US rising debt level and current economic problems
US rising debt level and current economic problems
5 pages (1250 words)
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... US Rising Debt Level and Current Economic Problems A budget deficit exists where the total government expenditureexceeds the revenue of the government. Government deficit means that the excess money needed to finance the government budget will have to be borrowed from other countries or be financed from donations (Hubbard & O'Brien 2007). In the United States, the soaring budget deficit has resulted in an increase in the overall government debt. Budget deficit is expressed as a percentage of GDP. There are various reasons for having a budget deficit. According to the forecast of the organisation for economic cooperation and development (2011), the budget deficit for US is likely to increase to 10%...
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Financial Markets and Institutions
Financial Markets and Institutions
6 pages (1500 words)
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... MARKETS AND S of the Finance and Accounting Financial Markets and s Role and functions of the Financial Intermediaries A financial intermediary is any institution or organization that is able to move money from borrowers and savers. According to Allen and Gale (2000, chap 1), Financial intermediaries can be broadly classified into: deposit taking institutions such as banks, credit unions, savings and savings societies; Insurance schemes such as life insurance policies; investment ventures such as retirement benefits schemes and mutual funds. Financial intermediaries have played a major role the development and growth of the world’s economy. The financial institutions such as banks and other...
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Interest Rates and the Economy
Interest Rates and the Economy
6 pages (1500 words)
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... Rate and the Economy Introduction: The basic purpose of this paper is to understand the whether the notion that decrease the interest ratesin a country can help give wind to its flagging economy holds any truth or not It has been a generally accepted notion that interest rates are macroeconomic factors that can altered directly by governmental intervention and we need to determine that an economic factor that was so easily convertible could have such deep and direct effects on the economy or not and how much does its easy manipulation will play a part in the said channel to the macroeconomic factor. Finally, we would like to put this notion to rest whether unilaterally decreasing interest rates...
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Marginal cost
Marginal cost
6 pages (1750 words)
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... cost Introduction This paper seeks to explain to potential investors, the financial aspect of a business venture by use of; business forecasts methodology. When coming up with a business strategy, to present to potential investors, assumptions are listed that will be used in making financial data. The documents that I have used in this paper in to explain to potential investors about the business strategy are; cash budget, forecast income statement and a forecast balance sheet. These documents are the ones that I will use, to give a representation of how the business will run in the future, and how income will be of benefit, to the business. Assumptions used The balance sheet that I came up with co...
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Discuss the premise that cash is the essential commodity of a business, that cash lubricates the business and allows operation
Discuss the premise that cash is the 'essential commodity' of a business, that cash lubricates the business and allows operation
5 pages (1250 words)
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... Cash: An Essential Commodity of a Business Introduction Traditionally cash is considered as the lifeblood of a businessbecause survival of a business is impossible without an adequate flow of cash. From an accounting perspective, cash is just an asset that helps business to properly exist. According to Valentas, Rotstein and Singh, “cash is defined as the net flow of money into the firm after taxes are paid; it is the difference between money received from sales and money paid out for expenses and taxes” (Valentas et al., 539). In simple terms, cash is one of the essential elements needed for a business to grow and to achieve its long term objectives. Cash is particularly important for business...
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Money, Banking, and Financial Markets
Money, Banking, and Financial Markets
9 pages (2250 words)
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... Lecturer: Question Money and Banking Article Analysis Bank of Canada initiatives have started to bear fruits, and this is evidenced by the fact that the stock market is experiencing growth. On November 21st2014, the composite index of the Toronto Stock Exchange S&P/TSX rose by 35.95 points representing a 0.24% increase to close at 15,111.13 (The Globe and Mail Par P1). The index has increased by 268 points since last year that is equivalent to 11% (The Globe and Mail Par 2). Figure 1. The chart shows the growth of the S&P/TSX Index There are signs of more growth with the Central bank stepping up its efforts to ensure the growth is sustained. The global financial outlook is also fuelling growth in Ca...
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FINANCIAL CRISIS, HOME MORTGAGES, CREDIT MARKETS, FINANCIAL INSTITUTIONS, MORAL HAZARD, ADVERSE SELECTIONS,
FINANCIAL CRISIS, HOME MORTGAGES, CREDIT MARKETS, FINANCIAL INSTITUTIONS, MORAL HAZARD, ADVERSE SELECTIONS,
4 pages (1000 words)
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... Before the sub-prime crisis, investors were engaged in large scale borrowing of money, for purposes of building their homes. This borrowing was unsustainable, mainly because the housing industry was experiencing some unsustainable wages, and there was a high level of consumer debts. However, as the prices of houses rose, investors felt that they were getting richer (Read, 2009). The financial industry was encouraged into issuing out mortgages, mainly because they believed that housing prices normally appreciate in value. However, on a historical note, interest rates on mortgages could also go up. Majority of the subprime borrowers were caught unawares, and they were unable to pay off their monthly...
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(Some Finance Questions)
(Some Finance Questions)
2 pages (500 words)
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... 24 November Treasury Inflation Protected Securities (TIPs) TIPs is a treasury security to protect investors from the negative effects of inflation. TIPs is a unique asset class which is dollar denominated, inflation protected and backed by the Government (US Treasury) as a result considered as extremely low risk investment. The U.S Treasury has been issuing TIPs since 1997. The principal of TIPs increases with the inflation and decreases with deflation as the principal is tied to the consumer price index. However, on maturity the investor is guaranteed at least the original principal amount invested, thereby protecting from any deflationary situations. TIPs pay interest semi-annually at a fixed rate ...
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Financial Concepts and Their Applications
Financial Concepts and Their Applications
3 pages (750 words)
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... Header: Finance Concepts and their Application “Financial Concepts and Their Applications Module: Financial managers play animportant role in any organization. They are responsible for an organization’s financial resources. They are guardians of these funds and have a responsibility to invest these funds in a way that yields the highest possible return and at the same time providing liquidity to an organization. Good financial decision making can make or break an organization. Hence, the role of a financial manager is vital to any firm and they are the heart of an organization. Market prices are great indicators for a financial manager. They are usually signals that help the financial managers in...
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Guidance to Simmons Ltd
Guidance to Simmons Ltd
3 pages (750 words)
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... to Simmons Ltd 16/01 Guidance to Simmons Ltd Business operations are facilitated by organization’s resources in terms of its assets, which are further financed by either equity capital or the entity’s borrowings. Some of the examples of sources of business finance are through capital markets or through commercial banks. This paper seeks to offer an informed advice to Simmons Ltd. with respect to two sources of business finance, capital markets and commercial banks. The paper will explore possible merits and disadvantages of the two sources together with their associated legal implications towards a profound judgment. Capital markets and loans offered by commercial banks posse’s different features...
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MGM625-0903A-01 Applied Finance for Decision-Making - Phase 1 Individual Project 2

