Article 1
Authors: Christian Ewerhart, Nuno Cassola, Steen Ejerskov, Natacha Valla
Title of the article: Manipulation in money markets
Journal Name: International Journal of Central Banking, March 2007
Summary
The article talks about the impact of manipulation in the implementation of the monetary policy. The authors claim that as a result of the impulsive reactions to the fundamental index of interbank interest rates, manipulation has turned out to be a major challenge for the operational enactment of the monetary policy. Therefore, to address the issue, the authors have focused on a microstructure model whereby a commercial bank can have a strategic alternative to the standing facilities of the central bank. They typify equilibrium where market rates are positively manipulated. The findings of the study prove that manipulation can be lucrative for a commercial bank with appropriate ex-ante features. And so, manipulation will continue to be a characteristic of equilibrium albeit stakeholders in the derivatives market create rational prospects regarding potential manipulation. The authors conclude by recognizing that the monetary authority has controlling techniques to fight manipulation and that further vigilance is required to ascertain that there is no operational manipulation (Ewerhart, Cassola, Ejerskov, & Valla, 2007).
Key points
The principal ideas discussed in the article regarding manipulation in the money markets include:
· Manipulation is a potential concern in money markets, particularly when a commercial bank holds a profitable position in which it can gain from may be an increase in interest rates.
· From an operational viewpoint, manipulation can increase volatility to the immediate interest rate thereby complicating the liquidity control of both the central bank and the commercial banks.
· Manipulation can have an impact on the market's confidence during a smooth execution of monetary policy, which will in turn affect the long-term refinancing conditions thereby upsetting the effectiveness of the monetary policy.
· The decision to manipulate a market by a commercial bank is contingent on factors such as the bank's general trading and deposit capacities, its readiness to take premeditated measures in search of profitable frontiers as well as the internal distribution of its risk budget between money markets.
· Competition amongst potential manipulators cannot impede the likelihood of manipulation.
· The immediate reaction by the central bank can help in reducing the volatility in the money markets caused by manipulations.
Reaction to the article
The microstructure model used in the study to show that manipulation can be lucrative for a commercial bank is efficient to illustrate the nature of financial markets. The model implies that investors can benefit from insider information and use it to change the nature of financial markets. In the financial stock market, insider information may lead to trading of stocks between invest ...
Functional regulation refers to oversight of industries to ensure they operate fairly and in the public's interest by focusing on functions and operations rather than specific rules. It aims to promote competition, protect consumers, and maintain stability. Institutional regulation sets rules for banks regarding capital requirements, liquidity, risk management, anti-money laundering, consumer protection, and supervision to protect customers and stability. While both ensure stability, financial stability focuses on the resilience of the financial system during shocks, while asset price stability aims for consistent, predictable asset values.
Determinants of interest rate empirical evidence from pakistanAlexander Decker
This document summarizes a research paper that analyzes the determinants of interest rates in Pakistan. It begins with background definitions of key rate indicators like KIBOR and inflation. It then states the purpose is to study the determinants of interest rates, with the hypotheses that inflation and exchange rates have a positive impact on interest rates. The literature review summarizes several past studies on factors influencing interest rates in countries like Pakistan, Austria, and Japan. These studies examined the relationship between policy rates, market rates, inflation, and economic growth.
Inferences from Interest Rate Behavior for Monetary Policy SignalingIOSR Journals
Weak mean reversion of interest rates towards the long term mean suggests high probability of agents in financial markets failing to interpret monetary policy signalling efficiently and financial market related interest rate unable to achieve equilibrium. Increased randomness penetrating interest rate markets is due to the weak monetary policy signalling effect which dilutes information flow from central banks’ to agents in the financial market. In such cases the effectiveness monetary policy erodes as it departs from the objectives of central banks and financial regulators
This document provides background information on a study about the effects of inflation on the profitability of commercial banks in Uganda. It discusses inflation and how it can reduce purchasing power. It also defines key terms like interest rates, lending, and consumer price index. The problem statement indicates that despite financial reforms, commercial bank performance in Uganda has remained poor due to high inflation, interest rates, and exchange rate volatility. The specific objectives are to determine the effects of exchange rates, interest rates, and consumer price index on bank profitability. The significance is that bank management can use the study to understand inflation's impacts and develop strategies to handle its effects.
Policy Rate, Lending Rate and Investment in Africa - A Phd proposal for defenseSamuel Agyei
The document discusses a PhD proposal on the relationship between policy rates, lending rates, and investment in Africa. It provides background on monetary policy transmission mechanisms and reviews literature on whether fiscal or monetary policy is more effective. The main channels of monetary policy transmission are discussed as the interest rate channel, credit channels, exchange rate channel, equity price channels, and expectations channel. The proposal aims to determine the main determinants of policy rates, lending rates, and deposit rates in Africa and how lending rates may affect investment.
Lesson 6 Discussion Forum Discussion assignments will beDioneWang844
Lesson 6 Discussion Forum :
Discussion assignments will be graded based upon the criteria and rubric specified in the Syllabus.
550 Words
For this Discussion Question, complete the following.
1. Review the two articles about bank failures and bank diversification that are found below this. Economic history assures us that the health of the banking industry is directly related to the health of the economy. Moreover, recessions, when combined with banking crisis, will result in longer and deeper recessions versus recessions that do occur with a healthy banking industry.
2. Locate two JOURNAL articles which discuss this topic further. You need to focus on the Abstract, Introduction, Results, and Conclusion. For our purposes, you are not expected to fully understand the Data and Methodology.
3. Summarize these journal articles. Please use your own words. No copy-and-paste. Cite your sources.
Please post (in APA format) your article citation.
Reply to Post 1: 160 words and Reference
Discussion on Bank’s failures and its diversification
Over the last two decades, business cycle volatility has decreased in the US. For example, some analysts claimed that companies handle inventory better today than ever, or that advances in financial systems have helped smooth industry volatility. Some emphasized stronger economic policy. Banking changes were also drastic in this same era, contributing to the restructuring and convergence of massive, global banking institutions in a better-organized structure. The article (Strahan, 2006) points out that some regulatory reform driven by individual countries rendered it possible for banks to preserve their resources and income by gradually diversifying from local downturns. Both low state volatility rates and a decline in partnerships between the local market and the central banking sector is a net influence on the diversification in banks. Considering the less fragile state economies following these intergovernmental financial reforms, there are some signs that financial convergence – while certainly not the only piece of the puzzle – has been less unpredictable.
Another article (Walter, 2005) argues that a long-standing reason for bank collapses during the crisis is a contagion, which contributes to systemic bank failures and the collapse of one bank initially. This indicates why several losses in the crisis period were unintentional, which ensured that the banks remained stable and endured without contagion-induced falls. The response to the contagion was the central government’s deposit policy, bringing an end to defaults. Nevertheless, since the sequence of errors began in the early 1920s, well before contagion was evident, the underlying trigger must be contagion.
Now it seems like the bank sector has undergone a shake-out that was worsened during the crisis by the deteriorating economic conditions. Although the reality that incidents occurred almost syno ...
The document summarizes a study that uses a structural vector autoregressive (SVAR) model to estimate the impact of unconventional monetary policy on macroeconomic variables in the UK. The study focuses on the bank lending channel as a possible transmission mechanism. The results from the baseline SVAR model show that unconventional monetary policy can generate inflation and increase output, but the effects are small and short-lived. However, the results are not robust for output based on sensitivity analysis. The study also does not find strong evidence that the bank lending channel is a significant transmission mechanism for unconventional monetary policy.
Functional regulation refers to oversight of industries to ensure they operate fairly and in the public's interest by focusing on functions and operations rather than specific rules. It aims to promote competition, protect consumers, and maintain stability. Institutional regulation sets rules for banks regarding capital requirements, liquidity, risk management, anti-money laundering, consumer protection, and supervision to protect customers and stability. While both ensure stability, financial stability focuses on the resilience of the financial system during shocks, while asset price stability aims for consistent, predictable asset values.
Determinants of interest rate empirical evidence from pakistanAlexander Decker
This document summarizes a research paper that analyzes the determinants of interest rates in Pakistan. It begins with background definitions of key rate indicators like KIBOR and inflation. It then states the purpose is to study the determinants of interest rates, with the hypotheses that inflation and exchange rates have a positive impact on interest rates. The literature review summarizes several past studies on factors influencing interest rates in countries like Pakistan, Austria, and Japan. These studies examined the relationship between policy rates, market rates, inflation, and economic growth.
Inferences from Interest Rate Behavior for Monetary Policy SignalingIOSR Journals
Weak mean reversion of interest rates towards the long term mean suggests high probability of agents in financial markets failing to interpret monetary policy signalling efficiently and financial market related interest rate unable to achieve equilibrium. Increased randomness penetrating interest rate markets is due to the weak monetary policy signalling effect which dilutes information flow from central banks’ to agents in the financial market. In such cases the effectiveness monetary policy erodes as it departs from the objectives of central banks and financial regulators
This document provides background information on a study about the effects of inflation on the profitability of commercial banks in Uganda. It discusses inflation and how it can reduce purchasing power. It also defines key terms like interest rates, lending, and consumer price index. The problem statement indicates that despite financial reforms, commercial bank performance in Uganda has remained poor due to high inflation, interest rates, and exchange rate volatility. The specific objectives are to determine the effects of exchange rates, interest rates, and consumer price index on bank profitability. The significance is that bank management can use the study to understand inflation's impacts and develop strategies to handle its effects.
