1. Why is transparency; information quality/reliability and good governance important for corporations and for the financial markets ? Discuss in the context of some governments ability to raise credit through bond issues to combat the COVID crisis at zero or even negative interest rates?
2. What is the distinction between a stock and a flow variable? How does the stock & flow variable distinction impact the reporting and organization of financial information? Financial ratios derived from accounts are unit free. How will you use financial ratios to draw information about firms?