Nobody downloaded yet

Business and Finance Economics: (Economics of Money and Financial Markets) - Assignment Example

Comments (0) Cite this document
Summary
Interest Rate play a significant role in the financial markets, as it is a key determinant of investing activities and household spending in an economy. The business cycle and capital structure prevailing in an economic are influenced by the macroeconomic policies. However, the…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.2% of users find it useful
Business and Finance Economics: (Economics of Money and Financial Markets)
Read TextPreview

Extract of sample "Business and Finance Economics: (Economics of Money and Financial Markets)"

Download file to see previous pages Therefore, to understand economic development in an economic it is essential to determinant interest rate level. The researchers have been constantly engaged to determine economic development by measuring interest rate, as the fluctuation in the investment activities cannot be determined by the investment period. Hence, the interest rate provides detailed information about the economic conditions of the economy by assessing investment condition, financing terms and capital markets. It can be determined by analyzing past trends of interest rate that are controlled and regulated by central banks. However, there are several macroeconomic factors that affected the behavior of short term interest rate of an organization since 2005-2015. The constant fluctuation in the interest rate is persistently affected by the economic events. The unusual historical movement of interest rate is denoted by shifts in equilibrium. Interest rate is considered as a primary tool to determine monetary police and economic activities. With the growing needs for transparency and predictability of monetary policy has persuaded to improve economic activities and inflation rate in an economy that are affected by inflation expectations. The main idea is to determine the impacts of policies on the interest rate changes on the economic growth, assessing investments, capital formation, growth and inflation in an economy. In addition, interest rates are also determined as credible and predictable to determine effectiveness of policies and economic growth.
The present paper aims to investigate what are the major economic determinants that influence short term interest rate of Germany. The main objective is to determine the dominant macroeconomic factors that affect fluctuation and movement. In addition, we examine the information of the interest rate options that are influenced by any of statistical power and macro-economic variables that has ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business and Finance Economics: (Economics of Money and Financial Assignment”, n.d.)
Business and Finance Economics: (Economics of Money and Financial Assignment. Retrieved from https://studentshare.org/finance-accounting/1695998-business-and-finance-economics-economics-of-money-and-financial-markets
(Business and Finance Economics: (Economics of Money and Financial Assignment)
Business and Finance Economics: (Economics of Money and Financial Assignment. https://studentshare.org/finance-accounting/1695998-business-and-finance-economics-economics-of-money-and-financial-markets.
“Business and Finance Economics: (Economics of Money and Financial Assignment”, n.d. https://studentshare.org/finance-accounting/1695998-business-and-finance-economics-economics-of-money-and-financial-markets.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Business and Finance Economics: (Economics of Money and Financial Markets)

The Economics of Money, Banking, and Financial Markets

.... This includes providing security for the company, establishing independent regulatory bodies and creating conducive business environment. It is worth to note that despite the political, economic and currency risks that exist in Nigeria, the country is a target market for majority of multinational telecommunication companies. This implies that it is upon the Nigeria government to continue initiating proper regulations that will drive the country towards political and economic stability to attract more foreign investors. References David K. (2003).USAID/Nigeria Economic Growth Activities Assessment. USAID/Nigeria SO 2 Portfolio Review 11-24. Dwivedi, N....
10 Pages(2500 words)Essay

Economics - Financial Institustions and Markets

...and rules. This medium is heterogeneous due to the fact that all economic agents are free to enter this market and optimize their business objectives within the set of standard rules. These agents include the government and private institutions within the economy as well as private institutions operating from abroad and individual investors. Knowledge about the financial system of the country is essential for identifying and studying the issues arising in the financial system within the country. Therefore, this section explains the basic structure of the financial system within the country. The financial system in the...
20 Pages(5000 words)Research Paper

