Module 2.

1. Determine the variables related to the system with the cause, effect, and solution. Give the
measurement of each variable. (50 variables)

Variables Measurement
1. debt Pesos, number of cases
2. Investment Pesos, area & distance, percentage
3. corruption Pesos, percentage, number of years
4. frauds Number of cases
5. government policy Number of cases

6. Mark-to-market accounting Number of years, area& distance

7. real exchange rate Rate,pesos, percentage
8. credit growth Percentage,pesos
9. domestic inflation Number of cases, number of years
10. credit to the public sector Rate, percentage, number of cases

11. Short-term investment horizons Rate, frequency, percentage

12. Stock market crashes Number of cases, intensity
13. credit crunches Intensity, number of cases

14. Ratings agencies Rate, number of years,area & distance

15. sovereign defaults Number of cases, intensity

16. Off-balance-sheet risk Number of cases,rate, percentage

17. profit Pesos, percentage
18. cost Frequency, volume
Pesos, percentage
19. Capital
20. Right business Frequency, number of years
21. Cash flow Rate, intensity
22. bankrupt Pesos, percentage, number of cases
23. funds Percentage, pesos
24. revenue Number of years
25. currency Rate, percentage
26. demand Number of years, intensity
27. branding Area & distance, frequency, volume
28. loans Percentage, pesos, number of years
29. sales Percentage, frequency, pesos
30. Credit default swaps Number of years, intensity, frequency
31. shortage Rate, number of cases, kilogram
32. outbreak Number of cases, Number of years
33. marketing Percentage, pesos, frequency
34. advertising Rate, number of years, volume

35. Shadow banking Percentage, Rate, number of cases

36. federal Number of years
37. government regulations Number of cases
38. uncertainty Intensity
39. globalization Number of years, intensity
40. Innovation Number of cases, number of years
41. stocks Volume, intensity
42. diversity Volume, intensity
43. complexity Frequency, intensity
44. information overload Intensity, frequency, volume
45. supply chains Rate, percentage
46. brand identity Frequency, volume, kilogram
47. credits Intensity, percentage
48. deflation Number of cases, intensity
49. growth Rate,pesos
50. business plan Intensity, frequency
2.