Policy Rate, Lending Rate and Investment in Africa - A Phd proposal for defenseSamuel Agyei
The document discusses a PhD proposal on the relationship between policy rates, lending rates, and investment in Africa. It provides background on monetary policy transmission mechanisms and reviews literature on whether fiscal or monetary policy is more effective. The main channels of monetary policy transmission are discussed as the interest rate channel, credit channels, exchange rate channel, equity price channels, and expectations channel. The proposal aims to determine the main determinants of policy rates, lending rates, and deposit rates in Africa and how lending rates may affect investment.
Lesson 6 Discussion Forum Discussion assignments will beDioneWang844
Lesson 6 Discussion Forum :
Discussion assignments will be graded based upon the criteria and rubric specified in the Syllabus.
550 Words
For this Discussion Question, complete the following.
1. Review the two articles about bank failures and bank diversification that are found below this. Economic history assures us that the health of the banking industry is directly related to the health of the economy. Moreover, recessions, when combined with banking crisis, will result in longer and deeper recessions versus recessions that do occur with a healthy banking industry.
2. Locate two JOURNAL articles which discuss this topic further. You need to focus on the Abstract, Introduction, Results, and Conclusion. For our purposes, you are not expected to fully understand the Data and Methodology.
3. Summarize these journal articles. Please use your own words. No copy-and-paste. Cite your sources.
Please post (in APA format) your article citation.
Reply to Post 1: 160 words and Reference
Discussion on Bank’s failures and its diversification
Over the last two decades, business cycle volatility has decreased in the US. For example, some analysts claimed that companies handle inventory better today than ever, or that advances in financial systems have helped smooth industry volatility. Some emphasized stronger economic policy. Banking changes were also drastic in this same era, contributing to the restructuring and convergence of massive, global banking institutions in a better-organized structure. The article (Strahan, 2006) points out that some regulatory reform driven by individual countries rendered it possible for banks to preserve their resources and income by gradually diversifying from local downturns. Both low state volatility rates and a decline in partnerships between the local market and the central banking sector is a net influence on the diversification in banks. Considering the less fragile state economies following these intergovernmental financial reforms, there are some signs that financial convergence – while certainly not the only piece of the puzzle – has been less unpredictable.
Another article (Walter, 2005) argues that a long-standing reason for bank collapses during the crisis is a contagion, which contributes to systemic bank failures and the collapse of one bank initially. This indicates why several losses in the crisis period were unintentional, which ensured that the banks remained stable and endured without contagion-induced falls. The response to the contagion was the central government’s deposit policy, bringing an end to defaults. Nevertheless, since the sequence of errors began in the early 1920s, well before contagion was evident, the underlying trigger must be contagion.
Now it seems like the bank sector has undergone a shake-out that was worsened during the crisis by the deteriorating economic conditions. Although the reality that incidents occurred almost syno ...
The document summarizes a study that uses a structural vector autoregressive (SVAR) model to estimate the impact of unconventional monetary policy on macroeconomic variables in the UK. The study focuses on the bank lending channel as a possible transmission mechanism. The results from the baseline SVAR model show that unconventional monetary policy can generate inflation and increase output, but the effects are small and short-lived. However, the results are not robust for output based on sensitivity analysis. The study also does not find strong evidence that the bank lending channel is a significant transmission mechanism for unconventional monetary policy.
DETERMINANTS OF BANK-SPECIFIC AND MACROECONOMIC FACTORS THAT ARE AFFECTING T...Uni-assignment
DETERMINANTS OF BANK-SPECIFIC AND MACROECONOMIC FACTORS THAT ARE AFFECTING THE PROFITABILITY OF COMMERCIAL BANKS A STUDY ON THE BRIC FROM THE EMERGING MARKET
Monetary policy uses tools like interest rates and money supply to influence economic outcomes like growth, inflation, exchange rates, and unemployment. The objectives of monetary policy are price stability, credit availability, exchange rate stability, full employment, and high economic growth. The tools available to central banks include open market operations, changing reserve requirements, and setting bank interest rates like the discount rate. How monetary policy works is by influencing the cost of borrowing - lower rates encourage more spending, saving, and investment in assets like property and stocks.
This document examines the impact of monetary policy on the Nigerian economy from 1981 to 2008. The results of the analysis show that monetary policy, as represented by money supply, has a positive impact on GDP growth and the balance of payments, but a negative impact on inflation. The recommendations are that monetary policy should facilitate investment through appropriate interest rates, exchange rates, and liquidity management, and that the money market should provide more financial instruments to satisfy the growing sophistication of participants.
11.impact of injection and withdrawal of money stock on economic growth in ni...Alexander Decker
This document discusses a research study on the impact of money stock injection and withdrawal on economic growth in Nigeria from 1970 to 2008. The study uses regression analysis to examine the relationship between money stock and GDP. It finds that injecting money stock into the economy tends to reduce interest rates and increase investment, thereby boosting economic growth. However, it also notes that withdrawing money stock reduces the money available in the economy. The document provides background on monetary policy and debates between Keynesian and monetarist views. It also reviews previous related literature and discusses how the Central Bank of Nigeria can inject and withdraw money from the economy through tools like reserve requirements and interest rates.
6.[60 67]impact of injection and withdrawal of money stock on economic growth...Alexander Decker
This document discusses a research study on the impact of money stock injection and withdrawal on economic growth in Nigeria from 1970 to 2008. The study uses regression analysis to examine the relationship between money stock and GDP. It finds that injecting money stock into the economy tends to reduce interest rates and increase investment, thereby boosting economic growth. However, it also notes that withdrawing money stock reduces the money available in the economy. The document provides background on monetary policy and debates between Keynesian and monetarist views. It also reviews previous related literature and discusses how the Central Bank of Nigeria can inject and withdraw money from the economy through tools like reserve requirements and interest rates.
MACROECONOMIC FOCUS AND INDUSTRY ANALYSIS .docxsmile790243
MACROECONOMIC FOCUS AND INDUSTRY ANALYSIS 1
MACROECONOMIC FOCUS AND INDUSTRY ANALYSIS 2
Milestone Two
Macroeconomic Focus and Industry Analysis
NOTE: highlighted any change you made. Know which one is revised. Thanks.
Note: See all highlighted on yellow comments and revised it.THANKS.
Macroeconomic Focus and Industry Analysis
Macroeconomic forecast of the monetary school of thought.
From a monetarist perspective, regulation of the flow and circulation of money is important in determining and influencing preferred economic conditions in the United States. Reducing the circulation of money in the economy has many effects on the macroeconomic environment and determines the activities of other stakeholders in the financial market. From a monetarist school of thought, the government has sole responsibility to both country and citizens in ensuring favorable monetary policies are implemented that are akin to the prevailing economic conditions through the control of inflation and prevention of deflation in the country (Fair, 2011).
Reducing the supply of money in the economy has effects on the macro-economic Cory Kanth:
This point is not clear. It needs clarification in terms of better explanation.
environment as earlier mentioned. Reducing money circulation has both short run and a long run effect that shift practices in the economic environment. For instance, consumer spending is affected by the implementation of monetary policies. When the government implements monetary policies that do not favor money circulation, consumer spending capabilities are significantly reduced (Fair, 2011). The reduction in the spending is due to the reduced flow of money in the financial market which limits the funds accessible to consumers in the market. This policy is usually exercised in a bid to control inflation in the market where prices go up due to increased demand catalyzed by the availability of money in the hands of the spenders.
Reducing the growth of money circulation from a monetary perspective is empirical in determining the cost of labor. When there is a circulation of money in the market, individuals can opt for willing unemployment due to the availability of funds through other sources other than the low paying jobs (Gnimassoun & Mignon, 2015). Further analysis on the effect of reducing money circulation is the government stabilizes the prices of labor meaning little choice is left for personnel who may discriminate employment due to reduced wages or low salaries.
Investment spending is a factor directly affected by the increase in interest rates. This is because investors avoid high lending rates due to high interests that are amassed over operational periods. Moreover, increased lending rates affect investment spending since capital and ...
The paper re-assesses the impact of exchange rate regimes on macroeconomic performance. We test for the relationship between de jure and de facto exchange rate classifications on the one hand, and inflation, output growth and output volatility on the other. We find that, once high-inflation outliers are excluded from the sample, only hard exchange rate pegs are associated with lower inflation compared to the floating regime. There is no significant relationship between output growth and exchange rate regimes, confirming results from previous studies. De jure pegged regimes (broadly defined) are correlated with higher output volatility, but this relationship is reversed for the de facto classification. The last result points to a potential endogeneity problem present when the de facto classification is used in testing for the relationship between exchange rate behavior and macroeconomic performance.
Authored by: Maryla Maliszewska, Wojciech Maliszewski
Published in 2004
This document is a dissertation submitted by Martin Reilly in partial fulfillment of an MFin degree in international finance. The dissertation examines the impact of quantitative easing announcements by the US Federal Reserve on equity prices in the US. Specifically, it analyzes the stock price movements of 100 equities and three major indices in response to 7 announcements regarding the Federal Reserve's QE3 program between 2008-2014. The dissertation reviews previous literature on the topics of policy-rate guidance, interest rate effects, and large-scale asset purchase programs. It then outlines the methodology used, presents results showing the statistical significance of stock price movements on announcement days, and concludes that QE announcements had a measurable impact on equity prices.
2. IB UNIT 3 - INTERNATIONAL MONETARY SYSTEM .pptxShudhanshuBhatt1
This PPT deals with
The International Monetary System which refers to the framework of rules, institutions, and procedures that govern international financial transactions and exchange rate arrangements among countries.
This document discusses macroprudential policy tools for regulating banks' risk and capital levels. It outlines the evolution of macroprudential concepts over time and four key requirements for effective macroprudential policy: identifying imbalances before they become problems, selecting appropriate tools, calibrating tools based on data and coordination. Various tools are described for influencing bank balance sheets, borrowers/lenders, and addressing international spillovers. However, the document notes calibration and governance challenges, and questions the effectiveness of using capital controls as a macroprudential tool.
