1) Celestila Moonn tells the following to her uncle Dr. Lee. However, Lee was not sure whether he agrees with Moonn.

Stocks are known as "equities" because each stock share represents a small percentage of ownership in the company. When you invest in stocks, you accept the risk that your investment may decline as well as rise in value; however, unlike preferred stock, common stock always pay dividends quarterly.

Do you think Dr. Lee was correct to disagree with Moonn? Briefly discuss if you agree with Moon.

2) Celestila Moonn, an UCLA intern at SchoolStreet, Inc, opens The Wall Street Journal and finds that in Japan the capital markets surged recently, benefiting from Prime Minister ShinzoAbe and the Bank of Japan’s aggressive policies designed to stimulate economic growth and lift the country out of deflation. Moon was wondering in response to these polices, whether Japanese yen will appreciate or depreciate relative to U.S. dollar. In order to clear her concepts on foreign exchange markets, Moonn opens the readings on “Foreign Exchange Markets” and after completing the readings, Moonn ponders whether the exchange rate changes between the U.S. dollar and the Japanese yen necessarily good or bad for Japanese automakers. Briefly discuss whether strong or weak yen would benefit Japanese automakers.