MGM625-0903A-01 Applied Finance for Decision-Making - Phase 1 Individual Project 2

2 pages (500 words)
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... Finance for Decision Making Look at Superiors balance sheet and analyze it. Be sure to focus on working capital, current ratio, short-term and long-term debt. End with a bulleted summary addressing the CFOs concerns as related to these areas. The balance sheet of Superior Living gives a clear idea of the company’s financial state over the three years. This report aims at analyzing the balance sheet with special focus on the working capital, current ratio, short–term and long-term debts, in order to identify potential issues and concerns. Working Capital: The working capital of the firm is the difference between the current assets and the current liabilities, in other words, the assets set aside by th...
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American unemployment and how it effects the economy

American unemployment and how it effects the economy

2 pages (500 words)
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... and the American Economy This essay examines the complicated relationship between American unemployment and the economy through an analysis of recent employment trends. At the beginning of February the unemployment rate dropped from 10 percent to 9.7 percent (Cook 2010). In a Newsweek article that considers these figures, Cook (2010) identified a number of causes for optimism. Cook discussed the positive correlation between jobs increased in health care, government, and retails fields, and indicated that the average work week increased to 33.9 hours. Another positive occurrence was that over the last three months the overall job loss rate has over 100% less than the rate 3 months before that. A Ne...
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CAPITAL FOR A PROFIT ORGANIZATION
CAPITAL FOR A PROFIT ORGANIZATION
2 pages (500 words)
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... for a Profit Organization Capital for a Profit Organization The existence of any given profitable organization depends on the amount of capital accumulated to fund the diverse business operations. Lack of having enough capital to finance the various business activities contributes to the failure of most profitable organizations. In all situations, adequate capital is vital in commencing a business organization, boost operations during a financial crisis and payment of employees (Chakravorty, 2013). In the current developed world, various sources of capital exist hence providing an ideal environment for the establishment and development of profitable companies. The chief sources of capital for any gi...
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Calculation
Calculation
4 pages (1000 words)
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... To Capital Budgeting Questions [Pick the Compute the net investment required to purchase the new ATM The net investment includes two major things 1. The investment made in the new ATM machine, which is $1,000,000 2. The Amount received from selling the old ATM machine at the existing market price. The selling amount is subject to taxes. Therefore the amount received is used after incorporating the taxes Therefore, the after tax amount received from selling the old ATM machine is then subtracted from the amount required to pay for the installation of new ATM machine will lead to the figure of Net Investment Net Investment= ...
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Assignment
Assignment
3 pages (750 words)
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... Why banks do not lend out reserves Monetary theorists claim that during the US Great depression, the government was abusing its power to print money. The Federal Reserve enlarged the US monetary base by 155 percent in a period of four years. There was a contraction in monetary base that caused a recession in 1937 as seen in the chart. After the recession ended and the economy was in recession, then it came the period of World War I. People believed that the World War could end the Great Depression. The increased monetary base led to increased levels of inflation that prolonged the Depression. This led to permanent contract of money supply in the economy. This inflicted a severe damage to the financia...
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Judicial Activism
Judicial Activism
3 pages (750 words)
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... Activism Judicial Activism The ideas presented by both legal luminaries Attorney General Edwin Meese and Justice WilliamJ. Brennan were insightful and provided me with a greater understanding of the various ways on how to interpret the Constitution as well on how to determine its purpose and intent. After reading and pondering on the arguments of both sides, I am more inclined to side with judicial activism as argued by Brennan that the Constitution must be viewed as living and evolving and as law that is responsive to the realities of the time, rather than Meese’s argument of judicial restraint of interpreting the Constitution according to the original intent of the its Framers. The reason why I c...
