Essays on Treasury

External Threats

Table of Contents Treasury Wine Estates (External Threats) 3 Types of External Threats 3 Wine production model 3 Economic threats 4 Competition and Competitors 4 Technological level 4 Political factors 5 International Environment 5 External Threats Affecting Treasury Wine Estates 5 Technology 5 Global Operations and Weather patterns 7 Research and Development 8 Competition in the Market 9 Political decisions and environmental regulations 9 References 11

Treasury Wine Estates ( ...

The United States is a federal country that has a large economy as a result of the fast-economic resources found in it’s over fifty states. In order to achieve continued economic stability, the United States has put in place well structured systems and programs that guide its policy on revenue collection, government expenditure and other monetary policies. This has been done carefully to grant the semi-autonomy status of its sates a clean bill of health. It is a fact that the monetary policy enshrined in the United States constitution and the mandate given to various constitutional officers play a great role in influencing and ...

Treasury Wine Estates now has four regional business units including: America, Australia and New Zealand, Asia and Europe. Regional business units in Europe also include units in Middle East and African regions. In total the company is supplying its wine to 16 different countries across the globe. The company has production units in Australia, USA, Italy and New Zealand. Separated from Foster’s group in the year 2011, Treasury Wine Estates has successfully completed its first year with a net profit of more than $135.5 billion. According to the director of the Treasury Wine Estates, “2013 presents some challenges ...

Employment at the US Treasury Department

The Treasury Department, one of the fundamental departments of the United States, is served with the functions that entail regulation of domestic monetary services under the authorship of Timothy F. Geithner (the current secretary). For instance, the Treasury is involved in collections and disbursement of payments to the general public and managing federal funds. Most importantly, the treasury is served with the function of producing paper currency and coins done by The Bureau of Engraving and Printing and the United States Mint respectively (Misiroglu, 2003). Worth noting is the fact that duties if the US Treasury Department goes beyond ...

U.S. Treasury securities are the governemnt securities issued by the U.S. Treasury acting through the Bureau of its public debt. This is a financing instrument of government debt. There are four types of treasury securities:

Short-term Treasury bills, (Bills)

The medium-term treasury bonds, (Notes) Long-term Treasury bonds, (Bonds) Treasury inflation-protected bonds (TIPS). Quote information Treasury securities can be found in the Market Data Center (subsection Bonds, Rates & Credit Markets) of the newspaper The Wall Street Journal. In this paper we will consider the U.S. Treasury Bonds. The information, which was taken from Bloomberg Journal is below Let’ ...

The Promotion of Mixed Income Neighborhoods in Hollywood, California

Chapter I: Introduction The facts are impossible to ignore: focusing on places, health and walkability requires increased public transit infrastructure, which creates new jobs, enlivens neighborhoods, creates local business opportunities and connects communities, both vulnerable and thriving, to vital amenities and resources. (Raphael &Espiau, 2010, par. 9) Transit-oriented development (TOD) is a neighborhood development plan focusing on easy access to major transit stops. The Federal Transit Administration (FTA) defined TOD during the 1990s when undertaking a project consisting of initiatives to promote livable communities: “Transit-oriented communities are characterized by design and development patterns that are conducive to the ...

Abstract

The Nelson – Siegel – Svensson model is one of the preferred methods by which investors determine the value of bonds in the long run and thus make informed guesses as to the viability of each investment option. It is an accurate method of prediction when an investment portfolio needs to be set up. In this paper, by using the Nelson – Siegel – Svensson process, an attempt will be made to inform investors like to the best option for a fixed income portfolio. The paper would demonstrate how the process is to be used and applied to the data related to treasury bonds ...

Executive Overview

Total Asset Relief Program (TARP) is a program by the United States government geared towards purchasing of assets and equity from various financial institutions with the aim of strengthening its financial sector. This program was signed into law by the United States president George W. Bush in 2008. During that year, the government came up with this program to address the subprime mortgage crisis in the state. Initially, TARP authorized an expenditure of $ 600 billion. However, the mount was reduced to $475 courtesy of Dodd-Frank Wall Street Reform and Consumer Protection Act. The stimulus program of Total Asset Relief Program ( ...

