FinEcon
Hello everyone!
Which subject interests you the most? Based on that, we will share posts, interesting graphs, and quizzes))
Which subject interests you the most? Based on that, we will share posts, interesting graphs, and quizzes))
I will close the poll tomorrow at 10:33 KST.
We will pick top 3 and we will share information, quizzes, charts on those topics.
I am also surprised there are people who have chosen Quant.
I really love learning about Quant since it is Financial statistics and Finance itself becoming more and more quantitative since 1990s.
@fineconim
We will pick top 3 and we will share information, quizzes, charts on those topics.
I am also surprised there are people who have chosen Quant.
I really love learning about Quant since it is Financial statistics and Finance itself becoming more and more quantitative since 1990s.
@fineconim
These are the books that we are planning to use as go-to-guide.
However, for Financial Accounting we will use ACCA FA textbook by Kaplan.
Although I have not passed ACCA FA and CFA yet, I have finished studying Financial accounting from CFA and ACCA textbooks and I can say that in terms of Financial statement analysis, CFA level I FSA book is much in depth while ACCA FA can be a good resource for Financial accounting itself than statement analysis.
@fineconim
However, for Financial Accounting we will use ACCA FA textbook by Kaplan.
Although I have not passed ACCA FA and CFA yet, I have finished studying Financial accounting from CFA and ACCA textbooks and I can say that in terms of Financial statement analysis, CFA level I FSA book is much in depth while ACCA FA can be a good resource for Financial accounting itself than statement analysis.
@fineconim
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FinEcon
Hello everyone!
Which subject interests you the most? Based on that, we will share posts, interesting graphs, and quizzes))
Which subject interests you the most? Based on that, we will share posts, interesting graphs, and quizzes))
Poll has been closed and thanks for those who voted!
1. Economics
2. Financial accounting
3. Corporate Finance and Portfolio management
Honesty, I am surprised to see PM on the list))
Also, it is really interesting to see that there are people who want to learn about Financial derivatives too.
I thought derivatives were not something that people want to get into. I have been wrong.
Anyways, let's start our journey!
@fineconim
1. Economics
2. Financial accounting
3. Corporate Finance and Portfolio management
Honesty, I am surprised to see PM on the list))
Also, it is really interesting to see that there are people who want to learn about Financial derivatives too.
I thought derivatives were not something that people want to get into. I have been wrong.
Anyways, let's start our journey!
@fineconim
Just to get to know your expertise,
Have you ever finished at least one textbook/course (except university lectures) regarding above subjects?
Have you ever finished at least one textbook/course (except university lectures) regarding above subjects?
Anonymous Poll
45%
Yes
55%
No
FinEcon
We are excited to have our first speaker. Sanjarbek Matyokubov, KPMG intern and holder of 9 ACCA papers! We will talk about ACCA, and career in finance. Date: 16:00 (Tashkent time), Sunday April 27th Listeners can ask questions during the talk. Share…
Our interview is rescheduled to the same day but from 16:00 to 19:00.
Thanks for your understanding.
Also, in comments below 👇 please send the questions that you want to ask.
Thanks for your understanding.
Also, in comments below 👇 please send the questions that you want to ask.
GDP
The measure of aggregate output in the national income accounts is called the gross domestic product, or GDP, for short. To understand how GDP is constructed, it is best to work with a simple example.
Consider an economy composed of just two
firms:
Firm 1 produces steel, employing workers and using machines to produce the steel. It sells the steel for $100 to Firm 2, which produces cars. Firm 1 pays its workers $80, leaving $20 in profit to the firm.
Firm 2 buys the steel and uses it, together with workers and machines, to produce cars. Revenues from car sales are $200. Of the $200, $100 goes to pay for steel and $70 goes to workers in the firm, leaving $30 in profit to the firm.
How would you define aggregate output in this economy? As the sum of the values of all goods produced in the economy—the sum of $100 from the production of steel and $200 from the production of cars, so $300? Or as just the value of cars, which is equal to $200?
