economics, supply-side economics Correct A ) advocates reduced government involvement in business. The unofficial statistic that is the sum of monthly inflation an d the unemployment rate; same as discomfort index is Correct B ) misery indexAccording to Keynesian economics, only the _________ sector is big enough to step in and offset changes in investment sector spending. Correct B ) consumer The ____________ is the sum of the monthly inflation and unemployment rates. Correct A ) misery index Which is an example of the uncertainty caused by economic instability? Correct B ) A consumer delays a purchase. Social costs are Correct D ) price of economic instability in human terms. The _____________ like unemployment insurance and Social Security protect consumers and the economy in general if economic conditions worsen. Correct A ) automatic stabilizers Which of the following statements is FALSE? Correct B ) Economic instability is at the root of all social problems. John Maynard Keynes CorrectD ) introduced his theories in 1936. The social costs of economic instability include all of the following EXCEPT Correct A ) stagflation. Economists measu re the cost of economic instability with Correct D ) both a and b Wage price controls are Correct B ) regulations making it illegal for businesses to give workers raises or to raise prices without the explicit permission of the government. Stagflation is ________. Correct B ) period of stagnant growth combined with inflation The use of government spending and taxing to influence economic activity is called _ Correct B ) fiscal A period of stagnant growth combined with inflation is known as ____________. CorrectB ) stagnation The basis for international trade stems from Correct B ) the differences in production costs from one country to another. The Council of Economic Advisers Correct C ) advises the president on economic developments and strategy. The three-member group that reports on economic developments and proposes strategies to the president is called the Correct A ) Council of Economic Advisers. Which is the best description of the role of the Council of Economic Advisers? C orrect A ) report economic developments and propose strategies The nation's monetary policy Correct A ) often comes under attack from politicians. The United States imports CorrectC ) billions of dollars in products each year. Which of the following is proof that international trade is beneficial? Correct C ) the fact that free nations choose to trade vThe three-member group that reports on economic developments to the president is called the Correct B ) Council of Economic Advisers. A country has a(n) ___________ whenever it is able to produce more of a given product than another. Correct A ) absolute advantage ____________ economic policies grew out of the unemployment and other problems that occurred during the Great Depression of the 1930's. Correct D ) Demand-side All of the following describe economists EXCEPT CorrectB ) economists are sharply divided into competing schools of thought with little overlap of ideas and beliefs. If a country wants to trade a product with another country, it must have a(n) ___________ in the production of that product. Correct D ) comparative advantage Alpha can produce either 10 apples or 3 oranges. Beta can produce either 12 apples or 3 oranges. Correct C ) Beta has an absolute advantage in the production of apples. Imports are Correct B ) goods and services that one country buys from other countries. The ability of a country to produce a product with greater output per unit of input is Correct A ) absolute advantage. . A country has a comparative advantage when it can

What Was the Main Cause of the Financial Crisis in 2007-2009?

The intention of this essay is to provide an in depth and critical analysis of the financial crisis that took place between 2007-2009, in particular focusing on some key issues raised by the Foote, Gerardi and Willen paper ‘Why did so many people make so many Ex Post bad decisions? ’ Whilst there were many contributing factors, it is clear that a specific few played a particularly dominant role, primarily the ‘Bubble Theory’, irresponsible regulation, toxic CDO’s and $62 trillion of CDS’s. ‘That’s what bubbles are: they’re examples of mass delusions’ (Norcera, 2011).Bubble theory’s are by no means a new school of thought, in fact they date back to the Dutch Tulip bubble in the 1630’s and it is these types of bubble that are believed, by many economists, to be the primary cause of the foreclosure crisis. The bubble theory explains the crisis as a natural progression of overly optimistic price expectations for a particular asset class, recently the US housing market. When the housing bubble began to enlarge, lenders were lulled into a false sense of security, which lead to large amounts of credit being extended to ‘sub prime’ borrowers, people who had shady or uncertified credit history.However due to the inflating house prices the banks seemed to have little concern towards the credit being repaid. Although this credit was issued to subprime borrowers through the securitised credit market, securitisation was not necessarily the definitive cause of the crisis, but what it did was act as a catalyst allowing borrowers and investors to undertake their desired transactions. With this appetite for risk from lenders and interest rates being cut to 1% by the Fed, institutional investors were eager to chase higher returns.The opportunity encouraged investment banks to anti up their leverage and create a higher yielding product which was directly linked to an ‘ever rising h ousing market’. The emergence of Special Purpose Vehicles (SPV’s) allowed banks to over leverage and buy mortgages which