Balance Sheet:a)What components of stockholders' equity do each of the companies disclose?

Referring to the balance sheet of both the companies, below is the information relating to stockholder equity: Meiji Holdings: The company during 2013, has total stockholder equity of $3242.84 Million with the components of stockholder equity as follows: - Common Stock(Authorized and Issued) - Capital Surplus - Retained Earnings - Treasury Stock(at cost)

General Mills Inc:

Noted from the balance sheet of the company for the year 2013, the total stockholder equity of the company was reported to be $3242.84 Million with the component of stockholder equity as follows: - Common Stock(par ...

Fixed Income Securities: Basic Concepts

Accrued Interests: When a bond trades between two coupon dates, the seller is entitled to receive any interest earned from the previous coupon date through the date of the sale. This differential amount is known as accrued interests and is payable by the buyer(new owner) of bond.

Clean Price:

Clean Price is the price of the coupon bond which the buyer(new owner) of the bond has to pay excluding any accrued interest amount.

Dirty Price:

Dirty Price is the price of the coupon bond which the buyer(new owner) of the bond has to pay and includes accrued interest on the ...

The wine Industry in Australia has significantly grown from minute plantings to a full fletched industry globally recognized for innovation, depth, and quality. In particular, Australia is over and over again one of the worlds’s best producing economies. Every outstanding wine style is found in Australia. The Australian wine industry has performed remarkably in the recent years. In the mid 1980s, Australia was a net importer of wine. Currently, the country exports 32% of total production and holds 2.4% of the world wine market. The profitability of the industry has seen many companies enter the industry. One of such ...

Social security is an agenda which is run by many governments in the world that encompasses the unemployed, the old age, the disabled, and the insurance survivors. In the United States, social security programs are maintained by the federal government. Beneficiaries pay compulsory monthly or annual payments, in their active years of service, through employee or employer groups. It can also be defined as the provision to the public with economic and social support through pensions or other financial aids (U.S. Department Of The Treasury). In the case of social security retirement income, which is received by beneficiaries after ...

Introduction

The budget deficit and the amount of public debt is an important indicator of an economy. This area of concern has traditionally received much attention. The budget process involves the balancing of public revenues and expenditures. Budget imbalance means quantitative disparity between income and expenditure budget. The excess of expenditure over budget revenues is called the “budget deficit.” The unbalanced budget could lead to the emergence of a surplus, ie excess of income over the expenditure. However, in practice, almost all countries now, there is significant scope for excess government expenditure over income. The result is a rapid increase in budget ...

On the brink: Inside the race to stop the collapse of the global financial system is an account of the events that took place prior to and during the global financial crisis and the federal governments’ efforts to save some of the major banks in the united states. It zips through Paulson’s career (with a political stint as an aide in the Nixon White House) and then concentrates on his extraordinary 30 months in treasury. When Hank Paulson (the then chairman and Chief Executive Officer at Goldman Sachs) joined the Bush administration as the treasury secretary of state July ...

Introduction

Boeing Company is renown as an American defense corporation, as well as, a multinational aerospace. The company was founded in the year 1916 by William E Boeing. Over the years, the company has expanded through mergers and acquisition. It is renowned as the best aerospace company in the world, based on its financial performance both financially and in the stock market. The company is made up of several subunits ranging from commercial service units for defense, technology among others. The company publishes its audited financial statements by the end of every accounting period. Similarly, the company issues various types of ...

Economics of Global Money Markets

When money became a commodity, money market became part of the financial markets for the reasons that assets that are involved in short-term buying, borrowing, selling and lending with the original maturities of about one year or less. The trade in money markets is carried out over the counter and as such it is wholesale. There are various instruments that exist and they include deposits, treasury bills, bankers’ acceptances, certificates of deposit, bills of exchange, commercial paper, federal funds, repurchase agreements and asset backed securities. This provides a funding that is liquid for the global financial system. Capital markets and money ...