Some thought suggests that the right answer must be $200. Why? Because steel is an intermediate good: It is used in the production of cars. Once we count the production of cars, we do not want to count the production of the goods that went into the production of these cars.
This motivates the first definition of GDP:
GDP is the Value of the Final Goods and Services Produced in the Economy during a Given Period.
@fineconim
The measure of aggregate output in the national income accounts is called the gross domestic product, or GDP, for short. To understand how GDP is constructed, it is best to work with a simple example.
Consider an economy composed of just two
firms:
Firm 1 produces steel, employing workers and using machines to produce the steel. It sells the steel for $100 to Firm 2, which produces cars. Firm 1 pays its workers $80, leaving $20 in profit to the firm.
Firm 2 buys the steel and uses it, together with workers and machines, to produce cars. Revenues from car sales are $200. Of the $200, $100 goes to pay for steel and $70 goes to workers in the firm, leaving $30 in profit to the firm.
How would you define aggregate output in this economy? As the sum of the values of all goods produced in the economy—the sum of $100 from the production of steel and $200 from the production of cars, so $300? Or as just the value of cars, which is equal to $200?
Some thought suggests that the right answer must be $200. Why? Because steel is an intermediate good: It is used in the production of cars. Once we count the production of cars, we do not want to count the production of the goods that went into the production of these cars.
This motivates the first definition of GDP:
GDP is the Value of the Final Goods and Services Produced in the Economy during a Given Period.
@fineconim
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How to pass ACCA
FinEcon
About KPMG and job application, ACCA study tips by Sanjarbek, 9 ACCA paper holder and KPMG intern
#interview
@fineconim
#interview
@fineconim
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- There is a large number of independent sellers.
- Each produces a differentiated product.
- There are low barriers to entry. - Producers face downward-sloping demand curves. - Demand is highly elastic. This market is best characterized as:
- Each produces a differentiated product.
- There are low barriers to entry. - Producers face downward-sloping demand curves. - Demand is highly elastic. This market is best characterized as:
Anonymous Quiz
10%
a monopoly.
42%
an oligopoly.
48%
monopolistic competition.
Today, most rich countries rely on large surveys of households to compute the unemployment rate. In the United States, this survey is called the Current Population Survey (CPS). It relies on interviews of 60,000 households every month.
The survey classifies a person as employed if he or she has a job at the time of the interview; it classifies a person as unemployed if he or she does not have a job and has been looking for a job in the last four weeks.
Note that only those looking for a job are counted as unemployed; those who do not have a job and are not looking for one are counted as not in the labor force. When unemployment is high, some of the unemployed give up looking for a job and therefore are no longer counted as unemployed. These people are known as discouraged workers.
@fineconim
The survey classifies a person as employed if he or she has a job at the time of the interview; it classifies a person as unemployed if he or she does not have a job and has been looking for a job in the last four weeks.
Note that only those looking for a job are counted as unemployed; those who do not have a job and are not looking for one are counted as not in the labor force. When unemployment is high, some of the unemployed give up looking for a job and therefore are no longer counted as unemployed. These people are known as discouraged workers.
@fineconim
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Economy producing at its full-employment level of output. Price level stable. Businesses then begin experiencing unintended decreases in their inventory levels. What does this imply about the short-run outlook for economic growth and inflation?
Anonymous Quiz
42%
Economic growth: Increasing, Inflation: Increasing
35%
Economic growth: Increasing, Inflation: Decreasing
23%
Economic growth: Decreasing, Inflation: Increasing
Basically, you can think about aggregate output— GDP—in three different but equivalent ways:
▪️From the production side: GDP equals the value of the final goods and services produced in the economy during a given period.
▪️Also from the production side: GDP is the sum of value added in the economy during a given period.
▪️From the income side: GDP is the sum of incomes in the economy during a given period.
Nominal vs Real GDP
Nominal GDP is the sum of the quantities of final goods produced times their current price. So, Nominal GDP rises due to an increase in production and prices.