were then bundled together into a special purpose vehicle, proportions of these were then subsequently sold off as a Collateralised Debt obligations (CDO’s), ‘an investment-grade security backed by a pool of bonds, loans and other assets’. The theory behind this SPV was to reduce the lenders liability by pooling hundreds of supposedly ndependent mortgages, meaning that in the event of any mortgage defaults the loss would be contained rather than having a simultaneous effect on the other mortgages pooled within the CDO. Given that house prices were expected to continue along the bubble’s growth path, any losses from mortgage defaults would be naturally offset by house price inflation, or so they thought. Once the Investment banks had packaged these mortgages they then sought to diversify their liability by selling off the mu tual funds to external investors, some more bullish than others and hence the segregation of tranches within the CDO packages.The riskiness of each tranche was determined by the rating agencies, Standard and Poor/Fitch, which ranged from AAA (the lowest risk, but highest price) to CCC (the highest risk, but lowest price). In the event of any mortgage defaults, the highest rated tranche, the senior tranche, was paid out first and any subsequent losses were absorbed by the junior tranches, ie junior tranches were only paid once the other tranches had been paid. Given that the Fed had cut interest rates to 1%, the opportunity proposed by these CDO’s became increasingly more attractive.The excessive demand chasing CDO’s forced banks to lower their credit requirement standard, which inevitably lead to subprime lending. This access to the credit markets for those who ordinarily would have been declined credit meant that CDO’s were becoming filled with comparatively hi gh risk mortgages. This became increasingly problematic when borrowers began to default on their mortgage payments, the domino effect lead to the collapse of house prices and over 2million foreclosures.This left worldwide investors and banks with failing CDO’s who in turn also defaulted on their payments and lead to a global ‘credit crunch’. Even the largest of investment banks such as Goldman Sachs and Morgan Stanley were so confident in their products that they too maintained large holdings of ‘super senior’ tranches on their balance sheets, thus wiping billions of dollars of their balance sheets too. However whilst it is true that the bankers over zealous nature and thirst to maximise profits lead to the breaching of standards and forfeit of reliable credit checks, they were still allowed to do it.This leads to the plausible involvement of the credit rating agencies and the Governments lack of regulation and in some cases irresponsible regulation. A major concern surrounds the actions of US credit rating agencies, namely Standard & Poor and Fitch. Whilst they may not have anticipated the financial crisis, they, to a large extend suffered from institutional failure. The mathematical models that had been developed and used by the credit rating agencies were inadequate to deal with and provide accurate data concerning the riskiness of sub prime mortgages.The mathematical modelling teams continued to use traditional out-dated 30 year mortgages to asses the likelihood of default. Mortgages issued after 2004 were based on a different credit rating tool, know as FICO. A FICO score takes into account 5 factors to help determine a borrowers credit risk, length of credit history and the various types of credit used, the current level of personal debt, credit history, amount of new credit and passed payment history.These new mortgages were typically non documented adjustable rate mortgages and relied on the FICO score. It became appare nt that the agencies had minimal concern towards the investors. The rating analysts within the agencies expressed their levels of apprehension towards the reliability of certain ratings, but they were cut short and dismissed. The credit rating agencies were simply concerned with maintaining or increasing their market influence by doing their job and providing the ratings that their clients employed them to generate.In many cases these ratings were later downgraded within 6 months implying that their original job was either done with a lack of due diligence or there was an ulterior motive behind providing a flawless AAA rating. This was highlighted in the residential mortgage backed security Delphinus case study where 26 dummy loans were issued that were clearly not of AAA standard, yet sailed through as AAA. This leads us to the issue of the Government and their irresponsible lack of regulation towards preventing a financial crisis.The neoliberalist argument suggests that the US Gov ernment was a big player in the demise of the financial sector. The Governments irresponsible regulation of banks allowed the passing of the Community Reinvestment Act from 1977, ‘the law was designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low and moderate income neighbourhoods’ (Wikipedia). The law actively encouraged low income earners to take out mortgages to buy a house, which in reality they could not afford.To really tempt fate congress later allowed the act to be amended, allowing potential borrowers to opt out of income screening, therefore meaning that no credit worthiness was required to take out a mortgage. It is this link to the CDO market which allowed for such disaster to unravel, had this act not been so irresponsibly been amended, the banks would not have been able to bundle toxic debt and sell it as a repackaged CDO. In fact George Bush Junior actively en couraged it in 2002 when he campaigned for an additional 5. 