Cause Effects Solution

1. Debt low credit score
2. Domestic inflation impact the cost of living, the cost
of doing business, borrowing
money, mortgages, corporate, and
government bond yields, and
every other facet of the economy.
3. Shadow banking causing financial turmoil
raise taxes to an equal amount
Start a Business
provides an alternative to
traditional bank loans and is a
major contributor to overall
economic activity and growth
4. Corruption increases inequality, decreases Improving governance ·
popular accountability and Guaranteed resources and
political responsiveness, and thus independence for the judicial
produces rising frustration system
5. Deflation lower production, lower wages, the central bank can increase the
decreased demand, and even reserves of commercial banks
lower price levels. through a cheap money policy.
6. Shortage depression, anxiety, and Convert Unnecessary Assets to
substance abuse. Cash
7. Loans depressed economic conditions Repay hight interest loan, increase
high real interest rate, inflation, repayments with rise in income
lenient terms of credits, credit
orientation poor credit monitoring
8. Currency crisis weaker currency makes imports implementing floating exchange
more expensive rates
9. Federalism it can encourage political find a middle way, a blueprint of
participation, give states an government in which the powers
incentive to engage in policy were shared and balanced
innovation, and accommodate between the states and national
diverse viewpoints across the interests
country
10. Money laundering inexplicable changes in money Improve Searches with
demand, prudential risks to bank Technology,Have Regular Cross-
soundness, contamination effects Communication,Standardize Your
on legal financial transactions Systems
11. Investment increased value added, reduced Handle asset allocation properly,
costs, larger production, higher Diversify your investment.
competitiveness
12. Scarcity lead to widespread problems such economic growth. reduce our
as famine, drought and even war wants, and. use our existing
resources wisely
13. Supply chains wasted labor, service redundancy, Optimize Inventory and Supply
and missed deadlines Chain Demands Across Multiple
Channels.
14. Overload information Not only does information Keep things simple.
overload slow down your
employees' productivity, it also
impacts their ability to make
timely decisions. They feel
confused, stressed out, frustrated,
and naturally start making
mistakes.
15. Branding ability of reputations to influence restructuring their website or
people's future behavior business' operation around their
ideal customer or value
proposition.
16. Revenue governments impose taxes on combining a unique blend of high-
members of society. impact consulting
17. Capital bring considerable economic to provide financial advisory
benefits to developing countries services to closely-held
 but, if not properly managed, can
also cause economies to overheat,
increase exchange rate volatility,
and lead eventually to large
outflows.
18. Cost An increase in the expenses
required to produce goods for sale
means a lower gross profit.
19. Rating agencies ey affect the interest rates that
companies and government
agencies pay on their issued
bonds.
20. Short- term investment have lower rates of return. Any
horizon declines in value of a short-term
investment will directly affect the
net income of a business.
21. Profit affect a business's net profit are
purchases, volume of goods sold
and the cost of labor.
22. Marketing Higher sales for a business that
employs successful marketing
strategies translate into
expansion, job creation, higher tax
revenue for governments and,
eventually, overall economic
growth.
23. Advertising If advertising succeeds in those
two tasks, consumers will choose
the advertised product when they
make their next purchase.
24. Sales more cash flow, which is why
companies struggling to meet
near-term financial obligations
often turn to discounts.
25. Credit crunches credit crunch can do a lot of
damage to the economy by stifling
economic growth through
decreased capital liquidity and the
reduced ability to borrow.
26. Sovereign defaults drastically reduce your credit
score, impact your ability to
receive future credit, and can lead
to the seizure of personal
property.
27. Off balance sheet risk difficult to identify and track
within a company's financial
companies, private equity firms,
and lenders in the middle market.
determine the time and money
you need to develop and
implement it.
to reduce the informative
asymmetry between lenders and
investors, on one side, and issuers
on the other side, about the
creditworthiness of companies or
countries.
can easily convert to cash — such
as a high-yield savings account or
a money market .
Maximizeyourprofit
an effective defense against
competition.
helps to make consumers aware
of a product and aims to build
preference for that product over
its competitors.
sales promotions restrict your
profit potential, but they allow
you to generate more revenue in
the short run due to increased
sales volume.
borrowers can pay back, even if
there is an asset mitigating the risk
a settlement between creditors
and the debtor government
Effective interest rate risk
management solutions providing
 statements because they often
only appear in the accompanying
notes.
28. Credit risk reduce the bank profitability
29. growth creative destruction, natural social
tension, health challenges,
increase in income inequality,
30. Brand identity crisis poor brand management, bad
communication, and lackluster
leadership skills.
31. Globalization increased competition.
32. Bankrupt wipes out most types of debt,
including credit card debt, medical
bills, and personal loans.
33. Frauds damage international standing
and affect the ability of nations to
get international support.
34. Government policy if government impose more taxes
& duties on a particular sector
than profit margin of this sector
will go down even businessmen
can lose their interest to this
sector and they can give up this
business.
35. Credit default swap has lowered the cost of issuing
bonds and enhanced the liquidity
in the bond market.
enhanced flexibility to navigate
market challenges and compete
utilise transaction structure,
collateral and guarantees
free price mechanism and
controlled price mechanism
Know Your Marketplace, Be Your
Own Brand Ambassador
need robust standards in
responsible business conduct and
good corporate governance
solution that can eliminate a large
portion of one's debt, ... and are
now using credit without having a
clear grasp of the consequences.
Recognizing the need for speed in
detecting fraud and protecting
customers, DKB turned to fraud
detection and anti-mone
provide for national defense,
address environmental concerns,
define and protect property rights,
and attempt to make markets
more competitive
swaps to add a layer of insurance
to protect a bond, such as a
mortgage-backed security
3.