Arguably, 2000-2009 was the most difficult moment in the world economy. The financial crisis that took place in United States and the world became the worst financial munch to ever occur in the world. The financial crisis took place in the late 2008 at a remarkably speed, whereby most economic factors were fully disturbed. Mortgage-related securities, which had fully spread in United States as well as global financial systems collapsed. As a matter of fact, this crisis undermined several largest and renowned financial institutions in United states and the world. Additionally, the crisis damaged stronger economies and financial systems in the ...

Throughout history, financial crises and economic recessions have taken place in different parts of the world. After the collapse of the Soviet Union, the United States of America emerged as a force to reckon with in the global market. The emergence of the United States of America as a financial power house is attributed to the liberalization of the markets and the focus on the development of the IT and communication sector. Given the pivotal role of financial epicenters in global financial markets, a crisis in any of the financial epicenters can have devastating effects. In 2008-2009, there was a financial crisis that ...

Midland Energy is a global company, which operates in oil and gas exploration refining and marketing (R&M), and production (E&P) and petrochemicals sectors. The major objective of the financial strategy of midland is to invest in the projects that are valuable, to achieve an optimal structure for the capital, to fund the substation growth and repurchasing of shares that are undervalued. In addition, it is necessary to calculate the cost of capital if midland wants to meet all the objectives. There is different level of risks for all the divisions of the midland, therefore a single corporate WACC cannot be ...

Introduction

Whatever persuasive the financiers’ statements regarding the controlled and secured national debt might be, any credits do not mean that you have been given a gift which is not expected to be returned. The nature of the credit is that it involves a paying back procedure or “repayment” as it is referred to in the economic system. I am deeply convinced that huge and growing public debts do not bring anything perpetual to the economy – it is just a delayed, “buried” bankruptcy challenge. The figures illustrate that the more available credits were to people and the more a country’s standard of living ...

Introduction

Globalization and other factors are driving international businesses and trade. In that respect, multinationals are increasingly becoming subject to factors that are not only born in their home country, but also from host countries as well as markets within which they sell their products. One such factor is the exchange rate that determines the value of the payments that exporters receive for their international sales as well as the value those importers pays for their purchases from foreign markets. In that view, it is becoming crucial for managers and business leadership to establish suitable strategies for managing the risks ...

U.S. Department of the Treasury shows us that the value of risk-free rate was 3.05% on May 30, 2014 (U.S. Department of the Treasury, 2014). US Treasury bills’ yields were chosen as the source of risk-free rate, because virtually these financial instruments do not have any risks (except for sovereign). They are backed up by the Government of the USA. Therefore, even if default occurs, there is always a possibility to print out more money. As for the maturity of US T-bills it should coincide with the maturity of financial instrument that is considered (in this case IBM stocks), which ...

Abstract

The US Federal Reserve and the European Central bank perform the function of formulating the monetary policy of US and Euro zone. The banks use different tools to formulate the policy as discussed in the paper. The structures of these banks are analyzed. The two banks have recently adopted different security policies that have caused the US treasury to run out of funds. Federal Reserve together with other banks plays a role of controlling the money supply, and this means that the banks shape the financial system of the world. A policy adopted to delay dividends shows that these banks ...

Drowning in Debt: How Does the U.S. Solve its Debt Crisis?

Scott Walterhoefer Abstract Can the United States solve its debt crisis? That is the daunting question that currently confronts our nation and the manner in which the “powers that be” attempt to deal with this problem will dictate the political and economic landscape for the foreseeable future. The sheer size of this debt (roughly $16 trillion) is so massive and seemingly out of control that it is nearly impossible to fathom. This paper will examine this debt and the factors that caused its exponential rise over ...

International Economic Policy-Making of the EU and the US

Foreign economic policy-making varies between regions given the size of their economy and the nature of their foreign policy mechanism in the international arena. Policies would take into consideration political interests and economic competence in the globe, while it can easily blend with domestic policy. In the case of the European Union, the Union represents its member countries in creating foreign policies that would not just cover their international policies but also their domestic policies: may it be for political or economic reasons. Unlike the United States, which only has to represent one state in the international market, the ...

