FINANCIAL MARKETS AND MONETARY POLICY Essay Example | Topics and Well Written Essays - 1750 words - 1

FINANCIAL MARKETS AND MONETARY POLICY - Essay Example Since then it has been varying over the years where the present name ‘official bank rate’ was initiated in 2006 replacing the former ‘Repo Rate’ that existed till 1997. The rate of interest is levied by the nation’s central bank or the Federal bank on lending or advances to regulate the supply of money in the banking sector and overall economy. This is essentially conducted on a quarterly term to regulate the inflation rate and strengthen the nation’s rates of exchange. Any deviation in the bank rates stimulates a ripple-impact as it affects every sector of the economy. For example, the stock prices in the exchange market seem to respond to the changes in the interest rates. A variation in the bank rates has an impact on the customers as it affects the prime rates of interests for individual loans. The Bank rate is the rate at which the Bank of England gives to the commercial bank for the extra reserves being kept in safe custody of the Central Bank (Ciro, 2012, p. 122). Conventionally, the treasury determines the rates of interests. But upon the reforms that occurred in 1992, the policy makers organized several meetings and minutes were published, yet they were not autonomous of the state which resulted into a perception that political forces were overshadowing what was stipulated to be fiscal decisions on the monetary policy. In 1997 there was operational accountability to determine the interest rates which was granted to the autonomous Bank of England by Gordon Brown-the Chancellor of Exchequer. Several principles were set for the establishment of the Monetary Policy Committee (MPC) that was enacted in the Bank of England Act 1998 (OECD, 2009, p. 31). The Act also spelled out the accountability of the MPC: this include; meeting on monthly basis, the membership consists of the governor, two deputy governors, two executive directors of the bank

Instruments and Markets Essay Example | Topics and Well Written Essays - 500 words

Instruments and Markets - Essay Example A company needs to be able to meet its current liabilities using its current asset for it to be operational. Companies have short term liabilities that need to be paid and also long term liabilities due (Vandyck, 2006).Therefore the BHP Company has a current ratio of 0.97 which implies that the current asset and the current liabilities almost cancel out. This is a safe cash flow position that shows the firm can adequately service its obligation The company’s level of efficiency in terms of return on assets stood at 9.44% while the Return on equity was 15.92%. These ratios give the efficiency at which the company’s resources were used to achieve the various results and how effective they were. The debt to equity ratio gives the distribution of the capital structure in terms of how much is contributed by stock and how much by debt. A high debt to equity ratio would mean a company is heavily dependent on debt and hence plenty of its future profits would be tied down and there would be less flexibility. A debt to equity ratio of almost 50% shows the two sources of capital are evenly

Leadership & Negotiation Essay Example | Topics and Well Written Essays - 1000 words

Leadership & Negotiation - Essay Example From the discussion it is clear that organizations are faced with an alarming shrinkage in the availability of funds as obtaining credit has become harder, a fact which has resulted in driving well established businesses to the point of bankruptcy. The global recession also proves to be a considerable challenge because inflation has increased the level of risk associated with business activities and in these times of the financial crunch.This essay discusses that smaller businesses will generally be much more sensitive to the on going credit crunch because of their limited sources of external funding, larger more well established organizations will face the difficulties of keeping a huge business set up going in an atmosphere of financial   vulnerability. Hence it would be safe to say that all sorts of businesses are facing considerable difficulties during these times. However, there are some ways that organizations can counter these circumstances. Leaders must aim to build their o rganization’s credit structures in a way which enable them to weather the â€Å"bitter cold shock to the credit markets† . Leaders of small to medium organizations can ensure credit approval by devising strong negotiation strategies and can also look towards other sources of external financing such as â€Å"crowd funding†.  Leaders will have to learn how to make their organizations more ‘flexible’, because surviving in today’s business environment means that organizations will have to respond to the micro-markets’ demands in a timely manner, and this can only be done if organizations are flexible.