4. Reinforcement loop
5.Balancing loop
Assignment
1. The financial crisis was primarily caused by deregulation in the financial industry. That permitted banks to
engage in hedge fund trading with derivatives. Banks then demanded more mortgages to support the
profitable sale of these derivatives. They created interest-only loans that became affordable to subprime
borrowers.

-Financial crises are such as banking crisis, currency crisis, debt crisis, stock market crash, and speculative
bubble and burst.

2. Financial crises are such as banking crisis, currency crisis, debt crisis, stock market crash, and speculative
bubble and burst, International financial crisis,Wider economic crisis

3. In a financial crisis, asset prices see a steep decline in value, businesses and consumers are unable to pay
their debts, and financial institutions experience liquidity shortages. A financial crisis may be limited to banks
or spread throughout a single economy, the economy of a region, or economies worldwide.

4. -In the Philippines, conflict and violence are generated by poverty, inequality (both political power and
economic resources in the hands of an elite), marginalization and poor governance.

-Filipinos are having a hard time surviving in such difficult conditions, and more and more are falling into
extreme poverty. According to the Asian Development Bank, the major causes of poverty include: low
economic growth, a weak agricultural sector, increased population rates and a high volume of inequality.
LESSON 4

1. Determine the variables related to the system with cause, effect and solution. Give the
measurement of each variables.

Variables Measurements Variables Measurements

1. Terrorist
10. Injustice Peso, of area
Number cases and 35.
26.Loss
Environmental
of Funds Area and
Number ofdistance
cases, peso
distance, volume damages
11. Illiteracy Number of cases 36. debt Peso, percentage
2. Lack of military Peso, area and 27. Biological Loss Number of cases, area
12. Crime Number of volume
distance, cases 37. Unity and distance
13.
3. MartialMental
law Number
Peso, of casesvolume, 38.
28.Affects in market Peso, kilogram
social Intensity, rate
Issues number of years disruption
14. Physical Issue Number
4. Rebellion Numberofofcases,
cases,rate
rate 39.
29.lossthreats
of unity of Intensity
Number of cases,
terrorism area and distance

15.
5. MoneyEconomic Peso, rate of years
Number 40.
30.Civilizations
Direct Area and
Intensity, distance
rate, volume
Cause Economic
16. Corruption Number of cases, rate 41. Negative identity
Destruction Number of cases
6. Poverty Number ofof cases, 31. Increased
cases, 42. Intensity,
17. Employment Number Frustration Numbervolume,
of casesrate
numberofof years, are Nationalism
number years
and distance
18. Irresponsible Rate, percentage 43. Fear Intensity
7. Number of cases, 32. Government Number of cases
19. Overpricing
Unemployment Peso, kilogram, rate
percentage 44. Apprehension
Issues Number of cases,
rate
8. Government Number of cases, 33. Social Issues Number of cases
20.
Policy Human Numbernumberofofcases
years 45. Financial crisis Peso, rate
Rights
9. Religious Number of cases 34. Loss of Number of cases, area
21. Education
Causes Number of years 46. Ideological
Property andArea and distance
distance
22. Inequality Number of cases 47. Conflict or wars Number of cases,
area and distance

23. Preventing Intensity 48. Medical Number of cases

Radicalization consequences

24. Scamming Number of cases 49. Trauma and the Number of cases,
individual number of years

25. Loss of Area and distance 50. Survivors Number of cases,

Tourism volume
2. Give the cause, effect and solution of the terrorism. Use variable at the activity 1.