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Financial Markets & institutions
Financial Markets & institutions
4 pages (1000 words)
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... Interest is the value of money added to a loan borrowed. Interest is d as a percentage of the total sum of money borrowed. The balance of demand and supply sets interest rate. (Lurʹe 12)Loanable fund is the amount of money available for borrowing. Interest rate at higher level have more loanable fund while interest rate at lower level have less loanable fund. When interest rates are higher, the demand for loanable fund is lower than when the interest rates are lower. Interest regulates the prices of loanable funds, while the price of loanable fund determines the distribution of money in the capital market. (Lurʹe 15) Example; 100.00 Euros are provided by a company for a period of one year at rate of ...
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National bank regulation of commercial bank
National bank regulation of commercial bank
8 pages (2000 words) , Download 1
... of National and Commercial Bank Banking industry has been under regulation for various reasons such as to provide the safety of depositsand to prevent bank failures. Banks are regulated in the types of products, mainly financial products; total number of branches; cash reserve; the interest rate limits to pay on deposits; ceiling on lending to a single customer; and even merging and acquisitions are also regulated for the larger interest of the customers. Previously, the word ‘banks’ used to indicate only commercial banks, but now credit unions, savings banks provide nearly the same kind of services; however, they differ in some respects as some specialize in providing housing finance and some on...
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Evaluate the key factors that should be considered by management when deciding upon a particular capital structure
Evaluate the key factors that should be considered by management when deciding upon a particular capital structure
8 pages (2000 words)
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... THE KEY FACTORS TO BE CONSIDERED BY MANAGEMENT WHEN DECIDING UPON A PARTICULAR CAPITAL STRUCTURE by 26 June The Key Factors toBe Considered by Management When Deciding Upon a Particular Capital Structure Introduction Managers take financial decision on a day-to-day basis. Dozens of calls are made and hundreds of pages of financial reports are read, before the final capital structure decision is taken. It goes without saying that capital structure decisions are affected by a variety of internal, external, and other factors. More often than not, managers rely on the principles of financial planning and avoid sticking to any particular capital structure theory. Capital structure can be defined as “the...
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International Finance
International Finance
7 pages (1750 words)
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... Head: International Finance International Finance [Institute’s International Finance International finance is the subdivision of economics that deals with the dynamics of exchange rates, foreign investment, and the way they influence international trade. It as well studies international ventures, international funds and investment flows, and trade shortfalls. It incorporates the study of future options as well as currency swaps. Exchange rates influence the international trade within a free market structure that facilitates to keep a balance of trade and balance of investment. Such as a skewed change rate can create a business's exports inexpensive as compared to their foreign counterparts, although ...
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COMPANY LAW
COMPANY LAW
10 pages (2500 words) , Download 1
... i) There are more disadvantages than advantages for Black Books to raise its capital through loan or borrowing from lenders. Some of these disadvantages include but are not limited to: (i) repaying the loan exactly with the previously agreed upon contractual relationship—in other words, whether Black Books is doing well or not businesswise, the loan has to be paid back without any new concession for re-contracting; (ii) supplying a collateral security before the lenders could agree to grant the loans. In the case of Black Books, the securities offered to the lenders are the company’s land and some monetary securities. Hence, sometimes, the lenders could place some restrictions on the use of these...
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International Financial Management - Currencies and Costs