Introduction: History of the National Debt

A debt crisis is a national problem of countries with regards to their ability to repay borrowed funds. It deals with national economies, national finances or budget and international loans. The meaning of a "debt crisis" has changed over time. The main definition comes from the main financial institutions such as Standard and Poor's or the International Monetary Fund (IMF). Basically, a debt crisis is defined as an occurrence where a national government cannot pay its debts and it the process, asks some assistance (Zuckerman, 2011).

The US national debt represents an "existential threat" to its federal finances. It evidences the country’s ...

The gold standard is a monetary system which suggests pegging of economic unit of account with fixed mass of gold. For understanding the meaning of the gold standard a little digression in history is needed.

The United States switched to the gold standard in 1834 because of silver currency and bank notes crisis. The price for gold in the United States was set at $20.67 per ounce that year. The majority of the countries adhered to gold in the period called Classical Gold Standard from 1880 to 1914. This was the period of unprecedented economic growth and free trade in the ...

Introduction

The state or local finance is a complex term that entails the state tactics, trend and the capabilities of handling the financial issues that face the United States are analyzed in the article. On similar account, the States financial budget implementation through its economic programs and activities are indicated. Thus, financial statements and reports that are analyzed within the local or national scope within America serves as a turning point since it intends to support the objectives of the State previously outlined (U.S Department of The

Treasury, 2014). Nevertheless, the extensive surveys done by the financial researchers point out the components ...

The crisis of 2008 was the moment of truth for global economics pointing out new possibilities for developed countries to challenge their financial system. This world phenomena was one of the most discussed and controversial during the recent decade. Crisis events, which we observed in American financial system in the second quarter of 2008 affected the majority of countries all over the world and were so drastic and huge while measures of regulators stabilizing the situation so unprecedented, that it allowed to question the effectiveness and resiliency of American financial capitalistic model on global world market (Ershov, 2010). Some ...

There exists a difference between federal government’s debt and deficit and most people tend to confuse these two. The differences are outlined as below. Federal government’s deficit refers to a situation whereby any government spending surpasses its income that comes from tax revenues collected from the citizens and other sources by any amount. Government deficit has some effects in a country’s economy. For example, it causes inflation which can be described to as the increase of the amount of money in circulation resulting to high pricing of goods. Federal government’s debt on the other hand refers to a given ...

- Introduction This report presents an assessment of two stocks, Westpac and Whitehaven Coal Ordinary, in terms of their stock conditions and prices. Regression model has been used to critically analyze the co-relation between the returns of both the Companies and relationship of these variables with other components like Australian interest rates and yield and treasury bills has been studied. - Stocks Analyzed Of the two stocks, in my opinion, Westpac is most inefficiently priced. The reasons for this assessment may be the following two observations: - Lesser return: A lesser return signifies that the ...

Capital budgeting

Weighted average cost of capital is the least rate of return that investors expect. It is computed by obtaining the component cost of each source of capital which is then multiplied by the weight or the proportion of the source of capital in the whole capital structure. The weighted capital component costs are added to obtain the WACC. WACC is used as the discounting rate of projects to determine the NPV of an investment project. A positive NPV will be obtained if the rate of return on an investment is higher than the weighted average cost of capital. This ...

Answer 1)

Bonds are an attractive investment assets and are appealing for any investor because of fixed interest income option which is not available in stocks. Furthermore, certain bonds as Treasury and Federal Agency bonds also offers tax advantages to the investor. Thus, such distinctive feature makes bonds an appealing investment class.

Some of the bonds which are currently available are:

- Treasury Bonds - Agency Bonds - Municipal Bonds - Corporate Bonds

Below are some common investment objectives that can be fulfilled through investment in Bonds:

i) Fixed Income Security: Since bonds are fixed income securities, they are known to offer a certain interest income depending on the type of bond purchased by the investor. This feature is not available in ...

Introduction

The report includes a speculative summary which is highly rendered by the project submitter. The report includes the rules and exemption to work with an accommodated job in United Kingdom. The summary and the report includes the rules and regulations which are necessary as per working in the UK company, and it also discuss about the Tax redemption charges as per the incomes basis of an individual. The report even includes the taxation of any employee working in a UK based company. The rules and regulations are also jotted down to make the project analyst know about the main factual finding ...