The document discusses asset liability management, capital markets, approaches to capital account convertibility, interest rate risk hedging techniques, value at risk, and integrated treasury management. It provides definitions and explanations of these topics. For asset liability management, it notes the objectives are to achieve a perfect match of assets and liabilities and deal with changes in present asset and liability values. It also discusses various interest rate hedging tools like FRAs, interest rate futures, options, swaps, caps and floors. Value at risk components include market factors, factor sensitivity, market volatility and defeasance period. Integrated treasury functions include reserve management, liquidity management, risk management and derivative products development.
Financial Development and Economic Growth Nexus in Nigeriaiosrjce
The study assessed the impact of financial development on economic growth in Nigeria using time
series data from 1970 to 2012. The Autoregressive Distributed Lag bounds testing approach to cointegration
was utilized for this study. The result from the ARDL model indicate that the variables for this study are
cointegrated while the error correction term appeared significant and confirms that short-run disequilibria are
corrected up to about 50 percent annually. The empirical results reveals that financial development exerts
positive and significant impact on economic growth in the long-run while trade liberalization variables exert
negative impact on economic growth in the long-run indicating non-competitive nature of non-oil domestic
products in the international market. In the short-run, domestic credit is insignificant which indicates a dearth
of investible funds in the economy. There is evidence that financial development policies influence economic
growth in the long-run and not in the short-run. This study among others recommends the urgent need to
implement policies that will strengthen the deposit mobilization and intermediation efforts in the banking system
in other to deepen the financial system. Nigerian trade performance should be improved through economic
diversification and further availability of funds to private sector at competitive interest rate in order to produce
internationally competitive products.
Application of taylor principle to lending rate pass through debate in nigeri...Alexander Decker
This document summarizes research on the pass-through of policy interest rates to retail lending rates in Nigeria. It finds that pass-through is incomplete, which contradicts the Taylor principle and implications for monetary policy effectiveness. The paper also reviews literature showing that retail rates typically do not fully adjust to changes in policy rates due to factors like bank-customer relationships and asymmetric information. An incomplete pass-through can interfere with the stabilizing role of monetary policy and alter macroeconomic stability.
Given the global financial crisis of 2007–2009, do you anticipate an.pdfindiaartz
Given the global financial crisis of 2007–2009, do you anticipate any changes to the systems of
fixed exchange rates and forward contracts in the near future? Are the changes you envision
strictly procedural or regulatory, or do you believe that some of these changes will intend to
provide safeguards against ethical lapses or loopholes?
Solution
As a result of the global financial crisis of 2007-2009, it showed that the protection companies
and investors have at the time to hedge against exchange rates instability were severely lacking
resulting in billions of dollars in lost wealth globally. Any financial market carries risks for its
users, but the main function of some markets is redistribution of risk. This is exactly what
forward markets and derivative markets do. They are more risky, but at the same time it is where
risks may be reduced or eliminated. Since the emergence of derivatives market, hedging
operations are increasingly performed in the futures and forward markets (due to minor
transaction costs, more expedient transactions, etc). Investors use forwards with a view to
protecting a certain yield level through the transfer of risk to other trade participants. This risk is
undertaken by speculators who take opposite positions from the hedgers and thus make the
market liquid. Hedgers, however, protect themselves by the transfer of risk to other participants
(speculators) against losses, but also reduce the possibility of profit increase.
Financial crises have many common features. In the background real economy, there is usually
the presence of an asset price “bubble” (or asset price inflation, for purists), a corresponding
credit boom, and large capital inflows into that economy (see, for example, Reinhart and Rogoff,
2008). However, these characteristics are necessary, but not sufficient, for a financial crisis to
develop. The severity of the crisis depends crucially on the underlying financial sector’s
exposure to these conditions and, in fact, the overall market’s uncertainty about the financial
sector’s exposure to them. A key role of financial regulation is to put limits on financial
institutions, so as to limit this exposure. While there are many reasons for the relative calm of the
U.S. financial system during the 50 years after the Great Depression, many analysts continue to
give credit to the financial regulation that was enacted at that time.
Given their inherently high leverage and the ease with which the risk-profile of financial assets
can be altered, banks and financial institutions have incentives to take on excessive risks.
Ordinarily, market mechanisms would be expected to price risks correctly and thereby ensure
that risk-taking in the economy is at efficient levels. However, there are two factors that have
impeded such efficient outcomes. First, with the repeal of most protections from the Banking Act
of the 1933, the only remaining protection against risk-shifting is capital requirements. If the
guarantees are m.
Implications of monetary policy for banks’ assets in nigeriaAlexander Decker
This document discusses the implications of monetary policy for banks' assets in Nigeria. It first provides background on monetary policy and its objectives in Nigeria. It then reviews theories around how monetary policy works, particularly the monetarist view that controlling the money supply can influence economic variables like inflation and output. The document also examines the channels through which monetary policy impacts banks, such as through required bank reserves or interest rates. The study aims to investigate how responsive Nigerian banks' assets are to monetary policy. It finds that raising interest rates through monetary policy negatively impacts bank lending in Nigeria, but has little effect on inflation. The study concludes monetary policy can influence bank lending but plays a limited role in inflation control in Nigeria.
QUALITY ASSURANCE FOR ECONOMY CLASSIFICATION BASED ON DATA MINING TECHNIQUESIJDKP
Researchers in the quality assurance field used traditional techniques for increasing the organization income and take the most suitable decisions. Today they focus and search for a new intelligent techniques in order to enhance the quality of their decisions. This paper based on applying the most robust trend in computer science field which is data mining in the quality assurance field. The cases study which is discussed in this paper based on detecting and predicting the developed and developing countries based on the indicators. This paper uses three different artificial intelligent techniques namely; Artificial Neural Network (ANN), k-Nearest Neighbor (KNN), and Fuzzy k-Nearest Neighbor (FKNN). The main target of this paper is to merge between the last intelligent techniques applied in the computer science with the quality assurance approaches. The experimental result shows that proposed approaches in this paper achieved the highest accuracy score than the other comparative studies as indicates in the experimental result section.
This document summarizes research examining the relationship between monetary policy and stock market returns using vector autoregression analysis. The results indicate:
1) Expansionary monetary policy shocks, as measured by negative shocks to the federal funds rate and positive shocks to nonborrowed reserves, are associated with subsequent increases in stock market returns across different industries and firm sizes.
2) Monetary policy shocks explain a significant portion of the forecast error variance in stock returns over a 24-month period, providing evidence that monetary policy has real effects on stock prices and returns.
3) The effects of monetary policy appear larger for smaller firms, supporting the hypothesis that monetary policy impacts firms' access to credit which affects small
Running head GLOBAL FINANCIAL SYSTEMS .docxjeanettehully
The global financial system plays an integral role in facilitating international capital flows. Through institutions like central banks, capital is guided between countries to enhance economic outcomes. A key event that impacted the system was the 2007-2008 financial crisis, which originated from the sub-prime mortgage crisis in the US. In response, countries have increased cooperation to manage financial risks across borders. The nature of the system is highly integrated and interconnected, allowing capital to move freely globally. Major regulatory initiatives in the US focus on structural changes to financial institutions following the crisis. Current regulations aim to improve risk management and leverage expertise through collaboration and analytics to increase stability. Effective policy goals allow the US system to compete with similar systems in countries like the UK and Canada.
Central banks use three main tools to conduct monetary policy: open market operations, changes to the discount rate, and changes to reserve requirements. Open market operations are the most important tool as they directly impact interest rates and the monetary base. The goals of monetary policy include price stability, economic growth, and high employment, though occasionally these goals can conflict in the short run. Central banks set targets for variables like inflation and GDP growth that are more directly influenced by their policy tools and can help achieve their broader economic and financial stability goals over time.
A report writingAt least 5 pagesTitle pageExecutive Su.docxfredharris32
A report writing
At least 5 pages
Title page
Executive Summary
Table of Contents (automated)
Clear Purpose and Problem
Clear Recommendations
Clear plan for implementing those recommendations
References page
easy-to-ready format
pdf so formatting doesn't shift
.
A reflection of how your life has changedevolved as a result of the.docxfredharris32
A reflection of how your life has changed/evolved as a result of the pandemic. The following are general questions to get you going (and to give you an idea of what I’m looking for).
· What has challenged you as a result of COVID-19?
· In what way has it changed your thinking of some of the topics we covered in class – food, gender, race, class, etc.?
· How has this pandemic affected your perspective of food, social media, news, and/or critical thinking (such as evaluating sources/information)?
· In what way has the shift into online learning affected your perspective of education, access to technology, and/or social inequity?
How you answer the above questions (all, a few, or just one) is up to you. In other words, what you say and how you say it, as well as what medium you want to convey the reflection is entirely your choice. The story, nonfiction essay, poem, play, art – these are all viable options in creating your reflection. But more than anything else, reflect on the impact of COVID-19 in a personal way.
2-3 pages
Double-spaced
.
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Monetary policy uses tools like interest rates and money supply to influence economic outcomes like growth, inflation, exchange rates, and unemployment. The objectives of monetary policy are price stability, credit availability, exchange rate stability, full employment, and high economic growth. The tools available to central banks include open market operations, changing reserve requirements, and setting bank interest rates like the discount rate. How monetary policy works is by influencing the cost of borrowing - lower rates encourage more spending, saving, and investment in assets like property and stocks.