International Financial Management - Currencies and Costs

6 pages (1500 words)
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... RESEARCH ORDER No. 157066 7080 12 MARCH 2007 Examination Of The Rationale Behind Firms' Issuing Of Foreign-Currency-Denominated Debt And A Comparative Study Of How Vodafone Group Plc's Financial Structure Is Explained By These Reasons 2. Why companies Issue Foreign-Currency Denominated Debt: Evidence from Earlier Studies. A number of studies have provided reasons why firms issue debt in foreign currency. Some of the most important reasons that I came across include: Hedging foreign currency risk; Taking advantage of capital market imperfections to lower the cost of capital; and Speculative Motives; Issuing debt in foreign-currency increases firm value; and Tax Arbitrage. Hedging Foreig...
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Micro and Macro Economics
Micro and Macro Economics
8 pages (2000 words)
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... Micro and Macro economics Oil boom brings scar of workers in small towns http www.nbcnews.com/business/economywatch/oil-boom-brings-scarcity-workers-small-towns-940025 Chapter 1 terms and definitions: Opportunity cost Opportunity cost is the forgone alternative cost for another action. Scarcity Scarcity is limitation in supply. Scarcity is when a commodity is hardly there. For instance, land is a scarce factor of production (Mankiw, pp.55) Relevance In this article it is found out that the government and other traditional sectors are running short of labor. The scarcity has been brought about by the natural gas and oil boom. The laborers are forgoing other business jobs and offers for the oil jobs....
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The U.S Debt Ceiling
The U.S Debt Ceiling
8 pages (2000 words)
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... The U.S Debt Ceiling The U.S Debt Ceiling The U.S. debt ceiling is a lawful method of restricting the amount of national debt, which can be issued by the American Treasury (Levit et al., 2013). It is also known as the debt limit (Abotalaf, 2011). The debt limit is an aggregate amount that is relevant to gross debt, which incorporates debt in the hand of intra-government, as well as public accounts. Almost 0.5% of United States debt is not covered by this ceiling. Since government expenditures are legalized through a separate law, the debt limit does not openly restrict government debits (Abotalaf, 2011). In essence, it can just limit the Treasury from settling expenditures once the limit has been...
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Elements in financial services