5million low income homeowners by 2010.By actively holding interest rates below the well-known monetary guide lines it encouraged mass risk taking, not only was money cheap but low interest rates also offered very little return in the banks so investors sought alternatives which lead them to junk CDO’s and CDO2’s. However these junk CDO’s were only half the problem, whilst they were being actively encouraged they were also being bet on and against, implying a magnitude of leveraged risk. In the 1990’s J. P. Morgan developed a strategy to hedge their loan risks know as credit default swaps (CDS’s).Essentially a CDS is a bilateral contract between two parties that provides a level of insurance. A buyer would pay a yearly premium in order to protect the face amount of the particular bond or loan, but the CDS’s unlike a traditional insurance policy were subject to counter party risk onl y. This implication meant that if the counterparty was unable to pay or had gone insolvent then essentially the buyer was no longer covered. What it also allowed for was speculators to gain exposure to markets where they didn’t actually own the underlying assets or credits, which they were now betting on.The crux of the problem arose when CDS’s were taken out on the subprime mortgage securities, which had been largely over rated by the ratings agencies, therefore providing false information upon which the investment decision and insurance policies were taken. When the defaults started to roll in the likes of AIG and Bear Stearns had billions of dollars wiped off their books. To exacerbate the problem almost all the major investment banks and investment houses had insurance underwritten by Bear Stearns, which of course was now insolvent. This domino effect lead to multi billion dollar losses across the globe.The general belief amongst economists was that financial deriv atives and their purpose was to dilute individual risk through risk sharing amid investors. In theory it should create a more efficient allocation of capital and price transparency, it is the mass trading of these derivatives that became problematic and raised a cause for concern. However whilst it is true that CDS’s, CDO’s, a vast lack of regulation and inaccurate credit ratings all facilitated the collapse in the financial sector, it is not clear that they were the actual cause of the financial crisis.What is more evident of the actual cause is the fact that financial institutions and investors, as a whole did not foresee a collapse of housing prices. The collapse of house prices created mass negative equity and consequent defaults on subprime mortgages and also the falling face value of the subprime mortgage securitisations. Investment banks were particularly caught by surprise when the ‘super superior’ AAA rated tranches of CDO’s collapsed in va lue, given that they had relatively few defaults.Another factor which points to the root cause of the financial crises was the levels of excessive leverage combined with large holdings of subprime securitisations. The rapid and unexpected losses from these large investment houses lead to the markets questioning their solvency and so a mass culture of hoarding developed along with a fire sale of assets in order to deleverage their exposure. All this combined resulted in a squeeze of cash flow due to market uncertainty and lenders became unwilling to lend. This unfolding of events lead to the CDS and CDO market getting wrapped up and associated with large losses.It is for these reasons that the financial crisis developed and continues to develop implications for the future of the financial industry. References Nocera, Joe. 2011. â€Å"Inquiry is Missing Bottom Line. † New York Times, page B1. January 29 Journal of Economic Perspectives—Volume 24, Number 1—Winter 2 010—Pages 73–92 Credit Default Swaps and the Credit Crisis Rene M. Stulz Cordell, Larry, Yilin Huang, and Meredith Williams. 2011. â€Å"Collateral Damage: Siz- ing and Assessing the Subprime CDO Crisis. † Federal Reserve Bank of Philadelphia Working Paper Money morningFinancial Crisis Inquiry Commission. 2010. â€Å"Credit Ratings And the Financial Crisis. † Pre- liminary Staff Report, June 2, 2010 The Credit Rating Agencies and TheirContribution to the Financial Crisis MAUR ICE MULLARD http://www. investopedia. com/terms/c/cdo. asp#ixzz2BqfZ28TI Brunnermeier, Markus K. 2008. â€Å"Bubbles. † In The New Palgrave Dictionary of Eco- nomics, eds. Steven N. Durlauf and Lawrence E. Blume, second edition Foote, Christopher L. , Kristopher Gerardi, and Paul S. Willen. 2008. â€Å"Negative Equity and Foreclosure: Theory and Evidence. †

Business Psychology Essay

In this era of globalization, every organization must design its own strategy in terms of running its business at excellent level to survive and stay in competition. Trigger factors of higher demands that addressed to organizations are; emergence of free market which means that competitors are not only from the local market but also come from organizations all over the world, technological advances that developed rapidly over time also has role in higher demands that has been exposed to organizations in determining that everyone inside the organization must be compatible with the rapid development of technological advances at their workplace. Intense competition environment as already mentioned above certainly lead to tendencies for organizations in emerging innovations, creativities, enhancement of added value, service excellences, competitive prices and acceleration of process business plot as an objective to be â€Å"the winner† in competing with other organizations. A paradigm shifting in the design of the organizational strategies is necessary to be developed by organizations in order to survive in spite of the free market