Answer the following questions and do not forget to attach your answer on or before the

deadline.
1) Why study money, banking, and financial markets?
- In this fast pacing generation, business is like the fastest sector in our community to
innovate. From the simplest things that we need, to our daily wants and necessities, we
are in need of money to be able to attain these. I personally believe that there is a need for
us to study and equip ourselves with how money works, how their value changes and as
to how we could make us of it as investments. Banking on the other hand, is one of the
major institutions needed in a country for it to attract investors. It is important to study
banking for us to be fully aware of what could possibly happen if ever we are to engage
ourselves with investments in banks or even through savings. It was said that a much
better and safe place to invest is through putting your money up in the bank since it is
obviously more secured. However, there are also big risk in putting your money in the
bank that is why we must have enough knowledge or background as to what could be the
possible risk in investing so. Financial Market, through this we are able to have a larger
scope when it comes to investments. It is important that we have to attain knowledge
about the financial market for us to be able to innovate our ways of investments. Before,
having the traditional ways of business, people tend to invest in goods and businesses
having services but through financial markets we are able to put up our investments in
big companies and let our money work without even attaining cost of labor from your
employees.
2) When interest rates rise, how might you change your economic behavior?
- The Philippines is known for having debts, when interest rates rise I do believe it is going to be
more costly to borrow money. In relation to this we must lessen our borrowings and must rely on
the income produced within the country. However, people will say that the income generated
will not suffice the amount of budget needed by individuals. From my own point of view, with
good governance and with proper allocation of budget, there will be big possibilities that these
will be made possible.