This document examines the impact of monetary policy on the Nigerian economy from 1981 to 2008. The results of the analysis show that monetary policy, as represented by money supply, has a positive impact on GDP growth and the balance of payments, but a negative impact on inflation. The recommendations are that monetary policy should facilitate investment through appropriate interest rates, exchange rates, and liquidity management, and that the money market should provide more financial instruments to satisfy the growing sophistication of participants.
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This document discusses a research study on the impact of money stock injection and withdrawal on economic growth in Nigeria from 1970 to 2008. The study uses regression analysis to examine the relationship between money stock and GDP. It finds that injecting money stock into the economy tends to reduce interest rates and increase investment, thereby boosting economic growth. However, it also notes that withdrawing money stock reduces the money available in the economy. The document provides background on monetary policy and debates between Keynesian and monetarist views. It also reviews previous related literature and discusses how the Central Bank of Nigeria can inject and withdraw money from the economy through tools like reserve requirements and interest rates.
6.[60 67]impact of injection and withdrawal of money stock on economic growth...Alexander Decker
This document discusses a research study on the impact of money stock injection and withdrawal on economic growth in Nigeria from 1970 to 2008. The study uses regression analysis to examine the relationship between money stock and GDP. It finds that injecting money stock into the economy tends to reduce interest rates and increase investment, thereby boosting economic growth. However, it also notes that withdrawing money stock reduces the money available in the economy. The document provides background on monetary policy and debates between Keynesian and monetarist views. It also reviews previous related literature and discusses how the Central Bank of Nigeria can inject and withdraw money from the economy through tools like reserve requirements and interest rates.
MACROECONOMIC FOCUS AND INDUSTRY ANALYSIS .docxsmile790243
MACROECONOMIC FOCUS AND INDUSTRY ANALYSIS 1
MACROECONOMIC FOCUS AND INDUSTRY ANALYSIS 2
Milestone Two
Macroeconomic Focus and Industry Analysis
NOTE: highlighted any change you made. Know which one is revised. Thanks.
Note: See all highlighted on yellow comments and revised it.THANKS.
Macroeconomic Focus and Industry Analysis
Macroeconomic forecast of the monetary school of thought.
From a monetarist perspective, regulation of the flow and circulation of money is important in determining and influencing preferred economic conditions in the United States. Reducing the circulation of money in the economy has many effects on the macroeconomic environment and determines the activities of other stakeholders in the financial market. From a monetarist school of thought, the government has sole responsibility to both country and citizens in ensuring favorable monetary policies are implemented that are akin to the prevailing economic conditions through the control of inflation and prevention of deflation in the country (Fair, 2011).
Reducing the supply of money in the economy has effects on the macro-economic Cory Kanth:
This point is not clear. It needs clarification in terms of better explanation.
environment as earlier mentioned. Reducing money circulation has both short run and a long run effect that shift practices in the economic environment. For instance, consumer spending is affected by the implementation of monetary policies. When the government implements monetary policies that do not favor money circulation, consumer spending capabilities are significantly reduced (Fair, 2011). The reduction in the spending is due to the reduced flow of money in the financial market which limits the funds accessible to consumers in the market. This policy is usually exercised in a bid to control inflation in the market where prices go up due to increased demand catalyzed by the availability of money in the hands of the spenders.
Reducing the growth of money circulation from a monetary perspective is empirical in determining the cost of labor. When there is a circulation of money in the market, individuals can opt for willing unemployment due to the availability of funds through other sources other than the low paying jobs (Gnimassoun & Mignon, 2015). Further analysis on the effect of reducing money circulation is the government stabilizes the prices of labor meaning little choice is left for personnel who may discriminate employment due to reduced wages or low salaries.
Investment spending is a factor directly affected by the increase in interest rates. This is because investors avoid high lending rates due to high interests that are amassed over operational periods. Moreover, increased lending rates affect investment spending since capital and ...
The paper re-assesses the impact of exchange rate regimes on macroeconomic performance. We test for the relationship between de jure and de facto exchange rate classifications on the one hand, and inflation, output growth and output volatility on the other. We find that, once high-inflation outliers are excluded from the sample, only hard exchange rate pegs are associated with lower inflation compared to the floating regime. There is no significant relationship between output growth and exchange rate regimes, confirming results from previous studies. De jure pegged regimes (broadly defined) are correlated with higher output volatility, but this relationship is reversed for the de facto classification. The last result points to a potential endogeneity problem present when the de facto classification is used in testing for the relationship between exchange rate behavior and macroeconomic performance.
Authored by: Maryla Maliszewska, Wojciech Maliszewski
Published in 2004
This document is a dissertation submitted by Martin Reilly in partial fulfillment of an MFin degree in international finance. The dissertation examines the impact of quantitative easing announcements by the US Federal Reserve on equity prices in the US. Specifically, it analyzes the stock price movements of 100 equities and three major indices in response to 7 announcements regarding the Federal Reserve's QE3 program between 2008-2014. The dissertation reviews previous literature on the topics of policy-rate guidance, interest rate effects, and large-scale asset purchase programs. It then outlines the methodology used, presents results showing the statistical significance of stock price movements on announcement days, and concludes that QE announcements had a measurable impact on equity prices.
2. IB UNIT 3 - INTERNATIONAL MONETARY SYSTEM .pptxShudhanshuBhatt1
This PPT deals with
The International Monetary System which refers to the framework of rules, institutions, and procedures that govern international financial transactions and exchange rate arrangements among countries.
This document discusses macroprudential policy tools for regulating banks' risk and capital levels. It outlines the evolution of macroprudential concepts over time and four key requirements for effective macroprudential policy: identifying imbalances before they become problems, selecting appropriate tools, calibrating tools based on data and coordination. Various tools are described for influencing bank balance sheets, borrowers/lenders, and addressing international spillovers. However, the document notes calibration and governance challenges, and questions the effectiveness of using capital controls as a macroprudential tool.
The document discusses asset liability management, capital markets, approaches to capital account convertibility, interest rate risk hedging techniques, value at risk, and integrated treasury management. It provides definitions and explanations of these topics. For asset liability management, it notes the objectives are to achieve a perfect match of assets and liabilities and deal with changes in present asset and liability values. It also discusses various interest rate hedging tools like FRAs, interest rate futures, options, swaps, caps and floors. Value at risk components include market factors, factor sensitivity, market volatility and defeasance period. Integrated treasury functions include reserve management, liquidity management, risk management and derivative products development.
Financial Development and Economic Growth Nexus in Nigeriaiosrjce
The study assessed the impact of financial development on economic growth in Nigeria using time
series data from 1970 to 2012. The Autoregressive Distributed Lag bounds testing approach to cointegration
was utilized for this study. The result from the ARDL model indicate that the variables for this study are
cointegrated while the error correction term appeared significant and confirms that short-run disequilibria are
corrected up to about 50 percent annually. The empirical results reveals that financial development exerts
positive and significant impact on economic growth in the long-run while trade liberalization variables exert
negative impact on economic growth in the long-run indicating non-competitive nature of non-oil domestic
products in the international market. In the short-run, domestic credit is insignificant which indicates a dearth
of investible funds in the economy. There is evidence that financial development policies influence economic
growth in the long-run and not in the short-run. This study among others recommends the urgent need to
implement policies that will strengthen the deposit mobilization and intermediation efforts in the banking system
in other to deepen the financial system. Nigerian trade performance should be improved through economic
diversification and further availability of funds to private sector at competitive interest rate in order to produce
internationally competitive products.
Application of taylor principle to lending rate pass through debate in nigeri...Alexander Decker
This document summarizes research on the pass-through of policy interest rates to retail lending rates in Nigeria. It finds that pass-through is incomplete, which contradicts the Taylor principle and implications for monetary policy effectiveness. The paper also reviews literature showing that retail rates typically do not fully adjust to changes in policy rates due to factors like bank-customer relationships and asymmetric information. An incomplete pass-through can interfere with the stabilizing role of monetary policy and alter macroeconomic stability.
Given the global financial crisis of 2007–2009, do you anticipate an.pdfindiaartz
Given the global financial crisis of 2007–2009, do you anticipate any changes to the systems of
fixed exchange rates and forward contracts in the near future? Are the changes you envision
strictly procedural or regulatory, or do you believe that some of these changes will intend to
provide safeguards against ethical lapses or loopholes?
Solution
As a result of the global financial crisis of 2007-2009, it showed that the protection companies
and investors have at the time to hedge against exchange rates instability were severely lacking
resulting in billions of dollars in lost wealth globally. Any financial market carries risks for its
users, but the main function of some markets is redistribution of risk. This is exactly what
forward markets and derivative markets do. They are more risky, but at the same time it is where
risks may be reduced or eliminated. Since the emergence of derivatives market, hedging
operations are increasingly performed in the futures and forward markets (due to minor
transaction costs, more expedient transactions, etc). Investors use forwards with a view to
protecting a certain yield level through the transfer of risk to other trade participants. This risk is
undertaken by speculators who take opposite positions from the hedgers and thus make the
market liquid. Hedgers, however, protect themselves by the transfer of risk to other participants
(speculators) against losses, but also reduce the possibility of profit increase.
Financial crises have many common features. In the background real economy, there is usually
the presence of an asset price “bubble” (or asset price inflation, for purists), a corresponding
credit boom, and large capital inflows into that economy (see, for example, Reinhart and Rogoff,
2008). However, these characteristics are necessary, but not sufficient, for a financial crisis to
develop. The severity of the crisis depends crucially on the underlying financial sector’s
exposure to these conditions and, in fact, the overall market’s uncertainty about the financial
sector’s exposure to them. A key role of financial regulation is to put limits on financial
institutions, so as to limit this exposure. While there are many reasons for the relative calm of the
U.S. financial system during the 50 years after the Great Depression, many analysts continue to
give credit to the financial regulation that was enacted at that time.
