The Dinner Party Economics by Eveline Adomait and Richard Maranta provides a deep understanding of the macroeconomic environment and provides an opportunity to analyse the recent decisions of the Ontario government. The Ontario government recently released a new budget that states it will once again run a deficit for the following fiscal year (Morrow, 2016). This will be the tenth time in the last thirteen years that the government has spent more money that it has received from tax payers. With the continuation of borrowing, and the growth of the deficit in the upcoming years, the province is expected to reach the highest level of sub national debt across the entire globe. Currently the net debt of the province sits at about $296.1 billion…
Hi Professor, The key point I will takeaways from this week’s assignment is to understand how federal funds rate influences our money and the impact has on debt. I learned that Federal funds rate cut will typically lead to lower interest charges so understanding the system would be very helpful when I decide to make a large purchase in the future.…
ECON310-1603B-08 Instructor: Janet Hunter Unit 1- Macro and Microeconomic Concepts in a Global Context Amanda Kranning August 17, 2016 Part 1 With the development of a 5-year strategic growth plan for our growing company specialized in the production of semiconductors for the use of many technological equipment, many concerns arose to the factors that would come into play. We explored the following questions and have concluded the following: • How would international expansion affect your business? When entering into globalization, it is important to take in the variances that may arise in different cultures. The company would need to be aware of the logistic regulations, legalities, fluctuations in exchange rates, understanding market preferences,…
Operational Management – The Customer Relations Team serves as oversight on the USAA and Reverse complaint resolution processes that are managed by separate groups within Nationstar. Oversight includes ensuring both groups deliver timely complaint resolutions as well as providing trend reporting, intake, case creation, and quality assurance for said groups. The Audit and Risk Committee of the Board of Directors of the parent company shall periodically review complaint activity and trending as provided by management. The Compliance Committee periodically reviews complaint activity and trends complaint compliance testing and remediation results. The Chief Risk Officer of Originations (CRO), the Senior Vice President (SVP) of Credit Risk and Vice President (VP) of Credit Risk/Underwriting Support will meet at minimum semi-annually each calendar year to review Nationstar’s Credit Overlays to ensure they are current and consistent with Credit Risk analysis data.…
Conclusion Target When looking at the cover brand of Target, it is easy to assume that they are excelling quicker than many other retailers. After applying the balance sheet and income statement to the ratios, I found that Target is not as embellished as I once thought. I will show you what I found looking at the liquidity, debt management, asset management and, and profitability ratios and why it is a good time to buy Target stocks. Before I start with my analysis, I would like to point out years 2014 and 2015 in the Target Corporation.…
Anqi Li Li-Kuang Chen Siyao Song Econ 5103 May, 22nd, 2016 Submission Question 10 (a). What factors may have led to the changes in interest rate taken by RBA in 2011-2015 (Tradingeconomics.com, 2016) In 2011 the reserve bank of Australia decided to cut interest rates and continued to reduce them over the next 5 years.…
We can see the Appendix:3 Costco current liabilities increase all every year and high current liabilities can be considered risky. Because it means a lot of cash is expected to flow out of the business in the by future. If there aren’t enough current assets, providing that cash, the business could be in…
Due to the three percent reserve requirement elimination on non-transaction accounts at the end of 1990, it has roughly reduced the level of required reserve balances. Using the seven percent rate for federal funds as a proxy for the interest that could have been earned on these balances, the said cut in the reserve requirements had led to an increase of approximately $800 million in the yearly, pretax earnings of customers and their depositories. Almost the 2,500 depositories with vault cash that had been insufficient back then in meeting their reserve requirements were no longer bound to hold balances at the Federal Reserve that is brought upon by the cut in reserve requirements. For the said institutions, the reduction in the non-transaction…
With lower interest rates, consumers…
1. Looking at the bank’s balance sheet (report B01), what is your assessment of its overall situation? Do you observe any trends that appear especially favorable or unfavorable? The bank’s balance sheet shows trends that are both favorable and unfavorable.…
The Great Depression was an extreme time of struggle for not only the economy of America, but also the American people of every race. The Great Depression took place from 1929- 1939. One of the main reasons of what led to the Great Depression was the crash of the stock market. The crash itself propelled and drove Wall Street workers straight into a major fear and nightmare that was thought and imagined to never come.…
Systematic risk which is known as market risk that refers to the variation in the returns on securities, which arises due to macroeconomic factors of business such as social, economic and political factors. Changes to the government policies cause an effect or influences systematic risk. There are different types of systematic risk such as interest risk which refers to a risk that is cause by the fluctuation in the rate or the interest from time to time and affects interest bearing securities like debentures. Another is inflation risk is referred to as purchasing power risk and it affects the purchasing power of an individual. The last is market risk which is a risk that influences the price of a share which refers to the prices that will rise or fall consistently over a period of time along with other shares of the market (S,…
In order to provide a larger group of people with loans, the federal government enacted a number of acts such as the Community Reinvestment Act (CRA) of 1977, the Deregulation and Monetary Control Act of 1980, and the Tax Reform Act of 1986. According to the Federal Reserve, the Community Reinvestment Act (CRA) of 1977 was intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low and moderate-income neighborhoods, by providing these institutions with favorable incentives. (“Community Reinvestment Act (CRA)”, 2014). The Federal Reserve asserts that the Deregulation and Monetary Control Act of 1980 authorized depository institutions to offer interest bearing transaction accounts to individuals and nonprofit organizations as well as charge higher interest rates to borrowers with low credit scores. (“Depository Institutions Deregulation and Monetary Control Act of 1980”, 2013).…
Asset and Liability Management A credit side of a US bank’s balance sheet typically included floating-rate liabilities and long-term fixed-rate liabilities, whereas debit side consisted of floating-rate assets and long-term fixed-rate assets. Generally speaking, asset and liability management required the banks to match the economic characteristics of its cash in and out and the strategic decisions relative to interest rate exposure required banks to match their assets to liabilities effectively. If the debit and credit side of balance sheet were perfectly matched, then whether an increase or decrease of interest rates woud have no impact on both sides of the balance sheet as the gains or losses are equally offset. Theoretically, interest rate…
Introduction The key tenant of choosing a specific firm for analysis, is one having the history of outsourcing their Information Technology (IT), to a third party, only to regret the decision, and return, or back source, the IT service. An excellent example being the current largest bank in the United States; JP Morgan Chase. In 2004 JP Morgan Chase cancelled the remainder of a seven year, $5 billion IT contract with IBM.…