User fees are very important fees to the local government. They form the largest portion of the total percentage revenues collected by local authorities. There are different kinds of user fees depending on the purpose they are collected. There are four main user fees which are the highest of other user fees. In the Alabama state, these fees are; government entities and tax exempt user fees, chief counsel user fees, advance art determination fees and the installment agreement fees.

The government entity and tax exempt user fees are levied on organizations that exempt and Employee Plans. The fees are ...

Introduction

Capital structure management is a crucial aspect of effective cost control. That is because the structure determines a company’s cost, hence determining its performance and ability to create wealth for its shareholders. In that view, this analysis seeks to demonstrate how the structures influence companies’ performance as well as decision making. To achieve that, the analysis evaluates three companies in Hospitality industry. In that respect, this report begins with an overview of the companies’ debt structure and how it influences the companies’ cost of capital. That is followed by overview of how the companies’ long term financing polices as well ...

Company Analysis: Advanced Micro Devices (AMD) Limited

About the paper The paper is commissioned to provide an extensive discussion about the liquidity, profitability and debt situation of Advanced Micro Devices (AMD) Limited. While the liquidity analysis shall be sourced for unearthing the trend analysis for the past three years, the discussion on the debt situation, and how the bonds of the company are performing, is mechanized to assist the potential investors in taking an investment decision, i.e. whether the ongoing performance of the bond justifies investment in the bonds of the company or not.

About the company

Founded in the year 1969, Advanced Micro Devices is an American ...

- 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 ...

It may be a mere co-incidence or accidental turn of events that the theme, concept, content, genre and approach of two generically different kinds of books can have so much of close association. In order to appreciate this feature, an analytical study of the following two books was made.

1: Technical Book:

- Description: A supplement for undergraduate and Graduate Investments Courses. - Publisher: Prentice Hall, 5th Edition (January 8, 2013) - Language: English - Paperback: 160 Pages 2. Non-fiction Book - Publisher: W.W. Norton & Company - Contents: 213 pages - Language: English 3. Article ...

Introduction

The report is being prepared with the objective of discussing my portfolio strategy where according to my risk tolerance(high), an amount of $50000 will be allocated amongst various asset classes. In addition to the risk tolerance, creating a well-diversified portfolio will be on the top of my preference list. I am sure that with the amount of knowledge and traits relating to portfolio management, I will be able to create a balanced portfolio for myself that will help me to earn 12-13% return on per annum basis.

Investment Strategy and Risk Tolerance

The golden idea in the world of the portfolio management ‘’Never put all ...

What led the British to occupy Egypt in 1882? Besides the fact that it was the result of colonial expansion, and the spirit of colonialism was fueled by British imperial hegemony, what benefits did Egypt have financially for England? In this paper, the factors that took place before the British occupation, the actual occupation itself, and its aftermath, will be discussed from the point of view of economic history. Cotton, the American Civil War, an overspending khedive, the Suez canal construction, jockeying Europeans countries, and the cosmopolitan makeup of 19th century Egypt all play a part in the story. In ...

Scenario 1

Since Johnson Corporation repurchased the shares for purposes of resale and not for constructive retirement, they are treated as treasury shares. Gain on sale of treasury stock is treated as a capital surplus. The Controller of Johnson Co. should credit the amount in the capital surplus account. On the date of repurchase of these shares, an entry is made to reduce capital by the cost incurred by the firm to repurchase the shares.

The Controller should make the following entry:

DR Treasury Stock 700 CR: Capital Surplus/ 700 Specific reference and associated literature ASC 505-30 states the guideline for the treatment of gains on ...

Answer 1)

a)History of Quantitative Easing: Quantitative Easing, also known as Open market Operations is one of the conventional method of Credit Control which is followed by central/federal banks to stimulate economic growth and to circumvent the banking system. The history of this method credit control has two phases i.e pre 2007 and post 2007 period. (Parkin, 2011) i)Pre-2007 Period: The very first use of Quantitative technique of Credit Control is attributed to Bank of Japan on March 19th , 2001. The Bank authorities before accepting this method, rejected the efficiency of QE method and rejected its use for ...