Given their inherently high leverage and the ease with which the risk-profile of financial assets
can be altered, banks and financial institutions have incentives to take on excessive risks.
Ordinarily, market mechanisms would be expected to price risks correctly and thereby ensure
that risk-taking in the economy is at efficient levels. However, there are two factors that have
impeded such efficient outcomes. First, with the repeal of most protections from the Banking Act
of the 1933, the only remaining protection against risk-shifting is capital requirements. If the
guarantees are m.
Implications of monetary policy for banks’ assets in nigeriaAlexander Decker
This document discusses the implications of monetary policy for banks' assets in Nigeria. It first provides background on monetary policy and its objectives in Nigeria. It then reviews theories around how monetary policy works, particularly the monetarist view that controlling the money supply can influence economic variables like inflation and output. The document also examines the channels through which monetary policy impacts banks, such as through required bank reserves or interest rates. The study aims to investigate how responsive Nigerian banks' assets are to monetary policy. It finds that raising interest rates through monetary policy negatively impacts bank lending in Nigeria, but has little effect on inflation. The study concludes monetary policy can influence bank lending but plays a limited role in inflation control in Nigeria.
QUALITY ASSURANCE FOR ECONOMY CLASSIFICATION BASED ON DATA MINING TECHNIQUESIJDKP
Researchers in the quality assurance field used traditional techniques for increasing the organization income and take the most suitable decisions. Today they focus and search for a new intelligent techniques in order to enhance the quality of their decisions. This paper based on applying the most robust trend in computer science field which is data mining in the quality assurance field. The cases study which is discussed in this paper based on detecting and predicting the developed and developing countries based on the indicators. This paper uses three different artificial intelligent techniques namely; Artificial Neural Network (ANN), k-Nearest Neighbor (KNN), and Fuzzy k-Nearest Neighbor (FKNN). The main target of this paper is to merge between the last intelligent techniques applied in the computer science with the quality assurance approaches. The experimental result shows that proposed approaches in this paper achieved the highest accuracy score than the other comparative studies as indicates in the experimental result section.
This document summarizes research examining the relationship between monetary policy and stock market returns using vector autoregression analysis. The results indicate:
1) Expansionary monetary policy shocks, as measured by negative shocks to the federal funds rate and positive shocks to nonborrowed reserves, are associated with subsequent increases in stock market returns across different industries and firm sizes.
2) Monetary policy shocks explain a significant portion of the forecast error variance in stock returns over a 24-month period, providing evidence that monetary policy has real effects on stock prices and returns.
3) The effects of monetary policy appear larger for smaller firms, supporting the hypothesis that monetary policy impacts firms' access to credit which affects small
Running head GLOBAL FINANCIAL SYSTEMS .docxjeanettehully
The global financial system plays an integral role in facilitating international capital flows. Through institutions like central banks, capital is guided between countries to enhance economic outcomes. A key event that impacted the system was the 2007-2008 financial crisis, which originated from the sub-prime mortgage crisis in the US. In response, countries have increased cooperation to manage financial risks across borders. The nature of the system is highly integrated and interconnected, allowing capital to move freely globally. Major regulatory initiatives in the US focus on structural changes to financial institutions following the crisis. Current regulations aim to improve risk management and leverage expertise through collaboration and analytics to increase stability. Effective policy goals allow the US system to compete with similar systems in countries like the UK and Canada.
Central banks use three main tools to conduct monetary policy: open market operations, changes to the discount rate, and changes to reserve requirements. Open market operations are the most important tool as they directly impact interest rates and the monetary base. The goals of monetary policy include price stability, economic growth, and high employment, though occasionally these goals can conflict in the short run. Central banks set targets for variables like inflation and GDP growth that are more directly influenced by their policy tools and can help achieve their broader economic and financial stability goals over time.
Similar to Article 1Authors Christian Ewerhart, Nuno Cassola, Steen Ejersk.docx (20)
A report writingAt least 5 pagesTitle pageExecutive Su.docxfredharris32
A report writing
At least 5 pages
Title page
Executive Summary
Table of Contents (automated)
Clear Purpose and Problem
Clear Recommendations
Clear plan for implementing those recommendations
References page
easy-to-ready format
pdf so formatting doesn't shift
.
A reflection of how your life has changedevolved as a result of the.docxfredharris32
A reflection of how your life has changed/evolved as a result of the pandemic. The following are general questions to get you going (and to give you an idea of what I’m looking for).
· What has challenged you as a result of COVID-19?
· In what way has it changed your thinking of some of the topics we covered in class – food, gender, race, class, etc.?
· How has this pandemic affected your perspective of food, social media, news, and/or critical thinking (such as evaluating sources/information)?
· In what way has the shift into online learning affected your perspective of education, access to technology, and/or social inequity?
How you answer the above questions (all, a few, or just one) is up to you. In other words, what you say and how you say it, as well as what medium you want to convey the reflection is entirely your choice. The story, nonfiction essay, poem, play, art – these are all viable options in creating your reflection. But more than anything else, reflect on the impact of COVID-19 in a personal way.
2-3 pages
Double-spaced
.
A Princeton University study argues that the preferences of average.docxfredharris32
A Princeton University study argues that "the preferences of average American appear to have only a minuscule, near zero, statistically non-significant impact upon public policy." If that is indeed the case, can we still say that we have strong political institutions in the United States? Does this case pose a threat to our future economic growth?
must be atleast 400 words
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A rapidly growing small firm does not have access to sufficient exte.docxfredharris32
A rapidly growing small firm does not have access to sufficient external financing to accommodate its planned growth. Discuss what alternatives the company can consider in order to implement its growth strategy.
How can the firm determine the cost of those alternative sources of capital?
Provide your explanations and definitions in detail and be precise. Comment on your findings. Provide references for content when necessary. Provide your work in detail and explain in your own words. Support your statements with peer-reviewed in-text citation(s) and reference(s).
.
A psychiatrist bills for 10 hours of psychotherapy and medication ch.docxfredharris32
A psychiatrist bills for 10 hours of psychotherapy and medication checks for a deceased woman. Has he committed fraud or abuse? Why? Can the deceased woman’s estate press charges if the bills were sent to Medicare, and not to the family?
S
upported by at least two references.
Must be 250 words
.
A project to put on a major international sporting competition has t.docxfredharris32
A project to put on a major international sporting competition has the following major deliverables: Sports Venues, Athlete Accommodation, Volunteer Organization, Security, Events, and Publicity (which has already been broken down into pre-event publicity and post-event publicity.) Prepare a WBS for any single major deliverable on the list. Remember the 100 percent rule, and number your objectives.
.
A professional services company wants to globalize by offering s.docxfredharris32
A professional services company wants to globalize by offering services to businesses and governments in other countries. What are the risks in globalization of services and how should the company address those risks in order to move forward with their plan?
Follow the ERM holistic Approach .Below are the holistic approach key points
1. Identify risk/challenges
2. Assess risks
3. Select risk response
4. Monitor risk
5. Communicate and report risks
6. Align ERM process to goals and objectives.
Below are challenges that need follow the ERM holistic approach:
1. Physical distance and Employees requirement in new locations.
2. Local taxes and export fees.
.
A presentation( PowerPoint) on the novel, Disgrace by J . M. Coetzee.docxfredharris32
A presentation( PowerPoint) on the novel, Disgrace by J . M. Coetzee. t
This is the prompt:
" Black and white relationships in Disgrace cross lines from the personal to the political. Examine and evaluate the way South African politics impacts the personal relationships for Professor Lurie and his daughter."
8 slides
.
a presentatiion on how the over dependence of IOT AI and robotics di.docxfredharris32
a presentatiion on how the over dependence of IOT AI and robotics distances the need for a medical practicioner for a patient .
do you agree with the technology or do you prefer the traditional medical system with doctor pateint diagnosis?
give examples or instances on situtions
.
A nursing care plan (NCP) is a formal process that includes .docxfredharris32
A
nursing care plan (NCP)
is a formal process that includes correctly identifying existing needs, as well as recognizing potential needs or risks. Care plans also provide a means of communication among nurses, their patients, and other healthcare providers to achieve health care outcomes. Without the nursing care planning process, quality and consistency in patient care would be lost.
Medical Diagnosis: Alzheimer's disease
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A nurse educator is preparing an orientation on culture and the wo.docxfredharris32
A nurse educator is preparing an orientation on culture and the workplace. There is a need to address the many cultures that seek healthcare services and how to better understand the culture. This presentation will examine the role of the nurse as a culturally diverse practitioner.
Choose a culture that you feel less knowledgeable about: HISPANIC OR MEXICAN
Compare this culture with your own culture: ISLAND PACIFIC
Analyze the historical, socioeconomic, political, educational, and topographical aspects of this culture
What are the appropriate interdisciplinary interventions for hereditary, genetic, and endemic diseases and high-risk health behaviors within this culture?
What are the influences of their value systems on childbearing and bereavement practices
What are their sources of strength, spirituality, and magicoreligious beliefs associated with health and health care?
What are the health-care practices: acute versus preventive care; barriers to health care; the meaning of pain and the sick role; and traditional folk medicine practices?
What are cultural issues related to learning styles, autonomy, and educational preparation of content for this culture?
This PowerPoint® (Microsoft Office) or Impress® (Open Office) presentation should be a minimum of 20 slides, including a title, introduction, conclusion and reference slide, with detailed speaker notes and recorded audio comments for all content slides. Use at least four scholarly sources and make certain to review the module’s Signature Assignment Rubric before starting your presentation. This presentation is worth 400 points for quality content and presentation.