enforcement. One of the strategies that can be applied is building an effective team in the organization, the transformation in working method from individual to team work as the main focus must bring psychological effects for every individual in the organization. Every member in the organization is forced to be part of their team, regardless to their preference to work as individual or as a team. This phenomenon also brings the â€Å"domino effect†; each member in the organization will be evaluated not only for their field competencies related to their job performance, but also personal competencies related to perform effectively as a team member (team work competencies) will be evaluated by the organization. In the realization  of forming an effective team, more than one strategy related to competencies in team building, which are parts of the business psychology area, must be combined in a synchronous way. Business psychology can be use as a source in designing and implementing an organizational strategy, especially for the accentuation in understanding individual behavior and self improvement basis when they are put and work together in a team. There some business psychology focuses that can be used in designing a strategy which at the end also can be used as references in building personal competencies needed in order to perform as an effective team. These are the beneficial focuses: 1. Perception and personal reality Every individual has cognitive limitation in responding to information that they received, as a result of that phenomenon, they are forced to pick information selectively regarding to which received information associated as valuable and which is invaluable, which data that will be taken to the next level of information process. Related to selectivity process, individual tend to use heuristic process, an information processing which characterized by incomplete usage of given data, only based on general issues and experiences, and all those information processed quickly. This information processing form has potential in bringing biases, misunderstanding, and inaccurate result in processing information. Based on the implementation of information processing above, in interacting with other individual, stereotypes and expectations emerged. Stereotyping is a judgment processing of someone that made only based on perceptions to the group where they can be categorized. Expectations from each individual not always positively responded by the other party where they are interacting with each other. Expectations also correlate with communication styles that will be used in interactions. 2. Team ship In building an effective team, many approaches must be used and collaborated in a synchronous way. Defining roles in each team member is an important aspect for balancing the roles of team members in order to optimize the team’s outcomes and coherence. One of the models that can be used in describing team roles in details is â€Å"team roles model† by Belbin : An effective team, in the process basis is characterized by these indication processes; active listening, sharing leadership, taking turn-not interrupting, positive reframing, rescuing eac other’s views, spontaneous and open praise and elaboration of ongoing ideas. In terms of their task performance, an effective team is characterized by these indication processes; analyzing, focus on results, reflecting, open rejection-goal oriented, open rejection-based on data, seeking opinion, seeking clarification and closure. There are some important key behavior in an effective team, such as: open communication, mutual respect, shared output responsibility, agreement through consensus, active disagreement, clear individual responsibilities and roles, subordinate own goals to group objectives, engender high team morale, receptive to new ideas and change, and constructive and supported feedback. There are two applicable models that can be useful in order to design the strategy for establishing an effective team, and they are: Jungian model and Tjosvold model. a. Jungian Model b. The Ideal Team System by Tjosvold Sharing organizational expectations, business strategies and visions, core  values, organizational cultures and organizational objectives, can be defined as envisioning. Showing interest about team member’s visions, task clearances, valuing intercultural differences, and transferring the idea of the team ship’s paradigm importance are efforts in uniting the team. Bringing out loyalties, responsibilities, knowing potential of team members and assigning them based on that, and motivate them when they need motivation are characteristics in the empowering step. After being empowered, exploration in discovering problems and focusing on finding solutions can be established, diversities can be managed in finding the best solution, and all that will raise the team’s awareness to the importance of learning over time to have the upper hand in the market competition. After the best solution is reached, reflecting what the team has been through at every step of the cycle above can be very important as the source of any plan or step that needs to be revised on the next period in order to perform as an effective team. 3. Conflict resolution There are some causes of conflicts that usually appear in organizations: competition, scarcity of resources, interdependence/dependency, conflict in objectives and tasks, differences of opinion and of influence, differences in status, cultural differences, change, misperception, miscommunication, different ways of seeing things, personal preferences, pace of response, range of response and form of response, individual differences and emotional defenses. Traditionally, from all causes of