...Assignment 1: Complexities of the US Financial System Describe how the US financial markets impact the economy, businesses, and individuals. US financial markets play an important role in contributing to the health and efficiency of the economy, businesses, and individuals. (Spiegel, 2002) Because there is a strong relationship between the health of the economy and financial market development and economic growth, even a slight dip in the financial markets can radically effect how the economy, businesses, and individuals respond. (Ask Dr Econ, 2005) Financial markets “facilitate the raising of capital in the capital markets, the transfer of risk in the derivatives market, price discovery, global transactions with integration of financial markets, the transfer of liquidity in the money markets, and international trade in the current markets.” (Financial Markets, 2013) When the financial markets are doing well, “firm-level, industry-level, and cross-country studies all suggest that the level of financial development exerts a large, positive impact on economic growth.” (MIT, 2001) When financial markets are not doing well, interest rates on loans will increase and access to credit decreases. Interest rates are higher because of the risk that banks feel are involved. In times of high risk, interest rates go up. It is a way for banks to limit their losses and make as much money back – just in case a default occurs. So those businesses that are able to get credit are finding...
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...Complexities of the US Financial System Impact of US Financial Markets on Economy In the United States the effect of financial markets on the economy is very high considering the fact that the majority of the main companies listed in the stock exchange play a pivotal role in contributing towards the country’s economic growth. Thus, any depreciation as it pertains to performance plummets the company’s ratings in the stock market impacting negatively on the country’s economy. Nonetheless, sometimes the dynamics evident in the stock market has limited effect on the company particularly when it entails other issues (Evans & Hnatkovska, 2005). For instance, the occurrence of the economic downturn in 2008 led to the crashing of the stock market which lead to negative economic growth; both of these are a reflection of the impact that US financial markets have on the country’s economy. Impact on businesses: US financial markets have some effect on businesses because favorable portions of the financial markets impact on businesses positively, although not always considering that some businesses solely depend on their performance to grow as opposed to the position of the stock market (Chong & Miffre, 2009). Impact on individuals: Good performance of the financial markets means improved confidence of those affected by the economy: hence, they tend to spend their money more willingly and borrow more money from banks to cater for their expenditures. Usually, when the position of the...
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...Title: Complexities of the U.S Financial System Students Name: Shellie Richardson Professor’s Name: Karin Torres, MBA Course Title: Principles Of Finance Date: July 28, 2013 The United States financial (wealth) system is largely considered to be the most recognized system in the world. Financial markets are designed to skillfully direct the movement of money and savings and investments in the economy. By doing this the United States financial system stimulates the growth and the production of money, goods and services. The combination of an established and secure financial markets and institutions systems, in addition to a varied collection of financial goods and services , will meet the needs of borrowers, lenders and investors therefore the overall economy can be maintained. How does the U.S. Financial market impact the economy, businesses, and individuals the fact is that an established and securely operating financial market plays an important role in contributing to the strength and productivity of an economy? There is a strong correlation between financial market development and economic growth. For example, in Chapter 1 of their 2001 book, Financial Structure and Economic Growth, editors Demirgüç-Kunt and Levine concluded: Financial markets (such as those that trade stocks or bonds), instruments (from bank CDs to futures and derivatives), and institutions (from banks to insurance companies to mutual funds and pension funds) provide opportunities for investors...
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...ASSIGNMENT 1 – COMPLEXITIES OF THE U.S. FINANCIAL To purchase this Click here: http://www.activitymode.com/product/fin-100-wk-4-assignment-1-complexities-of-the-u-s-financial/ Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 100 WEEK 4 ASSIGNMENT 1 - COMPLEXITIES OF THE U.S. FINANCIAL The U.S. financial system has many complexities and it is impacted by several environmental factors, including federal regulations and the economy. Write a two to three (2-3) page paper in which you: 1. Describe how the U.S. financial markets impact the economy, businesses, and individuals. 2. Explain the role of the U.S. Federal Reserve, the Federal Reserve Chairman, and Board, indicating its effectiveness in today’s economic environment. Provide support for rationale. 3. Explain how interest rates influence the U.S. and global financial environment. Provide support for explanation. 4. Describe how exchange rates may impact a business’s decision to operate in foreign markets. Click Here to Buy this; http://www.activitymode.com/product/fin-100-wk-4-assignment-1-complexities-of-the-u-s-financial Activity mode aims to provide quality study notes and tutorials to the students of FIN 100 Week 4 Assignment 1 - Complexities of the U.S. Financial in order to ace their studies. Activity mode - Best Home Work Tutorials FIN 100 WEEK 4 ASSIGNMENT 1 – COMPLEXITIES OF THE U.S. FINANCIAL To purchase this Click here: http://www.activitymode.com/product/fin-100-wk-4-assignment-1-complexities-of-the-u-s-financial/ ...
