Prospects, theories and other great shit

Question 1

Money

Answer 1

is used to count

Question 2

Interest

Answer 2

is the price of money

Question 3

National bank

Answer 3

regulates the amount of money

Question 4

Phases of money creation

Answer 4

1: you have money, a part you invest and the other part you keep as liquidity
2: invested corporation pays workers and they bring it to the bank
3: invest again

Question 5

T reserve rate

Answer 5

percent of reserved money (liquidity)

x/t is the amount of money

Question 6

created money

Answer 6

x + (x - t) + (x - t)2 + ….

Question 7

free float

Answer 7

no fixed price on things

Question 8

The cause of inflation

Answer 8

people don’t trust

Question 9

conditions for money

Answer 9

Accaptence as money by everyone
Durability
Devideability
Intrinsic value

Question 10

Risk

Answer 10

is the potential of gaining or losing something of value.

Question 11

Sig Sigma

Answer 11

Find the cause of defects and mistakes and remove or solve them

Question 12

Prospect theory

Answer 12

irrational choices; we have biases like base rate neglect and the conjunction rule

Question 13

nudges

Answer 13

Reinforcement
punishment heigten accesibility
or education

Question 14

Paternalism

Answer 14

the choice architetecture work to make peoples lives better. People with more knowledge

Question 15

Libertarianism

Answer 15

the choice architects create conditions without forcing people, to make them choose themselves: nudge e.g.

Question 16

Exponential discounting

Answer 16

Samuelson.

Question 17

Exponential discounting

Answer 17

Samuelson.

Question 18

Anchoring bias

Answer 18

to rely too heavily on the first piece of information offered.

Question 19

Rational choice theory

Answer 19

assumes people maximize advantages and minimize losses, contradictory to the Bound

Question 20

Bound rationality

Answer 20

assumes people are limited by cognititive, we dont seek to maximize benefits, we look for satisficying shit.

Question 21

Management by objective

Answer 21

Drucker:
ROCME

organisational objectives
Cascade to employees
Monitor
evaluate
reward; beginning