Exercise Five

Bonds	Basically, it is considered as IOU issued by a company or government. Investorsinvest money in bonds for a while, to get an interest. For a fixed term, bond investorsimmediate blocking of the money. However, at times, investors can withdraw the moneydeposited for commercial purpose.
Property	It is safe and profitable to invest in a property. It is beneficial for long-term goals. What's more, the investment without the knowledge and skilled care may suffer considerably.
Bank Fixed Term  Investment	The total amount of money deposited for a period usually six or twelve months away is blocked by the bank for a certain time. Here, investor’s mayobtain higher interest than a savings account straight.
Short-term deposits	Bank savings account is the simplest form of short-term investment. One of the main advantages of this investment is that the supplier has 100% guarantee of profitability. However, the returns offered are low compared with another investments.

Exercise Four

Inflation is a increase in the general level of prices of goods and services over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, the inflation produce a loss of real value in the internal medium of exchange and unit of account in the economy.  The inflation rate is A chief measure of price inflation, the annualized percentage change in a general price index.

There were different schools, the most can be divided into two broad areas: quality theories of inflation and quantity theories of inflation. The quality theory of inflation rests on the expectation of a seller accepting currency to be able to exchange that currency at a later time for goods that are desirable as a buyer. The quantity theory of inflation rests on the quantity equation of money, that relates the money supply, its velocity, and the nominal value of exchanges.

Currently, the quantity theory of money is widely accepted as an accurate model of inflation in the long run. Consequently, there is now broad agreement among economists that in the long run, the inflation rate is essentially dependent on the growth rate of money supply. However, in the short and medium term inflation may be affected by supply and demand pressures in the economy, and influenced by the relative elasticity of wages, prices and interest rates.

In 2011 Colombia  has a inflation rate of 3.17%

Exercise Three

MICROFINANCE: Is a term to describe financial services to low-income individuals or to those who do not have access to typical bank services.Microfinance is also the idea that low-income individuals are capable of themselves out of poverty if given access to financial services. Some studies indicate that microfinance can play a role in the battle against poverty, it is also recognized that is not always the appropriate method, and that it should never be seen as the only tool for ending poverty.

PUBLIC FINANCE: Is a field of economics about the pay for collective or governmental activities, and with the administration and design of those activities. This is divided into questions of what the government or collective organizations should do or are doing, and the how to pay for those activities.

CORPORATE FINANCE: The objective of corporate finance is to maximize corporate value while managing the firm's financial risks. Although it is in principle different from managerial finance which studies the financial decisions of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.

Exercise Two

The most popular service of a bank is credit card, It is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card creates a revolving account and grants a line of creditit to the consumer from which the user can borrow money for payment to a merchant or as a  cash advance to the user.

A credit card is different from a charge card: a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash car, which can be used like currency by the owner of the card.

Another product is Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interes rate or for the convenience of servicing only one loan.

Finally another product is student banking services, you can get a checking account, savings account or credit card designed just specially for us.

Exercise One

If I go to study to another country, I will have to think in the money that I will can spend, for example, I will have to work because my family not give me all the money that I need to survive, I will need money to rent a house, besides that I will need money for buy my food. On the other hand I will need pay daily expenses how transports, materials for the university.

As you can see study away from home is very hard…