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...Complexities of the U.S. Financial System Professor Crawford Finance 100 10/28/2014 Complexities in the US Financial System The Federal Reserve System is the most powerful component of the US Economy. The Federal Reserve is made up of four components. There is a seven member Board of Governors that direct monetary policy. A 12 member Federal Open Market Committee (FMOC) that sets the target for the federal funds rate which also guides the Federal Interest Rate. 12 regional banks that supervise commercial banks in their respective regions, these regional banks also implement monetary policy for the commercial banks to follow. The FED also has a designated Economist who provide information and reports to congress. The Federal Reserve’s primary function is to control inflation without triggering a recession. The FED’s work together with the Treasury Department to avoid or counter any global financial crisis. The FED has been diligent in the past 20 years and more effective in the past decade to assist in the rebound of the economy crashing in the mid 2000’s. “The financial crisis of 2008 led to the worst recession since the Great Depression of 1929. This was despite aggressive efforts by the Federal Reserve and Treasury Department to prevent the U.S. banking system from collapsing. As a result of the recession, housing prices fell 31.8% (What Was the 2008 Financial Crisis? Causes, Costs and Whether It Could Happen Again, by Kimberly Amendeo) more than...
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...Complexity of the US Financial System Michelle Bates Professor: Ahmad Zia Rawish Strayer University May 6, 2015 Principle of Finance 100 Complexity of the US Financial System How does the US financial market impact the economy? The financial market has different financial products including derivatives, bonds, and stocks among others. Derivatives are very complicated financial products that gain value from stocks and bonds (Altig, Christiano, Eichenbaum & Linde, 2011). These financial products are futuristic in the sense that they are based on future investments. Their effect on the economy is that they reduce its volatility. How does the US financial market impact business? One of the most significant impacts of financial markets on businesses is access to credit (Garbade, 2014). When the financial markets are not doing well, the general access to credit for businesses is also affected. Banks and financial institutions reduce their lending rates as a precautionary measure to avoid defaulters. As a result, businesses cannot get access to loans hence impeding their ability to continue running and expanding. How does the US financial market impact individual? When the financial markets are failing, the borrowing rates increases while the number of investors reduces (Garbade, 2014). Due to the raised borrowing rates, the prices of commodities go up reducing individuals’ purchasing power. As the prices go up, people are left...
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...Complexities of the US Financial System The U.S. financial markets impact the economy, businesses, and individuals in a multitude of ways. Businesses are impacted by the U.S. Financial markets through investing. For instance, if the number of investors lowers dramatically businesses will have a hard time finding funds to grow their business or even start it up at all. Individuals who invest or trade are both positively and negatively impacted. According to Kimberly Amandeo, " The investors profit when the companies increase their earnings, which keeps the U.S. economy growing. Its easy to buy stocks, but takes alot of knowledge to buy stocks in the right company". If not done properly or funds are not pulled before a business fails, the individual- who may have their livelyhood riding on this- could lose everything. The investor is needed in order to keep businesses going. If individuals just decided to stop investing businesses would fail and the U.S. would fall into even more debt. The U.S. Financial market acts as a chain that connects the economy, businesses, and individual together and shows us just how well the economy is doing. If one is effected, both negatively or positively, so are the other two. The US Financial System is not limited to the financial and stock market. A Financial System is a composition of multiple financial institutions, markets, regulatory bodies, and depositors. A Money Market is where low-risk, highly liquid, short-term instruments are created...