Elements in financial services

10 pages (2500 words)
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... OF CONTENTS PAGE NO. Introduction ……………………………………………………………… 2 Overview of how monetary policy is structured …………………………,, 2 What is a monetary policy? ………………………………………………. 2 Who takes charge of the monetary policy? …………………………….. 3 How does monetary policy affect the U.S. economy? ……………………. 3 How do these policy-induced changes in real interest rates ……………………. 4 affect the...
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Analyse the economic objectives of the United States government and the effectiveness of its macroeconoic policies over the las three years

Analyse the economic objectives of the United States government and the effectiveness of its macroeconoic policies over the las three years

8 pages (2000 words)
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... Objectives of the United s over the last three years Over the last three years the US Government has learned numerous lessons of the global crisis that has ended up in the failure of macroeconomic policies. It would not be wrong to say that the economic roller coaster through high mortgage and unfavorable inflation rates has slowed down the economic activity where unemployment claims have risen to their second highest level since 2005 (Savage, 2008). Washington Times indicated last year that there is a threat of Stagflation which would escort to an unusual economic condition resulting in rising prices, inflation and stagnant economic growth (Savage, 2008). Stagflation was once witnessed in the...
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An historical account of an ancient Greek city-state or colony
An historical account of an ancient Greek city-state or colony
7 pages (1750 words)
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... account of an ancient Greek or colony Introduction Geography is a thought-provoking discipline that facilitates explorations of various aspects in the past and present movements. The geography subject borrows from a variety of other disciplines to explain various aspects of fauna and flora. History is among the most used secondary sources of information to aid in the study of geography. The focus of this paper is to discuss the various aspects of the ancient Athens city state. Athens is a renowned ancient urban center that has undergone progressive transformations over the years. The subsequent sections contain an annotated bibliography of ten books that contain useful information regarding the...
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Research on the composer Handel
Research on the composer Handel
8 pages (2000 words)
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... George Frideric Handel George Frideric Handel (1685-1759) was a cosmopolitan composer of German origin who lived almost his entire lifein England. He is regarded as one of the greatest and most talented composers of his period. He lived during the Baroque period, and his contribution to the music of this period can be compared only to the contribution of his compatriot J. S. Bach, whom he never met. Being of German origin, Handel is often regarded as an English composer not only because he spent almost the entire life in England but also due to his reformation of English classical music. Not only the uniqueness of his music but peoples attitude and his popularity made him an important figure of the...
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Macroeconomics
Macroeconomics
7 pages (1750 words)
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... Article Analysis Article Summary The article d “AUD/USD: Trading the Reserve Bank of Australia Interest Rate Decision” written by David Song, was posted on Saturday 30 April 2011. It discusses the impact of Australia’s monetary policies as a response to target inflation rates, on the Australian dollar and the exchange rate (Song, 2011). Introduction: This article highlights the key role played by the government by way of various monetary policies with regard to change in interest rates, and its resultant impact on the exchange rate of the country. While implementing the various monetary policies, it must be taken into consideration that the changes implemented today are likely to impact the economy...
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Cash rate, loan rate, equity funding
Cash rate, loan rate, equity funding
4 pages (1000 words)
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... Executive Summary RBA uses Cash Rate as a tool for executing the monetary policy in Australia to control inflation pressure in the country. Overall, cash rate shows a positive increasing trend in the country, with the exception during the years of Global Financial Crisis. Since the household costs of funds are driven by cash rate set by RBA, the standard variable housing rate can be assumed to follow the trend of cash rate. Recent developments in Australian economy show that, there has been an increased widening of the spread between major banks’ standard variable housing rate and the cash rate, since 2007. This can be attributed to the increased cost of debt funding for the major banks in...
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The Bond Market
The Bond Market
5 pages (1250 words)
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... Task Introduction The milieu in, which the issuance and trading of liability securities happens, is referred to as the bond market. The bond market deals with state-issued securities, shared debt securities, and enhancement of transfer of investment from savers to the issuers. These funds are required to fund state projects, business expansions and ongoing operations (Brett, 17). Government issues securities refer to the loan term loans offered to the public though issuance of bonds. They enable the government to raises capital from the public. On the other hand, corporate debt refers to the property owned by a business, which can serve as an income distress absorber to a specific class of...
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Other
Other
4 pages (1000 words)
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... s Topic s` Introduction According to Answer.com , debt financing is a process of raising money to a firm throughselling bonds, mortgages, notes and borrowing from the public. In today’s world, most health care organization borrows capital with incurrence of debt to help them compete efficiently in the market. As a result, the health care management need to carefully select the choice they considers best in providing debt and on how easy or effective to implement it ( Therese, Andrew, Kufman, Hall & Associates Kufmanhall.com, 2013). Consequently, when health care organizations incorporate debt financing to it capital structures, it gives a financial leverage that increases the operating profits to...
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Open economy

