Essays on Central Bank

Shadow banking, as an economic phenomenon of recent years, should be viewed primarily in the context of changing economic conditions. Today, a new global macro position is a post-crisis pause of rapid growth of the world economy, the consequence of which is fixed to the long time the situation of general uncertainty in the economy. In the context of the changing global macroeconomic conditions, the problem of shadow banking and its regulation is relevant. The topic deserves close attention from the perspective of scientific and practical understanding of this phenomenon. Shadow banking is a financial market segment, operating outside ...

An essay exploring the effect of the macroeconomic environment in Italy and Russia as it relates to Proctor and Gamble’s international economic activity. Procter and Gamble [P&G] is the world’s top producer of household products. P&G manufactures a wide range of products from toilet paper and sanitary products to food and cleaners. It can be said that the company produces everything a consumer could need to stock their homes comfortably. June 2014, P&G reported over eighty-three million dollars in revenues during that fiscal year (MarketLine, 2015). P&G’s headquarters are located in Cincinnati, Ohio but the massive ...

Introduction

Money is a means of payment for services and goods. Money can also be defined as anything that allows us to purchase goods and services (Stanford 2008, 189). Money serves number of functions like measure of value, means of exchange and store of value. These functions often contradict each other and these contradictions may lead to economic crisis.

Function of money

Money: In ancient times, barter system was used for payment of services and commodities. It was difficult to put exchange value on commodities or services rendered. Trading in barter system was highly inefficient, as seller had to find a buyer who ...

The role of a central bank during a bubble phase has been widely debated in the past. While some argue that monetary policy tools should not be used to prick a bubble in the economy, others argue that using monetary policy tools to prick asset bubbles early in their development can benefit the economy in the long term before it becomes too big and poses systemic risk to even the real sectors. A central bank can use monetary policy to burst a developing bubble in the economy by increasing the policy interest rate. This would cause the yields of ...

Introduction

Development has always been a key issue among developing countries in Africa. All countries in Africa are termed as developing countries, meaning that they are still grappling in poverty issues such as food insecurity. These countries are well endowed with vast natural resources which if used wisely would ensure that many of the problems that such countries face would be solved. The problem that makes these countries lag behind when it comes to development is the lack of proper institutions to propagate the needed changes that need to be made (Kumo, 2009). Many institutions that are currently present are ...

27th January2016

The article talks about Canada central bank’s move to keep its interest rate unchanged despite an economic slowdown. The Bank of Canada revised down its annualized growth rate from 2% last year to 1.4% in the first half of this year. The economic slowdown can be attributed to the current decline in oil prices. The central bank’s move to maintain the lending rate at 0.5% is a move seen to encourage more lending by the banks and, as a result, increase spending rates in the country. Oil is a product that has a significant impact on Canada's ...

The Federal Funds Rate Hike

The New York Times, in an article by Binyamin Appelbaum entitled "Fed raises key interest rate for first time in almost a decade" discussed the pronouncement of the Federal Open Market Committee ﴾FOMC﴿ to increase the Federal Funds rate. The decision came exactly seven years after the financial crisis in 2008 when the FOMC reduced its rates to near‐ zero level to prevent the economy from collapsing. The article described the move as signaling the beginning of the end of the Fed 's stimulus program and highlighted the Fed statement that the Fed intends to increase the rates gradually ...

Since the Great Depression, economists have been arguing about Keynesian and Monetarist Theories. They argue which theory was best suited based on its infrastructure for the situation. It causes them to argue today on which theory would be best for the nation’s economy. While the two theories overlap slightly, they are vastly different, with one focusing on the economic stimulation the central bank can provide, and the other focusing on the central bank’s monetary supply. While both have faced criticism, and both have been used to manipulate the country’s economy, it seems Keynesian Theory is best ...