2pages story and 2pages essay Example | Topics and Well Written Essays - 1000 words

2pages story and 2pages - Essay Example While the Americans politicians could not help but notice the gleaming gold stacked inside the gigantic space ship, the space people also could not keep themselves from noticing that there was only one Asian American in the delegation sent by the US president from the White House. In a group of 20 politicians of high standing, only one Asian American represented the US. This was diversity at its poorest and it did not go unnoticed by anyone who arrived from the star in the space. It was assumed by the space people that Asian Americans were largely considered simple-minded and unrefined people by the white elitist forces in America. On grounds of extensive research conducted by them in recent past, they knew it well that a few white elitist groups acted as a driving force behind the American politics. The US president could not risk their anger or disagreement because they funded his campaigns. Since Asian Americans formed a racial minority in the US in contrast to whites who formed a racial majority, the leader of the delegation from space put forward a very unique proposition before the Americans. He offered remarkable treasures in the form of gold to America to help the politicians address all kinds of domestic catastrophes in exchange for every one of Asian American residing in the US. They did not explain what they intended to do with Asian Americans, rather they just emphasized this deal claiming that the US president is free to accept or decline this offer. They naturally expected some resistance or hostility form the US delegation on introduction of such a nonplussing offer, but to their amazement the Americans threw themselves into hot debate soon afterwards considering the offer very seriously. The gleam of gold masking their good judgment, they ran off to their president with this otherwise outrageous offer to the White House. The president

Cyber Security and Information Security Assignment

Cyber Security and Information Security - Assignment Example For example, Phneah (2013) suggests that previously, risks from inside the company were previously more about financial shifts, but now corporate espionage is becoming a bigger risk. This may be because the benefits that come from understanding the organizational structure and what the company is working on may be extremely beneficial to some individuals, and there are those that are willing to pay more to understand how the company works. The article does note that the relative risk is changing, because Phneah (2013) suggests that insider risk may actually become more important from the dangers from outside the organization. Another interesting thing to consider is that there may be a risk from collaboration between insiders and outsiders, which could pose a significant risk to information security. The risk is noted to be changing because organized crime groups understand that they can cause a lot of damage (for financial game or types of terrorism) by using insiders to promote the attacks. The change may also be due to the fact that many corporations are aware of the risk from outside the company, and thus information security has been tightened up in the last decade making it very difficult for outsiders to attack without relevant passwords or passkeys. The collaboration therefore combines someone who already has access with someone who wants to commit serious attacks. Phneah, E. (2013, August). Insider threats evolving, still main risk | ZDNet. ZDNet. Retrieved August 30, 2013, from http://www.zdnet.com/insider-threats-evolving-still-main-risk-7000003491/ 2. Search your institution’s published documents, including its Web pages. Locate its mission statement, vision statement, and strategic goals. Identify any references to information security. Also look for any planning documents related to information security. From the website, UMUC has the mission statement to provide good-quality, affordable and accessible education as part of the state of Mary land. The vision statement suggests that it aims to be a part of the greater movement to allow more people to get a college degree regardless of their circumstances, although this is not stated explicitly on the website. The strategic goals of the institution are to achieve the mission and vision by providing a lot of online courses and having campuses in many locations. This increases accessibility. Additionally, there are several references to financial aid which can be given as a way of helping more people attend UMUC. There are not that many references to information security, but the website does have a secure sign-in area for students and faculty designed to keep important information secure and personal to the individual. Chapter 3 P.114 4. Using the format provided in the text, design an incident response plan for your home computer. Include actions to be taken if each of the following events occur: Virus attack Power failure Fire Burst water pipe ISP failure What other scen arios do you think are important to plan for? Type of Event Virus Attack Potential Damage Files could be corrupted, private and personal information could be taken and used in malicious and criminal ways Precautions Install anti-virus software and keep it updated regularly to prevent against potential attacks Actions to Take Immediately use anti-virus software to identify the type of virus and the damage it could do. Use the software to remove the virus if possible, if not try to

