Central Bank Case Studies Samples For Students

International Financial Management

Answer-5)
All the money supply in the country is controlled by the Central Bank and it has a number of options to control it. The best of them is Open Market Operations (OMO). It will be used in this particular analysis. Let’s assume that Thailand’s central bank is looking for the ways to prevent the withdrawal of the funds from the country.
It is fully controlled by the government and the country. The country may issue government based T-Bills and securities of different maturities like 1 year, 6-Months, 2 years and others. This would help investors ...

Introduction

Nigeria is one of the fastest growing economies in the world. It is growing at a rate more than 8% for the last decade. But Nigeria also has one of the highest percentages of poor people in the world and the percentage of poor population is continuously increasing. The growth curve of Nigeria is unable to improve the lives of the poor and destitute. As it happens in many developing countries, the mainstream financial institutes in Nigeria completely exclude the poor population from having any access to the financial system. This makes their daily living a perpetual struggle with poverty as ...

The themes of the two articles focused on the two Central Banks’ (the Federal Reserve and the European Central Bank) attempts to stimulate their respective economies through the use of ‘unconventional’ monetary tool (i.e., open-ended bond purchases to drive down the interest rates also known as quantitative easing). Though the Fed and the ECB have used the same monetary tool to affect economic activity, the goals were different: the Fed aims to boost the economy’s output while the ECB aims to save the euro.
I am interested in exploring how monetary policy affects the economic activity of a ...

There is a need for any country to have its central Bank. Unlike most countries, which use the central Bank system, the U.S has a federal Banking system which is also known as the fed. The headquarters of the federal Bank is in the capital Washington D.C and also has other twelve district banks in different locations. Federal Reserve Act established the fed in 1913 and was formed to solve problems of money in the country (Gali, 2009). The decisions made by the federal Bank directly affect the safety and soundness of the country’s financial system.
The federal Bank ...

Currency has been a medium of exchange from the existence of humanity and the Central bank was created for the sole initiative of ensuring reasonable currency exchange in different jurisdiction. Therefore, the thesis of this paper will be to look into the historical price movement and any central bank policy that has been put onto the British pound.

Price movement of sterling pound

First and foremost, it is worth noting that the British Sterling pound, is the fourth most traded form of currency after the US dollar, Euros and the Japanese yen. The price movement of the sterling pound is adversely affected by external ...

Introduction

Technology has taken most of the sections in the world and brought new developments. The financial sector has embraced the change and used it to improve all the operations. Information and technology advancements have improved the banking system which ensures customer satisfaction, makes easy the operations of the workers and the financial industry is able to improve. As time moves on, more improved methods are being discovered, which the financial industry can adopt to help improve their operations. With the improved functioning, clients can be able to manage their investments and savings thus resulting in value addition (World Bank., & ...

What is a cartel? (5 marks)

The companies in a market might collude to set the prices by making explicit or implicit agreements between them on the market price, sharing the market geographically, or controlling the quantity supplied in the market. The agreement between the companies in a specific market might create an oligopoly behaving like a monopoly. The companies might set the price, and all the agreement partners might obey the agreement. If the companies can create a large market power, they might behave like one monopolist. Cartel is the situation of existence of an explicit or implicit agreement between the companies in a ...

The Royal Bank of Canada had first tried to venture the financial market in Thailand in 1980. The bank’s ability to survive in third world country economy was limited. The authorities were skeptical about foreign bankers. Nonetheless, the interest rates were high, and the populations’ ability to pay was relatively small. In 1986, the bank had to close shop. The conditions were unbearable, and the bank could not cover the operating costs. The institution had not even become a fully-fledged firm before the unfortunate thing happened. They had been operating as a marketing outlet, an idea that had ...

Individual Case Complete: Bank of America

Executive summary
Mission and Vision Evaluation: The Company has maintained a plausible vision and mission statement that focuses on ensuring that it develops customer centric financial products and services that are innovatively based. Thus, through the company vision and mission statement, it has managed to ensure growth and market capture.
Milestones: Among the most fundamental milestones, the organization has sustained a top position in the banking industry despite the prospect of financial crisis across US. The plausible performance has been as a result of effective policy statement that is centered on operational Excellency. With millions of customers across US, the ...

Introduction

Economics is the name of earning and utilizing the money at a place from where the likelihood of earning would be on a higher place. Adam Smith and Alfred Marshal are known as the Father of Economics (FOE) and according to them, Economics is the subject which stated that how to earn the money and how to consume it .
There are two different kinds of economics, which particularly are Macroeconomics and Microeconomics. Microeconomics is the name of economics which relate to individual economics, while the economics concerned with the economy as a whole is known as Macroeconomics. It is one of ...

In the context of international trade, the term “Covered Interest Rate Parity” implies to the situation in which there exists equilibrium between interest rates and forward and spot currency values of two economies. Consequently, there are no opportunities for arbitrage between these two currencies. As an illustration, consider nation A, whose currency is trading at par with nation B’s currency, (Robert, 2005, pp. 21-6). However, the rate of interest in A is 5% while in B is 2%. Ceteris paribus, it would be beneficial to borrow currency of nation B, change it in the spot market to the ...

