Life and Debt

consumption growth — a key demand-side driver of the economy — withered to 1,8%, its slowest since the 2008 global financial crisis. This doesn’t bode well for the second-quarter GDP figure, of which consumer spending accounts for around 60%. A heap of debt from store cards, microloans and unsecured credit has eroded disposable income, particularly of those in the lower-middle income band who are also battling rising inflation and utility costs. And though there’s scant respite on the horizon…

firms increases the agency cost of debt which can be reduced by using adequate tangible assets that may serve as collateral to issue debt (Jensen & Meckling, 1976). This is obvious because firms with greater tangible assets are more capable to service their debt than their peers with fewer tangible assets. Thus, tangibility may be positively related with leverage. TOT also suggests a positive relationship between tangibility and leverage because collateralized debt reduces the cost of fund and…

Cash vs. Credit Credit cards are cards given by the banks that are used for buying goods and services, and also offering credit services. Credit cards are being used as an alternative to cash, something that has come up as a result of technological changes. On the other hand, cash is the use of liquid money for shopping or buying of product. This is usually the money at hand that is used for shopping. People have different opinions about both, and different people have different preferences when…

1. During this period, the demand for extension of deposit insurance was gaining momentum on account of significant increase in the operations of Urban Cooperative Banks and their volume of deposits and more particularly in the context of sad experience of Palai Central Bank failure. As extension of deposit insurance to cooperative banking sector presupposes some semblance of Reserve Bank control over them, some provisions of B.R. Act, 1949 were made applicable to Urban Cooperative banks in 1966…

Speaker-Steven D. Levitt, labeled as a “rogue economist” explores the causes behind many of the world's economic situations, such as how a woman’s fight for the right to abort her baby led to the decrease in criminals 50 plus years later, or how crack gangs show an uncanny resemblance to a capitalist enterprise. Levitt, sees beyond the average economist and looks to solve the riddles that define our economy today. Many people may see Levitt’s ideas as anything but economics. That is because…

Renting Versus Buying a Home For many in the United States, homeownership is part of the “American Dream”, a subjective notion. Financially, this does not always make sense. This paper looks at the advantages and disadvantages of renting versus owning a home and explores the importance of performing a title search before entering into a purchase and sale agreement to buy a home. Advantages of Renting Career choices, family structure, health, and age drive personal financial planning. These same…

Persuasive Speech; Why You Invest For A Retirement Plan General Purpose: To Persuade Specific Purpose: By the end of my speech, my audience will be persuaded to invest for a retirement plan. Introduction Attention Getter: So how many of you have a piggy bank? If you did have one, then you already knows how it’s worked. Basically, You just saving your money in your piggy bank and by the time it full, then you open the piggy bank and get the money for personal uses. Thesis Statement: Today, I…

When applicants are declined they tend to fall into one of two categories: 1) overleveraged, meaning that they have too much debt already in place or 2) Affordability, which means that a significant budget shortfall has been identified. In a very small number of cases a credit report indicates a poor repayment history in which case we investigate further. Our repayments are…

2. Noise trader risk Noise trader risk refers to the risk that the mispricing worsens in the short run because there is possibility that pessimistic traders become even more pessimistic about the future. Once a position is taken, noise traders may drive prices farther from fundamental value, and the arbitrageur may be forced to invest additional capital, which may not be available, forcing an early liquidation of the position. 3. Information gap and financing issues Generally, the arbitrageurs…

financial statement that describes total asset and liabilities of a company during particular period of time. Financial Ratios • Valuation ratio : It is the ratio which measures the value of company • Leverage ratio: It is the ratio which evaluate debt and fixed expense of company • Liquidity ratio: It is the ratio which evaluate the company’s access to cash • Profitability ratio: It is the ratio which measures…