Open economy

6 pages (1500 words)
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... Open Economy: Macroeconomics Under the Microscope An open economy is one that interacts freely with other economies around the world, a theoretically simple explanation that belies its actual complexities. Macroeconomics, the theoretical basis of the open market, involves the selling of goods and services produced in one country to another, and vice versa—another concept that on face value appears straightforward and generally positive from an overall economic perspective. The reality, however, of these economic practices are worth examining in detail in terms of assessing whether, as advertised, they indeed produce the best situation for the largest number or are merely tools of powerful economies...
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Short Econ questions/responses
Short Econ questions/responses
6 pages (1500 words)
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... Macro and Micro Economics Economic Growth is a measure of a particular country’s output inreal terms whereas Economic Development is a broader term covering issues relating to the structure of an economy and real national income including the quality of life and state of resources at the disposal of a particular country. Economic growth is a quantitative aspect of a production capacity of a country; whereas, Economic development pertains to qualitative aspects of an economy. Rostow’s five stages of economic growth are conclusive of Traditional society, pre conditions to take off, take off, and drive to maturity and age of mass consumption. Each of these five stages is dependent upon the sector it op...
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Unemployment
Unemployment
4 pages (1000 words) , Download 1
... Feng ECO 418 4 Unemployment Unemployment is among the economic indicators. It is applicable to evaluate and measure the financial status and give an outlook on the economy. Governments in most countries across the world frequently review the rates of unemployment and share the same on a monthly basis. This is indicative of the significance that unemployment has to the rest of the economy. Unemployment affects the economy in two ways. Firstly, an increase or decrease in the rate of unemployment has a direct effect on the rate of inflation in the economy. Secondly, news of a rise or fall of unemployment significantly affects the stock market; that is, it affects the pricing of stocks and bonds. This...
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American economic issues
American economic issues
5 pages (1250 words)
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... ECONOMIC ISSUES American economic issues The American economy just like other major economies is undergoing a transformation. 20th century economic models seem to be failing as monetary and fiscal policies fail to stimulate growth. Terms like the debt ceiling are becoming common as the government seeks to increase borrowing so as to spend, and grow the economy. However, the impact of such spending is not tangible creating a scenario where the national debt is growing to increasingly unsustainable levels. With this increased debt, comes rising interest rates, which then increases inflation levels. Some of the effects of inflation and declining incomes include an increased cost of higher education,...
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Beggar Thy Neighbour
Beggar Thy Neighbour
6 pages (1500 words)
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... Beggar Thy Neighbour Number Page Number of BTN Sentence that prompted the question. Question Pg. 138 paragraph 4. The Americans also acquired a taste for trading securities and suffered two panics in their rudimentary markets before 1800. If speculation was such a dangerous game that intrigued people but had catastrophic effects, why was it introduced into the economy? 2 Pg. 141 paragraph 2. Federalists and Alexander Hamilton claimed that a bankruptcy law was necessary in order to discharge an insolvent from his debts so that business could be renewed and progress achieved. What led to the development of the American Bankruptcy Law? 3 Pg. 143 paragraph 3 Like many businesspersons, he did n...
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What are the roots of the present crisis of the euro
What are the roots of the present crisis of the euro
3 pages (750 words)
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... are the roots of the present crisis of the euro? There are good promises about integrating the euro zone into one currency policy. One of the reasons why there are many countries engaged themselves into this one-currency policy is to substantially address the need of their economy to rise up above any other. However, behind all of these promises are some limitations that need to be taken into consideration (Provopoulos, 2010). One of the limitations is the substantial loss of the ability of a participating nation to set its individual domestic monetary policy. Another is losing its ability to change the nominal exchange rate of its currency. It is therefore clear that with the optimum currency area...
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Banking System and Monetary Policy in Portugal report
Banking System and Monetary Policy in Portugal report
3 pages (750 words)
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... Head: A Snapshot of Portuguese Economy Portuguese Economy: A Snapshot here Portugal’s banking and financial system is sound, competitive and well managed. Despite being not as large as other EU nations, the banking system in Portugal can be compared with other EU nations in terms of profitability, efficiency and solvency. The challenges for the banking system of Portugal lie on the growth side of the economy. In the recent years, the Portuguese economy has not been able to grow as fast as its European contemporaries. In the last two years, the Portuguese economy has also witnessed excessive public expenditure and hence large levels of national debt. All of these threats pose serious challenges to...