Introduction

The report presents discussion and analysis of compensation strategies of Nucor Corporation. The organizational structure significantly impacts the compensation system of an organization that affects its ability to attain strategic goals. If the compensation to executives is not aligned with the organizational culture then it may lead to adverse impact on the firm’s performance and lead to other consequences. Several studies indicate that the organizational culture has a significant impact on compensation as well as the firm’s performance. The firms offer different types of compensation to their executives that may affect the compensation structure. However, they are ...

The real GDP according to 2005 prices is expected to grow at 3 percent in 2015 according to World Bank forecasts and 3.1 percent according to the IMF forecast. Therefore, modest growth GDP growth is expected in 2015. Inflation is estimated at 1.5 percent and 2.5 percent by different agencies. The unemployment level is also expected to decline below the 6 percent mark. The expected GDP grow will increase general income and improve demand for the company products. This creates a general positive outlook on demand. It is augmented by the decline in unemployment level implying a wider market as more ...

The study of Bear Stearns abrupt fall and demise reveal the importance of credibility for a financial institution in a specific sense irrespective of its robustness. A business in general could fall if credibility and illiquidity become questionable. Bear Stearns is the first ever major investment bank to fail during the global financial crisis (Li and Mizrach, 2010). The 85 years old firm has survived a number of economic turmoil and recession, yet it fell when it was least expected to fall. A number of factors become apparent when studying the Bear Stearns demise, and these include the role of management, illiquidity, ...

Electronics unlimited Toronto

Mike is an employee who is unsatisfied with the company that he works. Due to poor working conditions that prevail in the previous company, he moves to Toronto.A marketing opportunity presents itself to him. Electronics unlimited is an upcoming company, and it has a post for marketing. Mike decides to apply for the opportunity that prevails itself, and the company-managing director Frank Wilson sets him for an interview.
Electronics unlimited Toronto is a growing company gives an opportunity to Mike, who is working in Toronto. The company is new, and it is growing at a fast rate in sales. It operates ...

Introduction

The Federal Reserve is one of the mysterious parts of the U.S economy. It is mandated with regulating the U.S economy. It exerts a lot of influence to the development and growth of the economy. It works as the central bank of the U.S. The Federal Reserve was established mainly to control the circulation of currency in the country. It was approved by the government of the congress.

Should the president and the congress control the Federal Reserve?

The Federal Bank serves both the public and the private institutions. Though it was initially formed and approved by the Congress, its operations are fully autonomous. Its intention was to serve bankers. ...

Kuwait is an Arab state found at the northwestern region of the Arabian Gulf. The sovereign state covers an area of 17,818 square kilometers and is bordered by the Arabian Gulf to the east, on the north and west by Iraq, and by Saudi Arabia to the south. The 2008 Index of economic freedom ranks Kuwait as the second-most free economy in the entire Middle East. The nation has a well-developed banking system with several banks dating back before oil discovery. The nation holds 10% of the world’s reserves that translate to 104 billion barrels (Crystal, 1992).
...

Monetary policies are interference in the economy by the central bank of a country with an aim of influencing economic activities. Intervention by the central banks can be through interest rates, regulation of the banks and open market operations. These actions could be aimed at reducing or increasing money supply in the economy (Gitman, 2009).
Fiscal policy is manipulation of government expenditure to achieve certain objectives. Fiscal policies include public adjustment of taxes, reducing or increasing government expenditure. Preparation of deficit or surplus budgets is fiscal policies that can be implemented to achieve certain objectives (Zoli, 2005).
Open ...

The Methods of payments have moved from gold coins to cash to cheque to smart cards and E-payments. But still all methods have importance and existence, although some methods are not widely used and the ratio is changing every year. Statics show that even today in US nearly 50% of transitions are paper based payments while in 2003 it was 61% and in 1990 it was 81%. Technology is mainly reason behind rapid decreasing trends of paper payments. Technology has made possible for us to access our funds 24 hours and made E-payments 24 hours. Electronic payments were first ...

The European sovereign debt crisis dominated international financial markets during 2010-2012. Economies fell into recession and financial market volatility was high. Critically analyze how the government debt problems initially faced by a few relatively

Introduction

The European financial crisis has extended beyond borders and is now affecting other countries in various condiments. China and United States of America are the most affected nations because they depend a lot on European countries for exports. The world is facing a critical problem brought about by the financial crisis, and financial experts are yet to determine the solution to this problem. The global economic meltdown of ...

Introduction

The European financial crisis has extended beyond borders and is now affecting other countries in various condiments. The world is facing a critical problem brought about by the financial crisis, and financial experts are yet to determine the solution to this problem. The global economic meltdown of 2008 found the European Union struggling with the unshakable financial crisis that has been slowing the growth of European currency, the Euro. As the crisis enters its third year, the European and the whole world is worried whether it would end up affecting the world economy leading to world financial crisis (European Commission ...

Vision of a Model Research Center

Rachel’s style of leadership in ICCR is definitely a transformational one given that the research center was her idea and all other employees seem to be following her vision. One of the assumptions of this kind of leadership is that it believes that people tend to follow those who inspire them. This is evidenced in Rachel’s leadership as she even has women in her organization looking up to her as a role model. Rachel is also a transformational leader as can be seen by the fact that she believes in injecting energy and enthusiasm into ICCR; this is why she ...