Total Point Value of Signature Assignment:
400 points
.
A NOVEL TEACHER EVALUATION MODEL 1 Branching Paths A Nove.docxfredharris32
A NOVEL TEACHER EVALUATION MODEL 1
Branching Paths: A Novel Teacher Evaluation Model for Faculty Development
Kim A. Park,1 James P. Bavis,1 and Ahn G. Nu2
1Department of English, Purdue University
2Center for Faculty Education, Department of Educational Psychology, Quad City University
Author Note
Kim A. Park https://orcid.org/0000-0002-1825-0097
James P. Bavis is now at the MacLeod Institute for Music Education, Green Bay, WI.
We have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Ahn G. Nu, Dept. of
Educational Psychology, 253 N. Proctor St., Quad City, WA, 09291. Email: [email protected]
jforte
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Page numbers begin on the first page and follow on every subsequent page without interruption. No other information (e.g., authors' last names) are required.
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Note: Green text boxes contain explanations of APA 7's paper formatting guidelines...
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...while blue text boxes contain directions for writing and citing in APA 7.
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The paper's title should be centered, bold, and written in title case. It should be three or four lines below the top margin of the page. In this sample paper, we've put three blank lines above the title.
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The running head is a shortened version of the paper's title that appears on every page. It is written in all capitals, and it should be flush left in the document's header. No "Running head:" label is included in APA 7. If the paper's title is fewer than 50 characters (including spaces and punctuation), the actual title may be used rather than a shortened form.
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Author notes contain the following parts in this order:
1. Bold, centered "Author Note" label.
2. ORCID iDs
3. Changes of author affiliation.
4. Disclosures/ acknowledgments
5. Contact information.
Each part is optional (i.e., you should omit any parts that do not apply to your manuscript, or omit the note entirely if none apply).
Format each item as its own indented paragraph.
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Authors' names appear two lines below the title. They should be written as follows:
First name, middle initial(s), last name.
Omit all professional titles and/or degrees (e.g., Dr., Rev., PhD, MA).
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Authors' affiliations follow immediately after their names. If the authors represent multiple institutions, as is the case in this sample, use superscripted numbers to indicate which author is affiliated with which institution. If all authors represent the same institution, do not use any numbers.
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ORCID is an organization that allows researchers and scholars to register professional profiles so that they can easily connect with one another. To include an ORCID iD in your author note, simply provide the author's name, followed by the green iD icon (hyperlinked to the URL that follows) and a hyperlink to the appropriate ORCID page.
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A Look at the Marburg Fever OutbreaksThis week we will exami.docxfredharris32
A Look at the Marburg Fever Outbreaks
This week we will examine: Marburg Fever in Africa.
MARBURG VIRUS
The largest and deadliest outbreak of Marburg hemorrhagic fever on record occurred in 2005. The Ministry of Health (MOH) in Angola reported a total of 374 cases, including 329 deaths reported countrywide. The Angolan Government, WHO and other partners,
established a surveillance system for identification of suspected cases and follow up of their contacts. Mobile teams were sent to the field to investigate rumors, obtain clinical specimens for laboratory tests, hospitalize suspected patients and monitor their contacts
B. For the Marburg fever case, you will discuss the major obstacles and difficulties that public health officials and health care workers had in controlling the outbreak of Marburg fever and the solutions they found to these difficulties. Your response must also include the following:
1. What is Marburg hemorrhagic fever?
2. How is Marburg hemorrhagic fever prevented?
3. What needs to be done to address the threat of Marburg hemorrhagic fever?
Must be at least 250 words and supported by at least two references
.
A network consisting of M cities and M-1 roads connecting them is gi.docxfredharris32
A network consisting of M cities and M-1 roads connecting them is given. Cities are labeled with distinct integers within the range [o. (M-1)] Roads connect cities in such a way that each pair of distinct cities is connected either by a direct road or along a path consisting of direct roads. There is exactly one way to reach any city from any other city. In other words, cities and direct roads form a tree. The number of direct roads that must be traversed is called the distance between these two cities. For example, consider the following network consisting of ten cities and nine roads: 2 0 Cities 2 and 4 are connected directly, so the distance between them is 1. Cities 4 and 7 are connected by a path consisting of the direct roads 4-0,0-9 and 9-7; hence the distance between them is 3. One of the cities is the capital, and the goal is to count the number of cities positioned away from it at each of the distances 1,2,3,.., M -1. If city number 1 is the capital, then the cities positioned at the various distances from the If city number 1 is the capital, then the cities positioned at the various distances from the capital would be as follows: . 9 is at a distance of 1 · 0, 3, 7 are at a distance of 2; 8,4 are at a distance of 3; 2, 5, 6 are at a distance of 4. Write a function: class
Solution
t public int[] solution(int[] T)h that, given a non-empty array T consisting of M integers describing a network of M cities and M 1 roads, returns an array consisting of M-1 integers, specifying the number of cities positioned at each distance 1, 2,..., M - 1. Array T describes a network of cities as follows: · if T[P] Q and P = Q, then P is the capital; if T[P Q and P Q, then there is a direct road between cities P and Q. For example, given the following array T consisting of ten elements: T[2] 4 T[6]8 T[9] = 1 = 9 T[7] the function should return [1, 3, 2,3,0,0,0,0,01, as explained above. Write an efficient algorithm for the following assumptions: M is an integer within the range [1..100,000]; each element of array T is an integer within the range [0.M-1] there is exactly one (possibly indirect) connection between any two distinct cities.
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A minimum 20-page (not including cover page, abstract, table of cont.docxfredharris32
A minimum 20-page (not including cover page, abstract, table of contents, and references), double-spaced, APA formatted academic research paper.
Topic - Cash flow estimation practices
The structure of the paper is as follows:
Abstract
Introduction
Statement of the problem
The purpose of the study
Method of the study (qualitative, quantitative or mixed study)
Literature review (10-15 peer-reviewed articles)
Results & Analysis
Conclusion & recommendations
References
.
A major component of being a teacher is the collaboration with t.docxfredharris32
A major component of being a teacher is the collaboration with the other teachers in your grade level to share ideas, resources, and learning activities in order to enhance instruction and meet the diverse needs of students.
For this assignment, create a 7-10 slide digital presentation professional development, for your peers, highlighting two forms of technology that can be used to enhance math instruction.
Include a title slide, reference slide, and presenter’s notes.
For each form of technology, include the following components:
A detailed description and how the technology works to engage students and enhance math instruction
A rationale for the benefits of using the technological tools to facilitate the creation or transfer of knowledge and skills
The safety precautions including the safe, legal, and ethical use of technology both at home and at school.
Description of how each form of technology can be used to support collaboration with families, students, and school personnel.
Description of how each form of technology engages students in collaboration with others in face-to-face or virtual environments
Support your findings with a minimum of three scholarly resources.
.
a mad professor slips a secret tablet in your food that makes you gr.docxfredharris32
a mad professor slips a secret tablet in your food that makes you grow up as normal,but then remain at that age until you are 200 years old.this means you cant die until at least 2201 AD. in 2150,you send your diary back through time to you,today , in 2012.by reading the the diary,describe life in london in 2150AD descrie technology,and people you meat
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A New Mindset for Leading Change [WLO 1][CLO 6]Through.docxfredharris32
A New Mindset for Leading Change [WLO: 1][CLO: 6]
Throughout the MAECEL program so far, you have encountered many opportunities to consider how you can make a difference as a professional and as a leader in the field of early childhood education. As Fullan (1993) states, as educators our purpose is “to make a difference in the lives of students regardless of background, to help produce citizens who can live and work productively in increasingly dynamically complex societies” (p. 4). Meaning, you, as an early childhood education professional and leader, have incredible capacity and potential to be a change agent who makes a positive difference in the lives of young children. With this new mindset in mind, please respond to each of the following prompts to share your insights on influencing educational change through action research.
· If you were to implement this study, what would be your next steps? How might implementation support better outcomes for young children and their families?
· Given the conditions discussed in Chapter 7 of the Mills (2014) textbook, discuss how you could support these conditions in an organization from the perspective of your current or future role in early childhood education.
· Share what it means to you to be a change agent in early childhood education and how you can leverage inquiry and research skills to promote quality education for young children.
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A N A M E R I C A N H I S T O R YG I V E M EL I B.docxfredharris32
A N A M E R I C A N H I S T O R Y
G I V E M E
L I B E R T Y !
W . W . N O R T O N & C O M P A N Y
N E W Y O R K . L O N D O N
★ E R I C F O N E R ★
Bn
SE AGU L L F I F T H E DI T ION
V o l u m e 2 : F r o m 1 8 6 5
Victoria
Vancouver
Spokane
Tacoma
Seattle
Olympia
Eugene
Salem
Portland
Salinas
Reno
Fresno
Oakland
Sacramento
San Francisco
San Jose
Carson City
Tijuana
Bakersfield
Escondido
Lancaster
Oceanside
Oxnard
Pasadena
Long Beach
Los Angeles
San Diego
Las Vegas
Tucson
Phoenix
Salt Lake City
Boise
Helena
Calgary
Regina
Saskatoon
Winnipeg
Bismarck
Sioux Falls
Pierre
Lincoln
Omaha
Pueblo
Colorado Springs
Denver
Cheyenne
Albuquerque
El Paso
Ciudad Juárez
Santa Fe
MatamorosMonterrey
Nuevo Laredo
Brownsville
Laredo
Corpus
Christi
Austin
San Antonio
Houston
Abilene
Beaumont
Lubbock
Waco
Fort Worth
Dallas
Amarillo
Baton Rouge
Lafayette
Shreveport
Jackson
New Orleans
Little Rock
Wichita
Oklahoma City
Tulsa
Kansas City
Topeka
Independence
Jefferson City
Springfield
St. Louis
Peoria
Springfield
Cedar Rapids
Des Moines
Madison Milwaukee
Chicago
Gary
Minneapolis St. Paul
Green
Bay
Lansing
Fort Wayne
Toledo
Detroit
Toronto
Akron
Erie
Buffalo
Cleveland
Cincinnati
Indianapolis
Columbus
Lexington
Louisville Frankfort
Mobile
Montgomery
Birmingham
Columbus
Macon
Atlanta
Miami
Fort Lauderdale
Tampa
Orlando
Tallahassee Jacksonville
Savannah
Columbia
Charlotte
Raleigh
Chattanooga
Knoxville
Memphis
Nashville
Norfolk
Richmond
Charleston
Washington, D.C.