Introduction

The Bank as a commercial organization aims to make a profit, which ensures the stability and reliability of operation and can be used to expand its activities. However, the focus on the profitability of operation is always associated with various types of risks, which in the absence of limitation may result in losses. Therefore, any bank in determining the strategy of its activities creates a system of measures, which on the one hand, aims at making a profit, and on the other hand, takes into account the maximum possible prevention of losses in banking activities (Madura, 2012). The banking ...

Q1 The Australian Housing Market Report, prepared for National Australia Bank Ltd. by RP Data in November 2014, delineates the core changes that occur in the Australian housing market. Nowadays, many economists argue whether or not there is a housing bubble on the Australian housing market, because some features of it let them assume that these market conditions are quite similar to those that existed prior to the collapse of housing markets in other counties (Mercer, 2014). Such market failures, or so-called price corrections, can bear great risks for state stability and welfare due to the strong social impact ...

ANALYSIS OF DIFFERENT EXCHANGE RATE REGIMES WITH EFFECTS ON INTERNATIONAL TRADE

References 13 Analysis of Different Exchange Rate Regimes with effects on International trade Exchange Rate Regime or System It is an economic and financial system in which one country manages its exchange or foreign currency rate against other currencies as well as measurable standards such as gold and silver etc. it is imperative to remember that an exchange rate represents the price of any currency in terms of other foreign currencies. Varieties of Exchange Rate Regimes When different parties, investors and government authorities, trade or deal in Foreign Exchange (FOREX) market, it is quite imperative for all of them ...

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The Capital Structure of Chinese Companies

Introduction Several researches have been conducted to demonstrate the current structure of the Chinese markets, which appears to significantly vary across various industries (Morri and Beretta 2008). Apparently, in order to understand the intricacies of the capital structure in China, it is important to consider that capital structure is different in each industry. For instance, the property industry is different in the sense that the property industry has more collateral assets accompanied by larger that has higher leverage ratio (Liang, Li and Song 2014). On the other hand, the financial sector sets specific standards when ...

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1. Background For many decades since its independence in 1923, Turkey was a largely agrarian economy, with the majority of its people living in rural areas. Yüksel Görmez and Serkan Yiğit note in The Economic and Financial Stability in Turkey: A Historical Perspective that “77% of the population, about 13 million people, were living in rural areas and largely dependent on agriculture” (3). Agriculture itself depended on good weather conditions. This paper seeks to assess the reasons for the ...

It is known that Greece has constant problems that arise within its economic system, leading to social and political disruptions. In order to understand the core problems lying behind its crises we can use different statistical statements and sources, but one of the best options is the Balance of Payments. It characterizes the general development of foreign trade, the level of production, rate of employment and consumption. Its figures let us realize the ways the country uses to bring the foreign investments and the instruments it employs to cover its foreign debt. Overall, the BOP is the prior source ...

Business Opportunity Analysis: Chocolate Import

Exchange rate Sales volume Import duty and related costs Initial Investment Depreciation Working capital requirements Discount rate Seasonal sales fluctuations III. Analysis of the business opportunity. IV. Alternative solution. V. Conclusion. VI. Exhibits.

Executive summary.

A business proposition to import and sell Belgian chocolates in the United States has been offered for analysis. The basic assumptions for this venue are an up-front lump-sum payment for exclusive right in the US for five years and the 35 percent discount on the buy-in price in Belgium. The existing market research shows a 1 500 kg of gourmet chocolates per month market capacity. Taking ...

“Dollar rally” has become probably the top news on foreign exchange markets, which can have serious consequences for the US economy (Graph 1, appendix). Stronger dollar is a kind of head wind for American exporters while import from other countries becomes more competitive. Strong currency can theoretically become a stimulus for the Federal Reserve System provoking increase of interest rates. Many companies all over the world borrowed US dollars for investments or development; therefore, dollar strengthening provokes their debts increase. In current situation Central Banks, foreign exchange traders and exporter all over the world keep a close eye on ...