Business Economics and Finance

...Business Development Process at Coca-Cola Limited Please put here Business Economics and Finance Please put your name here 22nd March 2008 Please put your name here Please put your instructor name here Business Economics and Finance 22nd March 2008 Business Development Process at Coca-Cola Limited This report is about the business development process of one of the world's leading carbonated soft drinks organization, Coca-Cola Limited. Coca-Cola is also the subject and foundation stone for numerous marketing operations and sales management case studies. The product...
11 Pages(2750 words)Case Study

Financial Economics

...the highest dividend payout possible. One of the main reasons people like dividends so much is because they are obtaining an immediate financial return instead of waiting for the sale of the stock to achieve a capital gain. In order to better understand the effect of dividend we must recognize the existence of retained earnings. At the end an accounting period when profits are determine the board of director can either declare dividends or kept the profits in the form of retained earnings. When money is not distributed and it is kept as retained earnings the company can utilize these funds to make the business grow. If a company is able to invest its money wisely in high...
6 Pages(1500 words)Essay

Economics: Money & Financial institutions

...that this means that the companies have borrowed $30 trillion shares from the public in shares given that outstanding shares are those shares that are held by the investors. b. The primary market is the financial market where new securities are traded. The secondary market is a financial market where previously issued securities are traded (i) Sofia buys 200 shares in Disney Corporation: In this case if these are newly issues shares then this constitute the primary market but if the stocks were previously issued then this constitute the secondary market. The capital market is a...
2 Pages(500 words)Speech or Presentation

Money & Banking - economics 321

...investors, the probability of crashes increases as speculation for profit drives the ‘manias’ or ‘bubbles’.” During the feverish economic activity driven by speculative boom, a point is identified to emerge wherein prices start to level and uncertainty start to creep in. This situation, in Kindleberger’s theory creates a period of financial distress, which finally launches a steady downward spiral: There is an inevitable burst as the market started the race to withdraw. In the event of a rush to liquidate, the bubble bursts and further panic ensues. The problem will reach crisis proportions as financial institutions fail, prices decline and the number of bankruptcies...
2 Pages(500 words)Coursework

Economics of Global Money Markets

.... As economic indications weaknesses advanced over successive months, the rates of federal funds target was lowered by 325 points by the committee, leaving it at 2% by the end of 2008 (Oulette, 2014). During the summer, the rates were held constant by the committee as it watched financial and economic conditions. As the crisis grew worse at the fall of summer, finance committee responded through lowering rates of federal funds target by 100 points, with this coming unparalleled cut of interest rate by central banks. In December, evidenced by dramatic slowdown, the committee lowered its target at a range of 0-25 points. Up to date the range as remained with no...
11 Pages(2750 words)Essay

Financial Economics

.... The mean of leverage is 39.10 percent while the median is 37.74 percent. Leverage is low in the sample taken from companies in the past three years. This is per the data that was brought out by Finance Department, College of Business Administration, King Saud University, Saudi Arabia. In the US, the mean of leverage is around 58 percent, while in the UK leverage is around 54 percent. As brought out by the study of firms in Saudi Arabia, firms in developed countries are highly levered compared to firms in emerging markets. The reason for this might be the limited availability of funds in emerging markets to finance companies. The available funds are...
13 Pages(3250 words)Essay

Gobal Economics and Financial Systems

... the dollar at stake?” Monthly Review, 60(11): 24-35. Retrieved from the ProQuest Research Library database. Volker, P. (2008). “Rethinking the bright new world of global finance.” International Finance, 11 (1): 101-107. Retrieved from the Business Source Premier database. Wah, L. (1998). “Managing money in a volatile world market.” Management Review, 87(4): 17-21. Retrieved from the ABI/INFORM Global database. Yale Center for the Study of Globalization. Global economic governance. Retrieved September 8, 2010 from http://www.ycsg.yale.edu/core/economic_governance.html.... Global Economics and Financial Systems Analysis of the Field of International Finance International...
10 Pages(2500 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Business and Finance Economics: (Economics of Money and Financial Markets) for FREE!

Contact Us