Macro Economics Assignment Example | Topics and Well Written Essays - 500 words - 5

Macro Economics - Assignment Example It also provides individuals to act based on their self-interest regarding the decisions in the economy. This thought ensures that the economic resources are allocated based on the desires of businesses and individuals. The classical economists uses the value of money in determining the prices in the market. On the other hand, the Keynesian school of thought depends on the aggregate demand and spending in defining the economic marketplace. The Keynesian economists believe that the private and public decisions influences the aggregate demand. Public decisions entails the municipalities and government agencies. Private decisions entails the businesses and the individuals found in the economic marketplace. Government spending is not one of the major forces in classical economic literature. Business investments and consumer spending represent the most important section of the country. Too much government expenses takes away the resources needed by businesses and individuals. On the contrary, the Keynesian economics relies on the government spending to jumpstart the nation (Nikaido, 546). The classical school of thought focuses to create long term mitigation for economic problems. The issues on inflation, government taxes, and government regulations are the main agenda for the classical school of thought. The Keynesian school of thought focuses on the immediate outcome in the economic theories. The policies set by the Keynesians were short term and required instant corrections to the nation. This is the reason why government spending is the main cog in this school of thought. From the classical model graph, the aggregate supply curve is illustrated by the vertical line. From the Keynesian model, the aggregate supply curve slopes upwards based on the Keynesian school of thought. The two school of thought represents the aggregate supply and aggregate demand and they

Cloud Computing Research Paper Example | Topics and Well Written Essays - 1000 words

Cloud Computing - Research Paper Example The only requirements for a person to access the applications include a computer system and an internet connection. â€Å"As long as a computer has Internet access it will be able to use the application† (Cheow 2010). Categories of Cloud Computing Cloud computing falls into three major categories, which include utility computing, web services, and Software-as-a-Service. SaaS SaaS is the simplest way of computing because it is a single application. Cheow (2010) states, â€Å"Because there is only one application it is very easy for the company to maintain†. SaaS model helps companies save their expenses on buying hardware and software. This model also removes the maintenance costs of the computer systems and applications. â€Å"This type of cloud computing delivers a single application through the browser to thousands of customers using a multitenant architecture† (Knorr & Gruman, n.d.). Utility Computing If we talk about utility computing, we can say that it is, at present, a supplemental kind of computing because it is used for the fulfillment of such needs that are not very critical in nature. â€Å"Early enterprise adopters mainly use utility computing for supplemental, non-mission-critical needs, but one day, they may replace parts of the datacenter† (Knorr & Gruman, n.d.). Web Services The third type of cloud computing .i.e. ... Importance of Cloud Computing Unlike traditional business applications, cloud computing eliminates the issues of hardware and software failure for its users. In traditional settings, companies need to install, configure, test, and run every application on their own. However, with cloud computing, companies run their business processes in the form of clouds where they do not need to worry about any technical failure or information misuse. Using cloud-computing system, an industry can experience a considerable amount of workload shift because many of the tasks are performed online. Strickland (n.d.) states, â€Å"Local computers no longer have to do all the heavy lifting when it comes to running applications†. Disadvantages of Cloud Computing Along with a number of advantages of cloud computing, there also exist negative aspects of using cloud-computing services. Two of the drawbacks of cloud computing include security and privacy concerns and loss of control due to increased de pendency. Security is the biggest concern because users of cloud computing services usually do not feel safe while sending their private data to the cloud service providers. Moreover, increased dependency on cloud service providers is also a negative aspect of cloud computing. Companies Providing Cloud-Computing Services In traditional settings, companies need to design, configure, implement, and maintain the business applications. They need to hire experts who can perform the role of application development but with cloud computing, companies run their business processes in the form of clouds where they do not need to worry about any technical failure related to hardware and software. There exist some cloud-computing services providers, which provide management services, such