Most of the central banks in many countries have almost similar structure. However, the Federal Reserve System in the USA has a totally different structure. Federal Reserve System was created in 1913. The reasons as to why it has 12 Regional Federal Reserve Banks can be traced to the American political history .

Before the Federal Reserve System, there was fear in America, in the political arena, of centralized power. The Americans had a great resistance towards setting up of a central bank. They also had a high doubt on the moneyed interests upon which central banks were formed. This distrust had led ...

What is fiat money? Why is fiat money important in the United States today?

Fiat money is a kind of money that has no intrinsic value. It has value of exchange but no value in use. It is used as money because the government decreed it as valid money and the public willingly accept it in exchange of goods. Normally, fiat money bears “legal tender” feature and includes modern paper currency, coins and checkable deposits.

This kind of currency is very important in today’s modern economies like the United States primarily because it is widely used as ...

Interest Rate and Foreign Exchange Markets

a) Using a correctly labeled graph of the foreign exchange market for the Canadian dollar, show the effect of the change in real interest rate in Canada on the international value (the exchange rate) of the Canadian dollar (expressed as Mexican pesos per Canadian dollar).

The Interest Rates has a direct impact over the exchange rate of a country as any change in the interest rates announced by the central bank will influence the demand and supply of the currencies in the foreign exchange market. In other words, if the central bank of the country is concerned with the rising inflation in the ...

We live in tough times. For example, the State of Greece’s insolvent economic-bubble bursting may bemuse certain high-level German or IMF officials, but in reality the situation is no laughing matter. The unrelenting fact is, that negotiations matter. Whether parties plan to negotiate terms of future business, or getting out of a serious nationwide financial scrape or collapse, best practices in negotiations is a critical part of the world today. The task of this research paper must convey an adequate summary of the Greek current financial crisis in ...

Balance of Payment overview

Balance of Payment is a record of an economy’s transactions with the other countries over an economic period which is mainly one year. The records include trade transactions for both exports and imports of services and goods as well as financial transfers and financial capital. In that respect, the Balance of payment between America and Australia for the period 2006 – 2013 is a summary of transactions between the two economies over those economic periods.

- Current Account Balances Among the key components of a balance of payment is the current account which records goods and services flow between the ...

Question 1. Explain why the aggregate demand curve slopes downward?

Answer: The summary of the IS-LM model is depicted by AD curve. AD curve slopes downward because at a lower level of price, the real money balance increases, and interest rate falls, which stimulates the investments. As a result the equilibrium income increases.

Question 2. What is the impact of an increase in taxes on the interest rate, income, consumption, and investment?

Answer: When the tax increases, it will cause the IS curve to shift towards left reaching to IS2 from IS1. As a result of this, the equilibrium point A shifts to B where the interest rate will reach to r2 by falling from r1. The income will also be reduced from Y1 to Y2. The increase in the tax ...

Arab Republic of Egypt (ARE) is located in the north-east Africa and partially in Asia (Sinai). It shares borders with Israel, Palestine (Gaza Strip) to the east, Sudan to the south and Libya to the west. In the north Egypt borders the Mediterranean Sea and the Red Sea in the east. The Suez Canal (length 173 km) spread through the territory of Egypt is the shortest sea route from the Mediterranean to the Red Sea and to the Indian Ocean. Therefore the Suez Canal is an essential strategic object towards Egyptian economic prosperity. Egyptian territory is actually inhabited only ...

- Introduction

IBM is a world leader company in information technology and stands as the largest revenue generating Company in its field. In the past 50 years, IBM has earned a place for itself as the pioneer in information technology developments and innovation. The Company manufactures products ranging from hardware to software for its impressive clientele around the world. These products are designed for another range of storage products, line of business servers, customized microchips including the application software. In addition to manufacturing, IBM also serves as a consulting and outsourcing agent. The new information age is quite challenging to compete ...