Baltimore
Annapolis
Dover
Pittsburgh
Philadelphia
Harrisburg
Trenton
Ottawa
Montréal
Albany
Concord
Montpelier
Hartford
New Haven
Providence
Newark
Boston
New York
Québec
Fredericton
Augusta
Nassau
Santa Barbara
Monterey
Walla Walla
Coeur
d'Alene
Pocatello
Idaho Falls
Jackson
St. George
Moab
Flagstaff
Missoula
Billings
Casper
Laramie
Steamboat
Springs
Glenwood
Springs
Odessa
Galveston
Huron
Williston
Fargo
International Falls
Duluth
Oshkosh
Sault Ste. Marie
Traverse
City
Port Huron
Sioux City
Hannibal
Jonesboro
Texarkana
Natchitoches
Biloxi
Tupelo
Pensacola
Key West
Charleston
Wilmington
Asheville
Roanoke
Atlantic City
Watertown
Burlington
Portland
Bangor
Mulege
Hermosillo
Anchorage
Fairbanks
Juneau
Hilo
Honolulu
San Juan
WA S H I N GTO N
O R E G O N
N E VA DA
C A L I F O R N I A
A R I ZO N A
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This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
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There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
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Article 1Authors Christian Ewerhart, Nuno Cassola, Steen Ejersk.docx
1. Article 1
Authors: Christian Ewerhart, Nuno Cassola, Steen Ejerskov,
Natacha Valla
Title of the article: Manipulation in money markets
Journal Name: International Journal of Central Banking, March
2007
Summary
The article talks about the impact of manipulation in the
implementation of the monetary policy. The authors claim that
as a result of the impulsive reactions to the fundamental index
of interbank interest rates, manipulation has turned out to be a
major challenge for the operational enactment of the monetary
policy. Therefore, to address the issue, the authors have focused
on a microstructure model whereby a commercial bank can have
a strategic alternative to the standing facilities of the central
bank. They typify equilibrium where market rates are positively
manipulated. The findings of the study prove that manipulation
can be lucrative for a commercial bank with appropriate ex-ante
features. And so, manipulation will continue to be a
characteristic of equilibrium albeit stakeholders in the
derivatives market create rational prospects regarding potential
manipulation. The authors conclude by recognizing that the
monetary authority has controlling techniques to fight
manipulation and that further vigilance is required to ascertain
that there is no operational manipulation (Ewerhart, Cassola,
Ejerskov, & Valla, 2007).
Key points
The principal ideas discussed in the article regarding
manipulation in the money markets include:
· Manipulation is a potential concern in money markets,
particularly when a commercial bank holds a profitable position
in which it can gain from may be an increase in interest rates.
· From an operational viewpoint, manipulation can increase
2. volatility to the immediate interest rate thereby complicating
the liquidity control of both the central bank and the
commercial banks.
· Manipulation can have an impact on the market's confidence
during a smooth execution of monetary policy, which will in
turn affect the long-term refinancing conditions thereby
upsetting the effectiveness of the monetary policy.
· The decision to manipulate a market by a commercial bank is
contingent on factors such as the bank's general trading and
deposit capacities, its readiness to take premeditated measures
in search of profitable frontiers as well as the internal
distribution of its risk budget between money markets.
· Competition amongst potential manipulators cannot impede
the likelihood of manipulation.
· The immediate reaction by the central bank can help in
reducing the volatility in the money markets caused by
manipulations.
Reaction to the article
The microstructure model used in the study to show that
manipulation can be lucrative for a commercial bank is efficient
to illustrate the nature of financial markets. The model implies
that investors can benefit from insider information and use it to
change the nature of financial markets. In the financial stock
market, insider information may lead to trading of stocks
between investors rather than directly from the company to
investors (Hillier, Grinblatt, & Titman, 2011). As a result, the
company will not gain from the trade since the money will be
exchanged between two investors. This is similar to the
manipulative nature of the commercial bank that ultimately
leads to money market volatility making it difficult for the
central bank to control the money markets.
Furthermore, the authors stress that the manipulation by the
commercial bank can only be reduced through the immediate
reaction by the central bank (Ewerhart, Cassola, Ejerskov, &
Valla, 2007). This will reduce the likelihood of market
3. volatility or changes in interest rates that would be profitable
for the manipulators. Interest rates can be altered by many
factors including inflation, the liquidity premium and risk-free
rate, which in turn affect the value of money (Saunders &
Cornett, 2012). According to the study, manipulation may result
in interest rate volatility. Therefore, regulators of financial
markets need to respond immediately to any anomalies in the
market such as insider trading to prevent unplanned alterations
to the market interest rates. In conclusion, the study clearly
gives an illustration of the consequences of inadvertent change
in interest rates on the financial markets.
Article 2
An economy should have a stable financial system. It is
observed that after the Great Depression in the financial system,
several regulatory measures were implemented. The regulatory
policies that were enacted have been seen to be successful in
creating a safer financial system than it was before. However, it
is imperative to note that despite the fact that the measures
achieved their goal in solving the problem of the Great
Depression, it is still not adequate for addressing the risk in the
financial system. The economic environment is changing
gradually therefore calling for a need to use more efficient
measures to ensure that financial stability is maintained. This
essay is going to do a review on the article concerning the
major elements of creating a road to financial security.
The financial system can be said to comprise of two parts. The
markets where the resources exist, and prices determined and
the institutions such as the banks that have the balance sheets to
monitor and screen. These two elements have to work in
cooperation so as to create stability and balance of the financial
system. Banking regulation aim at minimizing all forms of risk
that the individual institutions may incur. Liquidity requirement
is meant to constrain any liquid liabilities that may result in
funding illiquid assets. It is brought into effect by the liquidity
4. coverage ratio and the net stable funding ratio. They aim at
limiting liquidity transformation and controlling the level of
maturity transformation respectively. Moreover, they seek in
ensuring that banks have an adequate stock of high-quality
liquid assets. It ensures that it can be converted easily into cash
to meet liquidity needs in case of a stress scenario (Cecchetti &
others, 2015).
Capital regulation is another means of ensuring financial
stability. It is masked with implementing of discretionary time-
varying capital requirements and maintaining a steady state
level of capital. Notably, any changes to the capital
requirements can lead to influence on the computation of the
related risks and the capital itself or the ratio between these
two. It is observed that on an unweight basis capital should be
in the range of ten percent. On the other hand, risk-weighted
capital requirements should be in the range of ten to twelve
percent. Banks should ensure to maintain a measure of risk
sensitivity. It will necessitate the avoidance of loading up on
risky assets. One monetary policy that can bring this into effect
is the use of rules that are based on the changes in the economic
activity. It will be more efficient than the standards based on
the level of economic activity.
Markedly, time-varying capital requirements is seen to affect
the economic activity similarly. It influences asset prices,
changing loan supply, financial conditions and borrowers net
worth. Macroprudential policy is observed to affect political
resistance and governance (Cecchetti & others, 2015).
Moreover, time-varying capital requirements concerns itself
with the ability of decision makers to make timely decisions and
responses. Information and recognition flags are set to indicate
the level of vulnerability of the financial system. On the other
hand, the implementation and transmission lags are essential in
determining the duration it will take for the policy makers to
increase the capital requirements and the rate of impact it will
5. have on the financial system. It is worthy to note that a higher
capital requirement than the one that is currently in place is
needed to promote a stable financial system. Time-varying
discretion policies should be avoided to prevent any form of
risks.
References
Cecchetti, S. G., & others. (2015). The Road to Financial
Stability: Capital Regulation, Liquidity Regulation, and
Resolution. International Journal of Central Banking, 11(3),
127–139.
Article 3
In this case, we look at the primary issue of article review to get
the message in a detailed form. The paper will focus on
“Manipulation in Money Markets” by Christian Ewerhart(2007).
In the main currency areas, interest rates derivatives are among
the most actively traded financial instruments. Manipulation
challenge has increased for the operational implementation of
monetary policy, with figures of positions reacting instantly to
the underlying index of daily interbank rates. In this case,
interest rates are manipulated positively following strict
probability. In the monetary policy implementation, a large
number of central banks globally have paid attention to
increasing some short-term money market rates of interest.
Various financial institutions would increase policy rates to
attract more revenues since market rates are expected to rise.
The strategy this banks use to achieve this is borrowing money
from local banks and later deposit the money with the central
bank. The manipulator net position will increase since the rates
rise temporarily (Ewerhart et al., 2007).
In this case, manipulation took place in several episodes. The
first episode was between may24-June 23, 2000.During this
period, the policy rates rose from 3.75 percent to 4.25%. There
were several speculations on the policy switch and tie scale. In
6. the year 2000 the prices doubled, and the impact was felt on the
bank system changing. Ahead of a crucial part of maintenance
changed the liquidity conditions recourse, and there was an
immediate increase of the EONIA. However, the second episode
of money market manipulation took place in April 24-May 23,
2003. During this period, there was a fall in the policies by 50.
EONIA rose beyond the people expectations or rather a
minimum point. Following this reaction, a response was put
forward and borrowing a large amount of money was the
response. The act had immense impacts since EONIA fell
immediately.
