A. Barter System – The barter system does not make the use of money but is a system that is used to exchange goods or services for the possession of other goods or services. Example – In a country like Venezuela where the country is experiencing hyperinflation and prefers the barter system better, I would […]
Estonia is one of the three Baltic states that has membership within the European Union. After independence in 1918 and a fifty-year incorporation into the Soviet Union, the Republic of Estonia finally regained its independence in 1991. After leaving the Soviet Union, Estonia struggled as it converted to a more capitalist economy. The Russian Economic […]
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Get startedAnalysis about factors affecting Australian Dollar US Dollar exchange rate (2006- Q1 2010) Project Report Final Project in Banking and Finance (FP 238) Raffles College of Higher Education I. Introduction 2. 1. Background Most of the country in the world will have export and import and they will use money to pay for it. Each […]
Introduction The intention of this essay is to explain how Bank of England monetary policy has affected inflation rates within Great Britain, we will take data for the time period 2009-the present, the reasoning for this is this was the time-period that ‘Quantitative Easing’ was introduced. It will state recent developments in regard to interest […]
Describe the difference between monetary and fiscal policy in the UK and explain how such policies can be used to achieve different macroeconomic government objectives. The main and most obvious difference between monetary and fiscal policy is that monetary policy is set by the central bank and fiscal policy is implemented by the government. In […]
In this chapter the available literature on the topic will be reviewed critically to enable a better understanding of the variables impacting on stock prices. This section examines different studies published by researchers, followed by empirical evidence on macroeconomic variables that could affect the stock price. 2.1 Theoretical Review In this study we will examine […]
Introduction: This essay discusses whether and to what extent large asset purchases by a central bank may affect financial markets in theory and practice. This essay begins with an explanation of why central banks are engaging in unconventional policies, then, it explains the importance of the zero lower bound on interest rates with its past […]
In this chapter the available literature on the topic will be reviewed critically to enable a better understanding of the variables impacting on stock prices. This section examines different studies published by researchers, followed by empirical evidence on macroeconomic variables that could affect the stock price. 2.1 Theoretical Review In this study we will examine […]
This essay aims to study determinants of currency exchange rates, focusing in particular on one reason behind the failure of uncovered interest rate parity (UIP): the currency carry trade. The essay concentrates mainly on the unwinding of carry trade and its implications for the value of currencies and the real economy. By showing the links […]
Previous studies of Treasury market illiquidity span short time-periods and focus on particular maturities. In contrast, we study the joint time-series of illiquidity for different maturities over an extended time sample. We also compare time series determinants of on-the-run and off-the-run illiquidity. Illiquidity increases and the difference between spreads of long- and short-term bonds significantly […]
This study is based on 60 monthly observations from April 2005 to March 2010 inclusive. The period was chosen to provide enough observations to obtain reliable parameter estimates. The totality of the data was obtained from Yahoo Finance, Bank of England, and Office for National Statistics. Despite that historical Stock data is available on daily, […]
Introduction When discussing the impact of Basel â…¡ on banking risk management in China, the liberalization process and considerable reform of banking industry in China will significantly interpret the establishment of modern banking industry and the environment of risk management in banking industry in the past thirty years. Furthermore, this section will indicate particularly significant […]
The key purpose of bringing specific change in monetary policy is maintaining the Gross domestic product (GDP) strong by maintaining the inflation low and controlling the interest rate alterations. It is known that the interest rates and quantities of money can be affected by the tools available to central banks, that has direct effects on […]
There was a time when money did not exist. Long ago, people at a stage called “subsistence economy” produced only what they needed. Their needs were few but their methods of production were such that they spent most of their living hours in an unceasing battle for personal survival. They had no need for money. […]
As we are discussing the macroeconomic theory of the open economy, it is important to look at the individual government’s macroeconomic policies, which are monetary and fiscal policy. In the United States, the monetary policy that is put in place, affects an organization’s economic and financial decisions, such as loans and purchases. This macroeconomic policy […]