THE UNITED STATES FEDERAL RESERVE SYSTEM

The Federal Reserve is the central bank of the United States of America (Federal Reserve System, 2013). It is governed by a board of directors appointed by the president, whose main responsibility is the determination of the monetary policy through the manipulation of the various monetary tools (Federal Reserve Board, 2013). The bank was originally formed in December 23rd 1913 by an act of congress and is currently headquartered in Washington D.C, with twelve other branches located in major cities across the country (Federal Reserve System, 2013).

One of the monetary tools that are used in setting the monetary ...

Role of Federal Reserve

In the past few years, the Federal Reserve has come under increased scrutiny due to the financial crisis of 2007 – 2009. It has been criticized for lowering the interest rates, which resulted in cheaper mortgages, and thereby precipitating into a full blown financial crisis. Further, it has also been criticized for transforming itself into an investment vehicle, due to its role in quantitative easing, even though it helped in financial recovery. Historically, it has been Federal Reserve’s dual mandate to maintain the stability of prices and employment. That it does by varying its federal funds target, by ...

3.1 Assess the factors contributing to the establishment of general and specific rates of interest.

Interest rates are the prices that individuals or institutions pay for the use of various financial assets. General interest rates apply to a cross section of individuals and have the most influence on the economy of a country. The government through the central bank aims at monitoring and influencing the direction of general interest rates. Specific interest rates on the other hands are narrowed down to apply to a specific financial instrument or a small group of financial instruments . These specific interest rates do not affect the macroeconomic ...

Introduction

This is a strategy adopted by the government through the Central Bank to control macroeconomic shocks due to fluctuation in wages and prices of goods and services. Stabilization may include monitoring the business cycle and interest rate regulation by the central banks. Moderation of these factors leads to changes in unemployment rate, recovery of an economy from economic shock control borrowing and money supply. In general terms stabilization are used to regulate the fluctuation of business cycle. There are two main elements of stabilization policies, that is, monetary and fiscal policies.

Elements of Stabilization Policies

Monetary policy This is the process through which ...

Austerity Measure

The growth path of an economy does not follow a smooth trajectory. It is composed of a number of short-term and long-term fluctuations. The magnitude and duration of such fluctuations are varied. The government uses its two important tools, the fiscal policy and the monetary policy to smoothen out this jagged path to some extent. During periods of boom, that is, when the economy experiences high rate of growth with low unemployment rate and high income, the government follows a contractionary fiscal and monetary policy. In times of slump when the economy is under a phase of deceleration in growth with low output ...

Abstract

Inflation more often than not is regarded as a bad economic occurrence where prices of commodities and the general cost of living rise. However, inflation also brings positive economic growth and development. Analysts argue that inflation that is regulated presents several benefits for economic growth and development on one hand while on the other factions have refuted claims to the fact that inflation can be utilized to provide any benefits for the economy. Based on an article by Kenneth Rogoff the paper argues for and against the viewpoints of various authors in regard to the benefits visa-vis the disadvantages of ...

The United Nations (UN) was founded immediately after the Second World War in 1945. The international organization was initially established by 51 country committed to developing friendly relations among member states upholding international peace and security, promoting social progress, promoting human rights, and improving living standards. Due to UN’s unique international character and the power within its founding charter, this organization can take action on a variety of issues. The organization can also provide a forum for its expansive member states so that they can express their views, through the Security Council, the economic and social council, the UN’s ...

The Mexican peso in this case appreciates in relative to the US dollar, is of great benefit to the Mexican production industries. This is because the cost of exports will raise thus increase in profits for the Mexican industries. Mexican products too will be competitive in the international market as the production cost does not exceed the sale value of the product. US investment in Mexico will increase due to certainty of the value the peso and the higher inflation rate of Mexico than that of US. Foreign exchange risk is minimized as investors are able to eliminate all ...

