3. In business, ethical dilemmas or situations occur frequently. Laws and regulations exist to define what unethical behavior is. However, the practicing of high-quality ethical behavior often goes beyond just meeting laws and regulations. Indicate how you would respond to the following situations.
a. Your boss has just told you that tomorrow the Federal Drug Administration will announce its approval of your firm’s marketing of a new breakthrough drug. As a result of this information, you are considering purchasing shares of stock in your firm this afternoon. What would you do?
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b. In the past, your firm has been in compliance with regulatory standards relating to product safety. However, you have heard through the company grapevine that recently some of
your firm’s products have failed resulting in injuries to customers. You are considering quitting your job due to personal moral concerns. What would you do?
- Chapter 2: P2 and P5
Problem 2. Determine the size of the M1 money supply using the following information.
Currency $700 billion
Money market mutual funds $2,000 billion
Demand deposits $300 billion
Other checkable deposits $300 billion
Traveler’s checks $10 billion
Problem 5. The following information is available to you: travelers’ checks = $1 million; coin and paper currency = $30 million; repurchase agreements and Eurodollars = $15 million; demand deposits = $25 million; retail money market mutual funds = $60 million; savings accounts at depository institutions = $40 million; checkable deposits at depository institutions = $35 million; large-denomination time deposits = $50 million; institutional money market mutual funds = $65 million; and small-denomination time deposits = $45 million. Using Fed definitions, determine the dollar sizes of the
a.M1 money supply
b.M2 money supply
c.M3 money supply