Abstract

This research paper was had one objective: to investigate the circumstances that saw the Kuwait Gulf Bank survive a financial crisis. Kuwait Gulf Bank is one of the largest financial institutions in Kuwait and, therefore, one of Kuwait’s major lenders. Before the financial crisis, the Bank had been very successful in its operations. It first became operational in 1961 after having been established in Fahad al-Sahem Street the previous year. Its headquarters were, however, later moved to Abdulla al-Sahem Street three years later. In the years following that, it has continued to grow and has been able to finance ...

The Importance of Stakeholder Management in Delivering Successful Projects

INTRODUCTION In the contemporary business environment, managing projects with diverse stakeholders is normality that some do not fully optimize, because of lack or of missing knowledge and experience in stakeholder management. This essay emphasizes the necessity of applying effective stakeholder management in project management processes for achieving successful projects. The essay describes the stakeholder management roles, challenges, and skills, illustrating four case studies that dealt with stakeholder management in their project management processes. The analysis of the four case studies increases the understanding on how stakeholder management applied to project management processes can lead to a successful or to a ...

This film dramatized the American economic collapse of 2008. The collapse, and the subsequent "government bailout", was precipitated by a number of factors. As pointed out in the actual drama of "Too Big to Fail", the combination of unregulated banking practices and lax requirements for consumer credit created an economic meltdown that had worldwide repercussions. During the short period that led up to the so-called TARP (Troubled Asset Relief Program), colossal mortgage bankers were in the practice of underwriting mortgages for both commercial and residential properties, such as houses, condos, and retail space. Mortgage insurance companies, like the behemoth ...

Before the global financial crisis that rocked the entire globe, Japan had put in place a very robust financial system that according to economic experts was to insulate Japan from the pangs of global financial collapse. However, despite this, Japan was hardly hit by the global financial crisis significantly shrinking its economy (Zheng, 46). In the year 2007 before the peak of the economic recession lead economists pointed out that Japan was immune, the impacts of the US subprime loan problem, owing to the fact that Japan had limited exposure to “toxic” assets. In fact, the Japanese banking sector was ...

The governments Wall Street bailout was totally justified. There is a law that was put to act in the US commonly referred to as the emergency economic stabilization act of 2008. It is also known as the bailout of the US financial system. The law was enacted as an immediate response to the subprime mortgage crisis which allowed the Secretary of the Treasury in the United States to spend 700 billion dollars in purchasing distressed assets. The cash would be supplied directly to the banks. The main aim of the assets purchase was to inject capital directly to the banks ...

Complexities of U.S. Financial System .University.. .professor.. U.S. Financial System U.S. Financial System is made up of numerous different markets for diverse products offered on a various trading platforms and exchanges. Among the many products traded are stocks or equities, fixed income securities, foreign exchange, commodities, derivatives etc. Financial market helps to keep the wheels of the economy moving by allowing individuals and businesses either to invest their excess funds in different products or to sell their products to raise cash when they want to. That is the market offers liquidity- the ease of buying and ...

Research paper

Introduction Being a study of the economy as a whole, and considering aggregated indexes as GDP, unemployment rates and price indices, the macroeconomics depicts an overall state of the current economic situation.

The debt ceiling

Even though, after the Great Recession of 2008, the U.S government is desperately trying to stabilize the situation using various fiscal and monetary measures, it still fails to spend less money, thus borrowing more and more from its creditors every year. Then it comes to the question of raising the debt ceiling in order to borrow more, and this procedure is known for quite some time now, but ...

- How much would you pay for this bond today? Take into consideration your own personal risk preferences, interest rates, inflation, and the probability your company will not be able to pay you back in one year. Note: You do not need any math equations for this part; just explain how much you would personally pay for a $100,000 bond from this company. Kroger Inc. is a US based retail company which mainly operates in food and grocery retailing. The company is doing very well in recent years growing at a rate of 4% YOY. Kroger wants to float some ...