Question 1

The American economy is just making a comeback from the 2008 economic recession. The recession took the economy to its lowest point in 25 years. The recession arose from the housing bubble, which led to the eventual disintegration of the financial markets. The housing market caused the disintegration of the markets due to irresponsible activities by investors and financial institutions. The housing market is quite different from the stocks market hence; the circumstances that led to the recession involved a series of unique events. The housing industry involves risks that is quite complex to understand because people view houses as assets ...

Introduction

Banks are crucial in the current society as they operate payment systems and provide financial intermediation. As business corporations, they lend or invest the money people deposit to create profit. Consequently, banks finance entrepreneurs and business people that drive the economy. The US has a complex banking system that has been improving for centuries. In 1913, it founded the Federal Reserve System and proceeded to open twelve regional reserve banks that were to be coordinated from Washington. It is crucial to understand the American banking system. Therefore, explaining aspects of the Federal Reserve and the functioning of the US banking ...

1.0 Introduction `According to Barbone et al. (2009) all members States of the European Union are also members of the Economic and monetary Union (EMU). Barbone et al. (2009) further states that the member states coordinate their policy-making in support for the economic objectives of the European Union (EU). Nonetheless, there are some member states that have gone further to adopting a single currency (Euro) (Barbone et al., 2009). They are the member states that comprise of the Euro area. Euro, according to Bekaert (2010) is a single currency that has been adopted by 19 European states that make up ...

In this section, I will provide a comparison of the inflation rate and economic growth of Belgium and the Eurozone. The inflation rate is defined as the percentage change in the price index from the preceding period. It captures the rate of change of prices calculated on a monthly or annual basis. The data on the inflation rate for Belgium and the Eurozone are presented below which I obtained from the news release of Eurostat (2013).

Meanwhile, economic growth is defined as the increase in the capacity of the economy to produce goods and services, compared from one period to another. ...

The Maastricht Treaty launched the European Monetary Union in the year 1992. The union comprised of two parts, which included the creation of euro the common currency and creation of the European Central Bank, which coordinates all monetary policies in the Eurozone. The treaty also created the rules for countries willing to join the union. The other element of the treaty was the national central banks of the 16 member countries. European Monetary Union creation has led to price stability and proper management of public finances (McKay Volz & Wolfinger 2011).The final phase of the single currency introduction ...

Introduction

“Billions over Baghdad” is an investigation report, prepared by Vanity Fair contributing editors Donald Barlett and James Steele, published in the October 2007 edition of the magazine. The report exposes how those billions of dollars that flew from Federal Reserve Bank of New York to the War Land of Iraq in the name of financial assistance and human aid, get disappeared as if these haven’t even exist. The incompetence of US officials overseeing the entire matter, the mismanaged transfer to the local bodies and the corrupt and greedy contractors and ghost employees made the entire game possible. ...

Discussion 1

Basing my argument on e-Activity trade agreement helps the U.S. economy. A trade agreement refers to a contractual consensus between two or more countries on the terms of trade that will exist between them. These agreements facilitate the formation of trade unions, and in most cases, tariffs taxes and trade pacts are loosened for all countries in the union. In the U.S, trade agreements will increase the flow of output because of low cost. In addition, the country will be exposed to a wide market subjected to low tariffs. Although the U.S will lose revenues because of low trade tariffs, it ...

In small economies such as Ireland, the traded sector is normally the leading sector for any economic development. In any bid to resurrect the economy from the depression which we have recently experienced, all reforms are aimed to surge the private sector so that the population can be able sustain itself.

The government of Ireland in their efforts to resurrect the economy has been working with the IMF and the EU in making the progress on the European policy reforms including the banking union which is very critical to the European and global confidence. The government negotiated with the ...

Abnormal returns refers to the excess returns that are generated by an investment over and above the expected return. Abnormal returns are positive if the actual returns are higher than the expected and negative if the actual returns are lower than the expected returns. This section seeks to compare the pre merger and post merger abnormal returns of the Access Bank of Nigeria. It also seeks to analyze how abnormal returns relate to mergers and acquisition.