The research includes the analyzing and understanding of banking sector, interest rates and their impacts. According to Oxford Advanced Learner’s Dictionary, interest is the extra money that you pay back when you borrow money or that you receive when you invest money. Interest is basically the charge for the borrowing of money, generally conveyed as […]
Over the past few decades, the connection between macroeconomic variables and the movement of stock prices has been a subject of interest among academics and researchers. It is often argued that stock prices are determined by some fundamental macroeconomic variables such as interest rate (Base Lending Rate, BRL), exchange rate, inflation (Consumer Price Index, CPI), […]
There were two group of markets can be found in financial market. They were the capital market and the money market. Although they both come from financial market but they consist of differences. In capital market, we will found the stocks and bond market but in general it is the market for securities where long […]
Banking is by far the most important sector in Bulgaria’s financial system which works on the principle of universal banking, being authorized to carry out a wide range of financial activities with both individuals and institutions (September 2003, By Directorate General for Economic and Financial Affairs). However, until the early 1990s, like in other central […]
1.0. INTRODUCTION Tanzania is an sovereign state and is among the Sub Saharan African countries situated in Central East Africa. Neighboring countries are including Kenya and Uganda to the north, while Rwanda, Burundi, and Democratic Republic of the Congo the west, to the southern part bordered by Zambia, Malawi and Mozambique. The country also bordered […]
Abstract Credit works as blood life of any banking institute. This research is based mainly at investigating the impact of credit risk on banking stability, in banking sector lending behavior in Pakistan using data on commercial banks and macroeconomic instability from last decade. Our results under the Co-integration of variables and Correction Modeling framework show […]
Financial market is a mechanism that allows people to buy and sell financial securities, commodities and other fungible items to value at low transactions costs. It divided into money market, capital market, derivation market and offshore market. Money market involved in short-term borrowing and lending of fund with original maturity of one year or shorter […]
Bonds is a debt security, in which the issuer owes the holders a debt and is obliged to repay the interest (coupon payment) periodically and the principal at a later date, termed maturity. Investing in bonds is not riskless and the value of bonds can be affected by different risks. However, treasurers and financial managers […]
Stock exchanges contribute a lot in economy no matter it represent to the develop country, under develop or the developing country. The only thing which matters is how and why they are known to be the integral part of the economy? The answer for this question is complicated, as not only the stock exchange effect […]
When interest rates rise, bond prices fall; conversely, rates decline, bond prices rise. The longer the time to a bond’s maturity, the greater its interest rate risks. This risk can be reduced by diversifying the durations of the fixed-income investments that are held at a given time. Interest rate risk affects the value of bonds more directly […]
Overall objective of public debt management is to reduce the country’s fiscal vulnerability by stabilizing the debt ratio dynamics at some desirable level (Melecky 2007). The traditional approach to public debt management analyzes debt sustainability in the absence of risk. The risk management approach, in contrast, shows that risk is minimized if a debt instrument […]
Thailand was regarded as Asia’s Tiger in 1990’s, where the economic situation is thriving. Thailand had a strong growth in Gross Domestic Capital of 11.5% from year 1987-1996. However, Thailand was seriously affected by the Asian Financial turmoil. It is suggested that the great fall during Asian Financial turmoil is mainly caused by the poor […]
In 1907, the Currency Board was established for the purpose of issuing currency and protecting its value. The World Banking Mission which examined economic situation and potential development of a country. It had recommended composing a Centre Bank and eventually the Central Bank of Malaya Ordinance was established in 1959. However, the currency issuing authority […]
Stock market plays a significant role in the economic growth of a country. Stock exchange performance has an important role in global economics, because of their impact on economic activity. For example stock exchanges allow firms to acquire capital quickly, due to the effortlessness source of traded. Stock exchange activity, therefore, plays a significant role […]
Organization:- An organization is a person or group of people intentionally organized to accomplish a common goal or set of goals. Faysal Bank Limited:- Introduction of Faysal Bank Limited:- Faysal Bank Limited was incorporated in Pakistan on October 3, 1994, as a public limited company under the Companies Ordinance, 1984. On January 1, 2002, Al […]