conflicts that mentioned above, individual differences and emotional defenses are the main issues in organizations. In dealing with conflicts, there are three natural reactions that are usually expected from the individuals involved: striking back (leads to escalation, potentially damaging the relationship), giving in (usually results in poor outcome, can be seen as rewarding bad behavior), and breaking off (sometimes can be beneficial, often very costly, hasty and regretted). Regarding to conflict resolution, application of negotiation competencies can be very useful. There are five stages in negotiation process; orientation, position taking, search for solutions, crisis/deadlock, settlement and finalization. It is important to each team member to identify their position in those stages that are related in optimizing conflict resolution process. By knowing and sharing their each position, they can build the same perceptions in finding the best conflict resolution scheme. Principled approach is a combined technique in negotiation from soft and hard style of positional bargaining. In this approach, participants are problem solvers, the goal is a wise outcome reached amicably and efficiently, people and the problem must be separated, must be soft on the people and hard on the problem, independent of trust is proceed, the focus is on interests not the positions, interests are being explored, having a bottom line is avoided, options for mutual gain are invented, multiple options are developed, the use of objective criteria is insisted, a result is reached based on standards independent of will, there is tendency to be open to reasons and yield to principle, not pressure. Conflicts can lead to project delays, missed market opportunities, confused communication, inconsistent information, teams fail and difficult to retain good staff. Considering the effects of unresolved conflict, there are three category : first order effects (quantifiable) can be counted by employee replacement cost, including termination costs and recruitment, second order effects (harder to quantify) which can be observed by increased supervision or management activities , and third order effect (impossible to quantify) when its already revealed in passive aggressive behaviors. Look more:  problem focused coping essay There are two types of conflict; task focused, which is characterized by differences of views and opinions, based on facts and reasoning, and related to intellectual matters. The other type is relationship focused conflict, characterized by anchored in personal differences, influenced by history/assumptions, and related to feelings and emotions. There is a model by Thomas Kilmann which explained deliberately about correlation between  assertiveness and cooperativeness in dealing with conflict. 4. Decision making There are two types of decision making process that people tend to implement, they are: width (diverging) and depth (converging). Diverging type is characterized by some points; seeking options/strategies, works with multiple perspectives, requires more options, considering new ideas, combining options/lateral ideas, and creative suggestions. On the other hand, converging type is characterized by: seeking consensus, seeking clarification, seeking structure, review based on new information, analytical, making inferences, assess consequences based on data, strong defense of viewpoint, clear decisions and outcomes. The usage of both types can be based on the situation that the decision making processes is taking place in the organization. Combination of width and depth are expected and can be the best option in decision making process.

Comparison between Manual Gear and Automatic Gear Research Paper

Comparison between Manual Gear and Automatic Gear - Research Paper Example Such a transmission is made up of a series of gears that are used to produce the rotational force needed to turn the wheels of the vehicle. The transmission unit of a car which is commonly called a gear box has gears which transfer power form the engine of the car to its wheels. The transmission has to be equipped with multiple gears in that the car operates on the proper gear in different situations. The gearboxes are of multiple types with the difference being the determinant factor of how a car will operate. There are two main types of gears; manual gear and automatic gears. Modern cars have been equipped with two major transmission options, namely; manual or automatic transmission. There exist a number of differences between these transmission types with regards to their components, how they operate, the advantages and disadvantages associated with them and their applications. This paper is going to look at the differences evident between automatic transmission and manual transmission. A manual gearbox type is a car transmission which permits the driver to choose gears as he or she wishes with the use of a stick shift. For the driver to select the desired gear, the clutch pedal has to be depressed making it unique to cars with manual transmission (Zheng W. Chung et al 2007). This move disengages the gearbox disconnecting it from the engine. Once the desired gear has been chosen through having the shifter moved to the correct position, the clutch is now free and can be released. This action reconnects the gearbox and the engine. Manual transmission can be classified into two types; the constant-mesh type and the sliding-gear design. In the sliding gear design, its main parts are the cluster and drive gear. On each gear is a dog clutch fitted with a hub, a shaft and an outer ring (Zheng W. Chung et al 2007). Synchronizers are also fitted to prevent clashing of the gears. The hub mainly splines the drive gears while