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The causes and consequences of an investment project of x (a corporation)
The causes and consequences of an investment project of x (a corporation)
3 pages (750 words)
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... and Consequences of an Investment Project Introduction Investment projects are challenging undertakings for organizations. This paper is a case study of an investment project undertaken by Qatar Airline. The problem identified in this case study is whether the changes Qatar Airline applied to its capital structure have brought required positive effects. In this project, the company plans to introduce its services in the Kilimanjaro region with destination in Tanzania (QA 2012). This paper analyzes and discusses the nature of assets in the project, its cost, timing, expected life, rate of return, and present value of the asset. The paper also analyzes and discusses change in capital structure and the ...
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Central bankers rush to calm jittery markets
Central bankers rush to calm jittery markets
3 pages (750 words) , Download 0
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... Central Bankers Rush To Calm Jittery Markets Considering the past financial crisis and economic meltdown, it is indeed important for all the financial institutions led by the central banks’ management to try to curb the repeat of the same. The management of these institutions has come out to calm the current rough terrain experienced in the markets. According to Brian Milner of The Globe and Mail in his article “Central bankers’ rush to calm jittery markets”, he asserts that the Central bankers are really trying hard to bring comfort to the markets. The bond yields have really gone up and this has exposed the global recovery at risk according to Milner. The bond yield is said to have been caused by...
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In what ways can fiscal policy affect aggregate supply
In what ways can fiscal policy affect aggregate supply
3 pages (750 words) , Download 0
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... Question In what ways can fiscal policy affect aggregate supply? Fiscal policies are strategies applied by the legislative and other arms of the government to control the country’s economy. Mainly the government executes its fiscal policies through taxes and expenditure. Fiscal policies affect aggregate supply in many ways. Taxation affects supply of labor that in turn affects the supply of goods and services. Rise of direct taxes reduces the net income, thereby lowering motivation among employees. Reduced rates of corporation tax can also stimulate fixed capital investment. This will in turn boot supply due to increased supply of goods and services. In addition, establishment of infrastructures is...
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Final
Final
3 pages (750 words) , Download 0
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... Macro economics Question a. If Fed sold million dollars worth of government securities to an agent with a simple money multiplier of 5, then the money supply will decrease by 5 x1 = $ 5million. Interest rates will increase hence resulting into a reduction of money supply and credit creation. If Fed sells government securities to an agent, then it means that the available government securities reduce hence a reduction in credit creation (Langdana 100). With the reduction in credit creation, interest rates will increase as the government tries to discourage people from borrowing the securities. Graph 1: The effect of increase in the money supply According to Keynes, money supply is fixed by the...
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International Monetary Fond
International Monetary Fond
3 pages (750 words) , Download 0
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... Monetary Fund The great depression ranks as the most devastating in history of the world and its end came as relief to those who survived. The effects of the depression outline the economic catastrophe that was at time and highlights the economic and social strains experienced. Earlier attempts by nations to remedy the situation saw some countries curtail citizen’s freedoms to foreign trade and devalued their currency. However, this only served as self-defeating strategies since none of the countries held their competitive nature for long leading to a sharp decline in international trade. In the period leading to the conclusion of the World War II, allied countries hoped to restore sanity to...
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Macroeconomic - Market Rate of Interest
Macroeconomic - Market Rate of Interest
4 pages (1000 words)
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... Macroeconomic Explain the difference between the official cash rate and the market rate of interest. Explain the mechanism by which the RBA decreases the cash rate. Use diagram(s) in answering the question. Answer: It is the responsibility of the Reserve Bank to set the official cash rate which is regarded as the interest rate directed to meet the inflation target prescribed in the policy agreements. The official cash rate has the potentiality to influence the price of borrowing money. The Reserve Bank also uses this method in order to influence the level of inflation. The market rate of interest tends to follow the official cash rate. With increase in the interest rates in the market, the people...
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Short Term Financing