In July 2004, the Central Bank of Nigeria (CBN) announced a new bank policy on the minimum paid-up capital requirement of banks in Nigeria. ...

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 ...

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 ...

Abstract

A regional bank, XYZ Bank, has decided to open an office overseas for serving those businesses that are expanding internationally. India has been chosen as a large financial centre that is believed to help in increasing customer base and expand business. The various factors favourable for investing in India are its political stability, federal legal system, availability of managerial and technical skills, good infrastructure, favourable economic policies and relaxation of restrictions in banking sector. However, some key challenges are cultural diversity, need of legal expertise in opening a wholly owned subsidiary and regulatory restrictions in banking sector. In spite of the ...

Abstract

This paper has identified articles in www.munKNEE.com by, Lorimer Wilson. It has analyzed the same and presented out the findings. First it presents the general economic principles associated with the article; this is followed by identification of the macroeconomic indices which are also examined into details. A discussion of the indices is followed by possible decisions or forecast that could done under each scenarios.

According to www.munKNEE.com by Loimer, some of the general economic that would relate to the article include but not limited to; a) The Phillips curve; the higher the rate of unemployment the higher is the ...

Introduction

The monetary policy of Colombia has undergone numerous changes from 1994 to 2014. The primary purpose for doing so is to target inflation and stabilize the financial status of the country. For this object, state agencies and other monitoring authorities had occasionally evaluated the response of such policy in relation to various financial variables. Although there is not any specific and explicit target regarding real or nominal exchange rates and the monetary policy has to rely upon mainly on the variation of short-term exchange rates. Therefore, in an open economy like Colombia, exchange rates are considered as the most ...

International Finance Trilemma

After 2007-2012 global economy recessions, many nations are striving to sustain their economy stability in the efforts of meeting the respective governments and citizens’ fundamental needs. Primarily, Trilemma of international finance hold that a country or nation cannot concurrently peg the exchange rate, maintain the independent monetary policy and permit free financial flows cross-borders (Feenstra & Taylor, 2008). International finance Trilemma states that under no given scenario that a country will enjoy steady foreign exchange rates, capital mobility and monetary policy that is independent. Based on international finance Trilemma, the central bank is often tasked to ensure that the economy is stable ...

The US Subprime mortgage crisis was a banking and financial emergency situation that led to a recession not only in the US but spread to many parts of the world. The disastrous effects of a crisis in the domestic subprime market on the rest of the world beg questions about the interconnectability and interdependence of the international economy as well as the financial institutions. The international financial crisis also revealed how vulnerable the global financial system was. Not only did the subprime crisis have a direct effect on global markets and countries that held a huge number of US mortgage backed securities and were ...

Introduction

Interest rate, especially the repo and reverse repo rate set by the Reserve Bank of India (RBI) have a profound effect on the value of real estate like any other investment vehicle. Because of great influence of the interest rate on an individual’s ability to purchase houses by increasing or decreasing the cost of the total mortgage amount, many people assume that interest is the only factor in real estate valuation. However, this assumption is not true. Interest rate definitely plays a big role in determining the housing prices, but it is not the only factor influencing the price of a ...

In the financing market, there is an important need to balance the powers between lenders and borrowers. In this market, the borrowers are in a relatively weak position to negotiate the interest rates of their loans, being the party in need. Lenders, in accordance to the law of supply and demand, can strategically withhold money supply to increase demand and interest rates. Historically, government regulators ensured, through usury laws, that the consumers were protected against financial predators (Bowsher, 1974). However, the current trend in the financing market has moved steadily towards loosening the usury laws and allowing the markets to ...

Introduction

Technology forms a central part of our day to day lives. Many human and mechanical activities have been taken over and made more efficient and easy to perform. Communication is among the areas significantly impacted by continuous technological advances achieved by the human race. These communication advances have enabled the provision of mobile money transfer and banking services. Mobile banking and money transfer provides a platform for handset owners to transact and bank through their phones . Nano-Tech will a business based in the State of Georgia, USA that provides an independent platform through which users can transact and do business via their ...