Real GDP is constructed as the sum of the quantities of final goods times constant (rather than current) prices in chosen base year so we measure change in quantity than in prices.
Nominal GDP is also called dollar GDP or GDP in current dollars.
Real GDP is also called: GDP in terms of goods, GDP in constant dollars, GDP adjusted for inflation, or GDP in chained (2009) dollars or GDP in 2009 dollars —if the year in which real GDP is set equal to nominal GDP is 2009, as is the case in the United States at this time.
@fineconim
▪️From the production side: GDP equals the value of the final goods and services produced in the economy during a given period.
▪️Also from the production side: GDP is the sum of value added in the economy during a given period.
▪️From the income side: GDP is the sum of incomes in the economy during a given period.
Nominal vs Real GDP
Nominal GDP is the sum of the quantities of final goods produced times their current price. So, Nominal GDP rises due to an increase in production and prices.
Real GDP is constructed as the sum of the quantities of final goods times constant (rather than current) prices in chosen base year so we measure change in quantity than in prices.
Nominal GDP is also called dollar GDP or GDP in current dollars.
Real GDP is also called: GDP in terms of goods, GDP in constant dollars, GDP adjusted for inflation, or GDP in chained (2009) dollars or GDP in 2009 dollars —if the year in which real GDP is set equal to nominal GDP is 2009, as is the case in the United States at this time.
@fineconim
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Unemployment and Happiness
The effect of unemployment on happiness defined in this way is shown in Figure 1. The figure plots the average life satisfaction for those individuals who were unemployed. Years -1 to -4 are the
years before unemployment, years 1 to 4 the years after.
The figure suggests three conclusions. The first and main one is indeed that becoming unemployed leads to a large decrease in happiness. To give you a sense of scale, other studies suggest that this decrease in happiness is close to the decrease triggered by a divorce or a separation.
The second is that happiness declines before the actual unemployment spell. This suggests that either workers know they are more likely to become unemployed, or that they like their job less and less.
The third is that happiness does not fully recover even four years after the unemployment spell.
This suggests that unemployment may do some permanent damage, either because of the experience of unemployment itself, or because the new job is not as satisfying as the old one.
@fineconim
The effect of unemployment on happiness defined in this way is shown in Figure 1. The figure plots the average life satisfaction for those individuals who were unemployed. Years -1 to -4 are the
years before unemployment, years 1 to 4 the years after.
The figure suggests three conclusions. The first and main one is indeed that becoming unemployed leads to a large decrease in happiness. To give you a sense of scale, other studies suggest that this decrease in happiness is close to the decrease triggered by a divorce or a separation.
The second is that happiness declines before the actual unemployment spell. This suggests that either workers know they are more likely to become unemployed, or that they like their job less and less.
The third is that happiness does not fully recover even four years after the unemployment spell.
This suggests that unemployment may do some permanent damage, either because of the experience of unemployment itself, or because the new job is not as satisfying as the old one.
@fineconim
❤1
Okun`s Law
If output growth is high, unemployment will decrease, and this is indeed true. This relation was first examined by U.S. economist Arthur Okun and for this reason has become known as Okun’s law. Figure 2-5 plots the change in the unemployment rate on the vertical axis against the rate of growth of output on the horizontal axis for the United States since 1960.
@fineconim
If output growth is high, unemployment will decrease, and this is indeed true. This relation was first examined by U.S. economist Arthur Okun and for this reason has become known as Okun’s law. Figure 2-5 plots the change in the unemployment rate on the vertical axis against the rate of growth of output on the horizontal axis for the United States since 1960.
@fineconim
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We are having our next speaker, Bekhruz Akhmedov, experienced economist and founder of Finance Pro.
We will talk about general concepts related to econ and financial literacy.
Date: 19:00, Sunday, May 18th (Asia/Tashkent)
Share with you friends))
@fineconim
We will talk about general concepts related to econ and financial literacy.
Date: 19:00, Sunday, May 18th (Asia/Tashkent)
Share with you friends))
@fineconim
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