Do you remember 2008-2009? That was a magical time in the real world, when thousands of people learned that their fantasy models were wrong, and things really were worth what the market was willing to pay for them. The exception being like 7 people that were liquid, solvent, unleveraged and holders of their assets in fee simple. Those guys got to keep valuing their stuff in whatever way they wanted to. (You were not in this group.) Everyone else learned that the present and future are not the same as the past.
Working on the theory that you want not just to teach Japanese but also to learn Economics, here's an exercise for you usagi:
- (for 3 points) explain the difference between liquid and solvent;
- (for 2 points) illustrate this difference with at least two relevant examples;
- (for 3 points) explain the meaning of "fee simple" with a view to both historical use as well as the holding of financial instruments;
- (for 2 points) discuss alternative title to financial instruments.
Work time 55 minutes, outside sources and references not allowed, 4 handwritten pages allowed at a maximum, 1 handwritten page accepted at a minimum.
Please post your response as attached scans or sufficiently large pictures.