Short Term Financing

3 pages (750 words)
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... 165816 Short- term financing Introduction A business establishment or a company has many ways of raising finances to conduct its operations be it operating expenses or equipping the company of its assets .Depending on the need and the purpose for which the finances are being sought. We have the two ways of raising finances i.e. short term financing or long term financing. Short-term financing: It is essentially to provide capital deficit business funs for a short term period of a year or less. It's also made to refer to the time for which a loan is required and the period over which its repayment is expected to take. Short-term funds are usually for are usually for business to run their day to day op...
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Economic Effects of the Easy Money Concept
Economic Effects of the Easy Money Concept
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... Easy Money: Too Much of a Good Thing The nation’s top selling newspaper, The Wall Street Journal, is the starting point of America’s business. The journal releases the most recent updates in the political and business arena. Most importantly, it relates the recent news events both domestically and internationally to business and market alterations. More so, The Wall Street Journal gives updates on the important matters on different economic issues. This essay briefly provides an opinion on the current economic issue that interest readers of the wall street journal readers. The most recent news in the journal as far as economy is concerned is easy money.   Wall Street Journal, Global Economics...
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United States Trade Deficit
United States Trade Deficit
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... United s Trade Deficit United s Trade Deficit Introduction In the recent years, United s has been faced with an unprecedented amount of borrowing. It has also managed to support its overwhelming account deficit without experiencing significant challenges in foreign investors holding its assets. However, more need to be done in ensuring that the country attracts the same amount of extra foreign savings. This is because the US deficit has plummeted far enough to chew on the resources generated abroad. In fact, the level of borrowing has overtaken the amount of funding from other countries. The trade deficits has also been linked to the current rapid economic globalization (Higgins & Klitgaard, 2007)....
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Starting a Business in Aqua-Pure Company
Starting a Business in Aqua-Pure Company
3 pages (750 words)
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... Starting a Business of business The of the small-scale enterprise is Aqua-Pure Company. 2. Products to be sold Aqua-Pure Company would be engaged in the manufacturing and selling of Aqua-Pure Bottled Mineral Water. The bottled mineral water, which would be in PET containers, would be made available in 100ml, 500ml and 1liter variants. This product targets the health-conscious market comprising of people, who opt to consume water rather than soda or carbonated drinks. This would be sold in leading grocery and convenient stores. 3. Sources of capital and things needed for business operation There are various ways to raise capital1 for financing the bottled water business. First of all, I may u...
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Time Value of Money Application Paper

Time Value of Money Application Paper

3 pages (750 words)
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... Value of Money Time value of money is an important concept in finance. A company in charge of Credit Card, insurance premium, retirement fund etc must know the today’s money (present value) at their disposal and the future worth of such amount in order to make financially justifiable and economically sound decisions. More so, time value of money states that money received today by a business man is worth more than that same amount of money in future (tomorrow). That is why if the money is invested today say in stock market, the dividend the money will earn tomorrow in addition to the present amount is the present value or the interest if deposited into a bank. The following are some important...
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