Chapter 10

Question#1: Use Keynesian cross to explain why fiscal policy has a multiplied effect on national income. Answer: The equation for calculation of national income under Keynesian model is Y=C+I+G+(X-M). In this formula, the Y denotes national income, C denotes level of consumption, I denote level of investment done in the economy, G denotes government’s expenditure, X denotes imports, and M denotes imports of an economy. With the help of this formula, the governments drive fiscal policies for the economy. With the help of this equation, it has been said by Keynes himself that when the ...

Russia is vulnerable to disruptive terms of trade because of its dependency on oil. Because of fluctuating oil prices, sluggish domestic demands, weak external environment and high rate of inflation, Russia’s economic growth declined in the year 2012 to 3.4 percent, and it is projected to be constant in 2013. Capital outflows in the Russia are expected to increase while debt ratios are expected to be favorable. Russia is a large size economy and its Gross Domestic Product (GDP) growth rate is 3.4 percent. The adjusted dollar terms of the GDP, purchasing power and income per capita is $ ...

The foreign currency is usually held country's central banks and other financial institutions. This currency is used to pay the international debt and trade obligation or to influence the domestic exchange rate. In the international trade of the commodities such as the gold and oil are priced and measured in using the reserved currency. This contributes to the holding of the currency by other countries for the exchange of the products. The holding of such currency reserves helps in the exchange rates risks reduction. The purchase of the product and good is done in the manner that has ...

Business report

Financial repression can be seen in many countries. The concept of financial repression was introduced in 1973 by Stanford economists Edward S. Shaw and Ronald I. McKinnon. The term financial repression means a government policy which aims at lowering interest rates and restricting capital movements. The goal of such government policy, which concerns monetary policy, is to reduce the government debt. Such government measurements can be defined as “stealth tax” (Polin 3). The long-term goal of such measurements is to reduce unemployment in the country and to spur the economic growth. It can be said, that such measurements can be ...

- Introduction The report is the second part of the SIM and Statistical arbitrage assignment. This report describes the process which has been done in the first part. It includes the collecting of the necessary information and data, a determination of the stocks, analysis of this data and the obtained results. - Stocks Analyzed

The average return of News Corporation is higher than the average return of Commonwealth Bank of Australia. The standard deviation of the first one is lower than the standard deviation of the second company. Therefore, the stock of the News Corporation is more efficient ...

- Introduction The report describes the process of the analysis of two stocks which has been done using the Single Index Model. It includes collecting and sorting the data, analysis this data using the SIM and regression analysis and the explanation and the evaluation of the results. The findings are useful for decision making in the financial planning. - Stocks Analyzed The table above contains the information about two analyzed stocks: the company name, stock code, relevant sector, the average return and the standard deviation of the return. Last two points have been computed using the ...

Introduction

Banking, financial, and even insurance-issuing institutions were badly hit by the global financial crisis that happened in 2007 to 2008. It created a serious domino effect that eventually took its toll on the U.S. Federal Government. The struggling dollar and U.S. economy—the world’s largest economy in terms of GDP, led to a serious wave of financial and stock market corrections that were felt globally, especially in countries whose economy is largely dependent on U.S. commodity and financial supply and consumption. The ultimate effect of the global financial crisis of 2009 was an increased uncertainty and negativity in the financial ...

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 ...

Gross Domestic Product:

Gross Domestic Product, usually abbreviated as ‘GDP’ is the total amount of goods and services produced in an economy during a given period of time. GDP is also one of the popular economic data source, used for the purpose of future forecasting of economic trends in a nation. Apart from future forecasting, GDP is also used to compare growth between two or more nations. For Instance, if during 2013, GDP of Canada is 5.6% and of United States is 6%, this indicates that the US economy has higher growth.

Real Gross Domestic Product:

Real GDP is a macro-economic measurement indicator, which accounts for total value of ...