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...explore the advantages and disadvantages of both policies and try to apply the policies to real world scenarios. In the end the research will conclude as to what policy is the most suitable, trying to find a balance between the two types in order for accountants to have an easier and more efficient way of recordkeeping, as well as finding a balance in order to provide assurance and accurate recordkeeping for the business, for the investors and anyone else involved in the business. | Introduction In the wake of the US corporate scandals, such as Enron and Lehman Brothers, the integrity of accounting standards were under review. Shareholders’ confidence in financial statements and public accounting firms was shaken, due to the fact that the United States had always used rules-based accounting standards to provide a greater amount of detail and compliance to the Securities Exchange Commission (SEC). Rules-based accounting standards are governed by the Financial Accounting Standards Board (FASB) which primarily uses a GAAP accounting versus the International Accounting Standard Board (IASB) that uses IFRS principle-based accounting. Although both boards use rules as a foundation to accounting the IASB...
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...questions raised by the financial crisis over the objective of general purpose financial reporting, and how the IFRS Foundations Trustees wish to resolve them”. The financial crisis which started during the summer 2007 is, by its magnitude and its scale, the strongest crisis that happened since 1929. Begun as a bank crisis which have destroyed and “all the major US bulge-bracket firms” (Molyneux & Valdez, 2010, page 263), the crisis spread like wildfire and has rapidly engulfed the entire financial world. Even if everybody agree to recognise that accounting was not the root cause of financial crisis, its role to prevent future financial crisis could be significant. Many questions have been raised by financial crisis over the objective of general purpose financial reporting. The first question is related to the purpose of the financial reporting. In fact, the actual crisis has showed that, more than ever, the financial sector needs prudential regulators (Goodhart, et al.,2003, page 10) (Molyneux & Valdez, 2010, page 470) (Spencer, 2000, page 211); because the information given by the financial reporting is an important tool for regulators, standard setters and regulators need then to collaborate. However, their interest could overlap or be in conflict. In these cases, it is important to formulate clearly the main aim of financial reporting. The lacks of global standard as well as the inconsistency of some standards are two other weaknesses of the financial crisis that, by...
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...are a necessity. In the electronic world we now live in, the accounting information system requires us to utilize computer systems and intranets, which transfer vital information at a much more rapid speed. Information systems used for accounting purposes is a function used by businesses internally. These highly sophisticated systems report financial data for users from entry-level staff, key decision makers, stakeholders, and investors. These systems provide owners of all businesses and management the supporting data required for making critical decisions, although these systems may encounter threats which can obstruct their overall effectiveness. Account information systems can become so complex for businesses they prove to be ineffective and inefficient for the everyday use in business operations. These high complexities may take place when business owners or management make efforts to construct an information system which gathers far more information that is needed, or use the system for reasons outside the scope of their original purpose. Businesses who lack the adequate technology or employees familiar with accounting systems may find this technology difficult to use. Management must ensure the accounting systems implemented within their organizations are functional throughout the company by all users. Because of the complexities just discussed, the accounting information systems can be the focus of fraud or exploitation by company employees. Employees can obtain...
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...Complexities of the Financial System Brandi Humphrey Professor Joseph Arbeiter Finance 100 January 15, 2014 Financial markets are defined as locations or electronic forums that facilitate the flow of funds among investors, businesses, and governments. There are four types of financial markets and they are; debt securities markets, equity securities markets, derivative securities markets, and foreign exchange markets. Financial markets are also known to facilitate the transferring of previously issued debt and equity securities from existing to new investors. Financial markets are where traders buy and sell stocks, bonds, derivatives, foreign exchange and commodities. U.S. financial markets impact the economy because it can influence prices, whether they increase or decrease. For instance when there is too much money in the real estate market, interest rates plummet. This caused peopled to take out loans, even if they were considered ineligible buyers thus creating unacceptable risks to investors who began selling them to get rid of them. This causes a crash in the real estate market and also leaves the investors high and dry. Finance is one of the most important functions of any business. Companies are financed in one or two ways; debt or equity. The definition of debt is the amount owed or that one is bound to pay to or perform for another and equity is defined as the funds supplied by the owners that represent their residual claim on the firm. Debt financing is a negative...