For two reasons manipulation is undesirable mainly for a central
bank. Manipulation has the likelihood to add capriciousness to
the overnight rates and to obfuscate the liquidity management of
commercial and central banks, from an operational perspective.
In a smooth implementation of monetary policy manipulation
may impact the market’s confidence, which may affect
refinancing conditions on long-term and, therefore, monetary
policy effectiveness (Ewerhart et al., 2007). Having sufficient
information is important in this case for traders (participants) to
avoid any manipulation. In the money market, there is various
ways manipulation takes place.
In case of high money circulation in the market, the central
bank will correct the situation with increasing borrowing rates,
and this encourages savings. People will save more and borrow
less and this in turn lowers money circulation. However, with
small money distribution the central bank corrects this case
through reducing interest rates to increase borrowing and
discourage savings. The additional value for her derivatives
position and cost of taking control of the market prices are the
challenges the manipulator faces. The trader will be induced to
leverage her derivatives position and to in turn manipulate the
money market, as it turns out that the tradeoff will sometimes,
but not always affect the trader. A public good lowers
individual incentives for manipulation, yet the problem is not
entirely. Apparently, this problem (manipulation) requires
7. solutions, and there are a number that have been proposed. Fine
tuning and limiting of the path set by the firm facilities are
some of the corrective policies.
References
Ewerhart, C., Cassola, N., Ejerskov, S., & Valla, N. (2007).
Manipulation in money markets. Swiss Finance Institute
Research Paper, (29). Retrieved from
http://www.ijcb.org/journal/ijcb07q1a4.pdf
Article 4
Author of Article: Ricardo Sanchez
Serrano_____________________
Title of Article:_ Issues Affecting the Banking
Industry____________________
Journal/ Newspaper/ Web site—Name and date:
_____http://www.thebanker.com January
2010____________________
Summary of Article:
The article is about the banking industry and financial
institutions. The banking industry has a major role to play in the
market development and how they operate. They help countries
and communities by lending and raising money as well as
getting involved in the development. Their involvement in the
development sector helps because the banks institutions tend to
face some challenges at times. Some of the specific financial
issues faced include the ethical issue. The financial institutions
that include all sort of banks, pension funds, credit agencies,
insurance, private firms among others are all sources of wealth.
How financial institutions perform is based on how well they
can maximize their financial assets, how well their investment
decisions are and the return they get from them, the profits they
get from loans, credits, issued equity and the bonds. Financial
institutions are now sophisticated and complex on how they run
8. their operations, their services, and products. Everything tends
to be a big puzzle with these banking institutions as time
progresses like how they invest their resources and promote
their credit facilities.
Key Points:
The key points derived from this article are:
· Banks today cannot give full details about their
clients/customers like where, when and how they operate. This
is because they do not follow up as much, and the customers
change and keep changing as the banks also do.
· Banks are intermediaries of money, and so it is important to
understand how the bank handles it. The individual investors
own the money that the bank invests and, therefore, have a right
to follow up with the specific banking institution. The financial
institutions supply and move the money. In case anything goes
wrong, the banking sector is responsible and not the individual
investor.
· Banks are a source of generating wealth for its shareholders.
They do this by charging interest rates on loans and other
activities that do need financing.
· The current events that affect these financial issues include
usury whereby, banks charge unreasonable and unfair interests
and tend to take extra benefits from their customers. They
encourage customers into taking credits that in turn have very
high-interest rates hence going into huge debts.
· Engaging in speculative investments is yet another issue. The
banks practice investments and credit lending practices that
cannot be trusted. They take an unnecessary risk that in turn can
cost the banking institution. This can also lead to losses for the
customers, and their wealth destroyed completely. Financial
professionals and bankers should be responsible and take
responsible action when lending and investing their clients’
money.
· Banks give loans to companies and individuals and them in
turn use the money to market. Some of the companies financed
use the money to run illegal businesses like selling illegal
9. firearms and investing in weapons and arms or financing illegal
groups or cartels in different countries. This is possible because
no regulation(s) prevents the financial institutions from lending
money to companies or to invest in them.
Your Reaction to Article:
The article gives an insight of how the bank and financial
institutions run as well as the things that go on and helps the
people understand that as customers and individual
shareholders, they should be involved and understand how their
money is being used. The institutions should always do a
background on the companies involved in investing or giving
loans. It encourages the individual investors and helps them
understand that they have a duty to pressure the banks and
regulators and know how their resources are being used.
Article 5
Author of Article: Ricardo Caballero and Arvind
Krishnamurthy.
Title of Article: Exchange Rate Volatility and the Credit
Channel in Emerging Markets: A Vertical Perspective.
Journal/ Newspaper/ Web site—Name and date:
http://www.ijcb.org: 19th May 2005.
Summary of Article:
The article evaluates how foreign exchange volatility affects the
ability of financial institutions to provide credit in emerging
markets. The author notes that volatility in exchange rates leads
to a sudden decrease in capital flows. They note that during the
moderate crisis, monetary expansion will solve the problem.
However, during a severe crisis, the policy effects significantly
vanishes. The higher exchange rate reduces the dollar value of
domestic collateral to an equilibrium point with domestic
financial markets and the external constraint. In such a context,
the expansionary monetary policy increases the value of internal
collateral but exacerbates the depreciation of exchange rates.
Therefore, the policy has minimal effect on the aggregate
financial activities.
10. Key Points:
· The credit constraints in emerging markets originate from the
country level or the market level.
· The paper evaluates the insurance effects of monetary policy.
· The paper also assesses whether contractionary or
expansionary monetary policy is the best in offsetting foreign
exchange volatility.
Your Reaction to Article:
One would agree with the author’s conclusion that monetary
expansion policy have minimal effects during the severe crisis
as witnessed in Greece crisis. However, in stable economies
where the change in the exchange rate is sudden, expanding the
money market serves to shift the equilibrium position in a
firm’s credit (Devereux, 2003). Expansion policies increase a
company’s lending capacity due to the increased liquidity.
However, the increase in cash means the firm will have to offer
loans at a lower interest rates. Engel (2003) also arrives at the
conclusion by noting that during the crisis, the dollarized
balance sheets undo the benefits of lowering interest rates.
Secondly, one would concur with the authors’ view of how
monetary policy affects a firm’s insurance decisions. An
individual monetary rule influences a company’s ex-ante
decisions due to the relative price of domestic to international
liquidity (Caballero, 2004). If a corporation foresees a dogged
defense of exchange rates, it also anticipates a decline in the
value of domestic and international liquidity value. For
instance, if the Yen depreciates against the dollar, the
government may initiate expansionary policy by lowering the
interest rates. However, most financial institutions will prefer to
buy more dollars while withholding their foreign exchange
reserves as they fear the Yen will continue to depreciate.
11. Instruction: Please solve following 10 questions (show the
detailed works). Each question is accounted for 10 points. There
is 20% deduction for untyped homework. This homework is due
at 11:59 pm on Sept. 14, 2015.
1. Consider a coupon bond that has a $1,000 par value and a
coupon rate of 12% The bond is currently selling for $1,280 and
has 12 years to maturity. What is the bond’s yield to maturity?
2. Consider a bond that promises the following cash flows.
Year : 0 1 2 3 4
Promised Payments: 150 170 210 260
Assuming all market interest rates are 14%, what is the duration
of this bond?
3. You are willing to pay $25,000 now to purchase a perpetuity
which will pay you and your heirs $2,200 each year, forever,
starting at the end of this year. If your required rate of return
does not change, how much would you be willing to pay if this
were a 15-year, annual payment, ordinary annuity instead of a
perpetuity?
4. The demand curve and supply curve for bonds are estimated
using the following equations:
Demand: P = - (5/6)Q + 1400
Supply: P = (1/3)Q + 700
12. As the stock market continued to rise, the Federal Reserve felt
the need to increase the interest rates. As a result, the new
market interest rate increased to 14%, but the equilibrium
quantity remained unchanged. What are the new demand and
supply equations? Assume parallel shifts in the equations.
5. The one-year interest rate over the next 10 years will be 3%,
4.5%, 6%, 7.5%, 9%, 10.5%, 13%, 14.5%, 16%, 17.5%. Using
the pure expectations theory, what will be the interest rates on a
4-year bond, 7-year bond, and 10-year bond?
6. A bank has two, 3-year commercial loans with a present
value of $80 million. The first is a $30 million loan that
requires a single payment of $37.8 million in 3 years, with no
other payments until then. The second is for $50 million. It
requires an annual interest payment of $4.5 million. The
principal of $50 million is due in 3 years. The general level of
interest rates is 7%. What is the duration of the bank’s
commercial loan portfolio?
7. One-year T-bill rates are 3% currently. If interest rates are
expected to go up after 4 years by 3% every year, what should
be the required interest rate on a 10-year bond issued today?
8. Calculate the present value of a $1,000 zero-coupon bond
with 8 years to maturity if the required annual interest rate is
12%.
9. Calculate the duration of a $1,000, 5% coupon bond with
three years to maturity. Assume that all market interest rates is
8% for next three years.
10. An economist has estimated that, near the point of
equilibrium, the demand curve and supply curve for bonds can
be estimated using the following equations:
Demand: P =-(2/7)Q + 1000
Supply: P = (1/7)Q + 700
a. What is the expected equilibrium price and quantity of bonds
in this market?
b. Given your answer to part (a), which is the expected interest
rate in this market?