It is a universal phenomenon that when you have power you can control the entire universe. Goldman Sachs as an investment bank has its origin in the United States and has influenced the business world as well as strongly spreading its tentacles to influence the political orientation of the United States. In the recent past, the company has been viewed just as an entity having no interests of the people in the United States and abroad. The company has been placed at a very advantageous position owing to the closeness in its continued deals with the US government. It has ...

The Wells Fargo bank is an American financial institutions and it offers its services across the universe. The bank is rated the fourth biggest in the United States in terms of assets and is considered the largest bank in a capitalization aspect. It offers services of home mortgage, debit cards and bank deposits and it’s rated the 2nd largest in this perspective. The bank has its headquarters at San Francisco in California. In the countries where the bank offers its services, it has also major hub-quarters that are t6he centers to control its operations in the country. In the ...

How and Why Savings Bonds Have Been Used in America.

Introduction The history of savings bonds in the American stocks market dates back to the days of Henry Morgenthau, Jr., who was the Secretary of the Treasury in the year 1935. Earlier before the times of Henry, the U.S. government had also issued bonds especially to finance the revolutionary war of 1776. The savings bonds were mainly issued to institutional investors as well as small investors. The U.S. government was not the only one in this field of issuing savings, other countries like Canada also did the same in terms of public borrowing (Daniels, 2001). This essay expounds ...

Introduction, Background of the Author and the Book

In order to give an intelligent critique of the book “In Fed We Trust”, by David Wessel (2009), and clearly understand his arguments, and points surrounding the success of failure of Quantitative Easing 3 (QE3), we must first set a background and vividly understand the author “David Wessel”. The information posted on the Wall Street Journal’s website denotes that:

David Wessel is economics editor for The Wall Street Journal and writes the Capital column, a weekly look at the economy and forces shaping living standards around the world. He is responsible for overseeing coverage of the Fed and the Journal’ ...

Introduction

In the United States, the Federal Reserve System is charged with regulating the country’s monetary policy. The system was implemented after leaders noted the deficiencies in the previous national banking system. The previous system had a currency that was inelastic and there were liquidity problems in the economy. There were a lot of financial panics in the economy caused by the inefficiencies in the system. A republican representative proposed the creation of a centralised banking system that would operate with a minimum level of government involvement. The Federal Reserve System was instituted in 1913. The system was able to solve three ...

Introduction

The economy is never steady and it never follows a predetermined course. There are various factors that influence the functioning of an economy and thereby force it to experience period of boom or recession. The various securities that are traded in these markets, whether government or private, also get influenced by these factors and experience fluctuations in their stock prices, in the case of shares, and in their yield, in the case of government bonds and securities. In most cases, it is easy to analyze and understand the cause behind the trend that emerge when one studies minutely the ups ...

In case, real GDP is lower than potential GPD expansionary policies are implemented in correcting contraction of business cycle. Expansionary Fiscal policy leads to increases in purchases by government, tax rate decrease and transfer payment increase to overcome contracting business cycle. Expansionary fiscal policy closes gap of recession, stimulates economy and decreases rate of unemployment.

Fiscal policy tools to stimulate economy are:

Government Purchases Expenditures done by government sector for services and final goods come under Government purchases. Government purchases are part of GDP bought by the government. Government purchases include heavy cost expenses like highway construction and aircraft clips carriers to smaller expenses like ...

Abstract

Communication plays a crucial role in our day to day life. It helps to create a relationship or destroy a relationship with the other party. Communication plays a vital role in problem solving and decision making. There are four main types of communication system. This includes passive communication, assertive communication, passive aggressive communication and aggressive communication. Aggressive communication and passive-aggressive communication are used where the individual is angry. On the other hand, passive communication and assertive communications types are used where an individual is in a happy mood. Problem solving and decision making in the case of passive and assertive communication system is easy ...

Interest rates are the monetary compensation or the cost of borrowing given to the lender(s) or supplier(s) of funds by the borrower(s) or demander(s) of funds or loans (CMU, 2010). The terms required returns and interest rates are similar in that the lender gets compensated for the funds they provide to the borrower. However, required returns are used when referring to equity instruments (investments) like common stock, and the interest rate is used when referring to debt instruments like bonds or bank loans. There are several factors that influence interest rates. They include inflation, risk ...