Cause Effect Solution

1. Terrorist Physical and mental health Seizing the funds of
like creating a fear terrorist organizations

2. Lack of military Can't defend borders Look for volunteers

3. Martial law Reduce violent urban crime, Improve the purpose of

collect unregistered martial law
firearms

4. Rebellion Can lead to serious harm Decide on Appropriate

Consequences for Breaking
Rules

5. Economic causes Decrease economy currency extreme monetary stimulus

6. Poverty children's health, social, Look for a job

emotional and cognitive
development, behavior and
educational outcomes

7. Unemployment Poorer health and housing Better education and

stress motivating programs

8. Corruption Increase the number of Reform public

terrorist attacks originating administration and finance
in a country, wastes our management
taxes or rate

9. Conflicts or wars Death, injury, sexual arms control and diplomacy

violence, malnutrition,
illness, and disability

10. Illiteracy Poorer employment Educate people

opportunities and outcomes
and lower income

11. Crime Psychological effects such Help ex-offenders find

as anger, depression or fear, secure living-wage
experience negative feelings employment
or have problems and
sleeping

12. Mental issue Anger, fear, sadness, and Medical treatment

feelings of helplessness

13. Threats of terrorism Trauma in the individuals Seizing the funds of

 terrorist organizations.

14. Inequality Higher rates of health and increase food stamps for
social problems poor people; raise the
minimum wage; increase
social security for people in
the poor, working, and
middle classes; increase
unemployment
compensation

15. Scamming Can lose self-esteem and Report those scammers to

relationship with others the security team

16. Loss of tourism Economy will be Planning and

decreasing communication, informing
industry

17. Environmental damages Increased poverty, medical Create more government

illness, , war and human program
rights abuses

18. Biological loss Health impact, changes in End hunger and

ecosystem services affect malnutrition
livelihood, local migration

19. Loss of property Financial consequences

20. Lack of unity War, violence, financial the nation will, in time,
instability, and widening deteriorate
inequality

21. Employment Provides financial freedom Improve quality of

and decision making power education

22. Education Higher income and better helps us grow and develop
health and wellbeing

1. Human rights Freedom, increase Stand up against

economic growth discrimination

24. Preventing Having peace in economy Role of Education in the

radicalizations Prevention of Violent
Extremism
 25. Increased nationalism Unities people and attachment to longstanding
promotes a sense of identity conditions and practices

26. Government policy Inequality, economic solve relevant and real-

consequences world problems

27. Religious causes can lead to posttraumatic Lower the levels of

stress as well as personal competence
harm

28. Ideological maximize prosperity and Try to Have a Healthy

minimize conflict Discussion

29. Civilizations a relaxation of individual System of government

energy

30. Physical issue Can affect emotional Government program and

anxiety medical treatment

Assignment

1. What are acts of terrorism?

• Terrorism is intended to cause mass casualties, panic or the loss of critical resources to
disrupt vital services or the economy. It may include violence or cyber attacks.Acts of terrorism
are more likely to occur at or near high-profile sites or places where large numbers of people
gather—like government buildings, military facilities, utilities, bus or train stations, and major
public events. An act of terrorism was previously interpreted as anything where the motive was
to create fear amongst political opponents.

2. What is the example of terrorism?

• Terrorism is an act of violence, different from other acts of violence, for example, genocide,
war, war crimes, political assassinations. It also included hijackings, hostage takings,
kidnappings, mass shootings, car bombings, and, frequently, suicide bombings.

3. Why does terrorism happen?

• Terrorism happen because of civilizations or culture clashes, globalization, religion, Israeli-

Palestinian conflict, or the Russian invasion of Afghanistan. More personal or individual-based
reasons for terrorism are frustration, deprivation, negative identity, narcissistic rage, and/or
moral disengagement. Terrorism happen because it was caused by religion. Though it is not the
main cause for terrorism, religion does play a significant role in driving some forms of it. Many
terrorist get wrong understanding in religion.

4. As a youth, what is your responsibility to the state?

• As a youth we are responsible to build the nation, to make the society good and noble. As a
youth, we can improve the community and culture of society. We need to understand our
responsibility because we are the future of the nation. As human beings, we have some
essential responsibilities towards our society. We must be honest, helpful, and loyal citizens
and assist the ones who need help. Moreover, a good citizen ought to gain knowledge and
spread it in his surroundings.