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...iBM 1. 2. Analyze IBM strategies, to remix their businesses in order to move to the emerging higher-value spaces, in Macro and Micro environment level 3. IBM strategy PESTEL analysis in Macro level Five forces analysis in Micro level Recommendation Conclusion SOWT analysis Complexity analysis 4. o IBM understood Value was shifting in the IT industry, driven by the rising tide of global integration, a new computing paradigm and new client needs. o Economies of developing nations were growing rapidly, driven by historic investments in fundamental business infrastructure. Enterprises were looking to tap skills and expertise available all over the world and to integrate their operations globally. o Change in computing architecture was rippling across the data center and the network, along with a proliferation of technology infused into all aspects of work and life. Companies were seeking to integrate advanced technology with their business processes and operations, not only to reduce costs, but to enable innovation and growth. o IBM remixed their businesses in order to move to the emerging higher- value spaces by focusing on software and IT industry. IBM Strategies 5. IBM Strategies Hardware And Services Software IBM sold the personal computing department To Lenovo 6. PESTEL Analysis for Macro environment factors Social Political Technological Environmental Economic Legislative 7. Iraq War in 2003, affected world economy, and IBM stock fell down. Technology affects directly...
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...Capitalizing on Complexity Insights from the Global Chief Executive Officer Study This study is based on face-to-face conversations with more than 1,500 chief executive officers worldwide. Samuel J. Palmisano Chairman, President and Chief Executive Officer IBM Corporation Letter from the Chairman 3 A note to fellow CEOs In the first chapter of this report on dealing with complexity, the CEO of an industrial products company calls the economic environment of 2009 “a wake-up call.” I agree. I’d only add that it was just the latest in a series of alerts that sounded during the first decade of this new century. In a very short time, we’ve become aware of global climate change; of the geopolitical issues surrounding energy and water supplies; of the vulnerabilities of supply chains for food, medicine and even talent; and of sobering threats to global security. The common denominator? The realities — and challenges — of global integration. We occupy a world that is connected on multiple dimensions, and at a deep level — a global system of systems. That means, among other things, that it is subject to systems-level failures, which require systems-level thinking about the effectiveness of its physical and digital infrastructures. It is this unprecedented level of interconnection and interdependency that underpins the most important findings contained in this report. Inside this revealing view into the agendas of global business and public sector leaders, three widely...
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...customers. 2.0 Purpose The purpose of the Access Control Policy is to ensure that sensitive financial information is kept secure and available to those who have the authorizations to access information. 3.0 Scope The scope of this policy is for all employees to protect the integrity of access to accounts. 4.0 User Policy This policy displays user’s access on a need to know roles to provide integrity and confidentiality to customers and employees of HHI. They will also be given Unique ID’s to access the computer systems. This policy pertains to new and existing users. Dept. Mgr: will oversee all employees and ensure that candidates are properly trained. Customer Mgr: will oversee operations from costumer services and cashiers. Customer Service officer: will be in charge of cashiers and customer service. Cashiers/Agents: trained to handle PCI DSS and company policies. Marketing: with limited remote access to authorized information. | Network | Application | Remote | Financial | Dept. Mgr | * | * | | * | Customer Mgr | * | * | | * | Customer Service officer | * | * | | * | Cashiers/Agents | * | * | | * | Marketing | * | * | * | | 1. Access control policy: Who has access to authorized system for business applications? Users will be authorized to use only the systems that pertain to their roles. 2. User access: Employees are granted information access through passwords...
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...This paper is about the complexity of managing organizations. As theoretical groundwork the book Organising and Managing Work by Tony Watson will be used. The book by Tony Watson covers issues about organizational, managerial and strategic behavior. In particular, the author argues for a critical common sense and the use of philosophical pragmatism (Watson, 2006). He also questions the way work is organized and managed. Finally, the process-relation perspective, a critical perspective of how to think about organizations and their relations and interactions with people, is taken by Watson (2006). This paper will start with a description of the two theories “System-control framing” and “Process-relational framing”. Afterwards the three concepts strategic exchange, negotiated order and double control will be defined and exemplified by different cases from the course. Finally, the paper will look into the complexity of managing knowledge at organizations supported by examples from Danone and McKinsey. In the field of leadership and management studies, there are two main perspectives “System-control framing” and “Process-relational framing”, which can help to analyze and make sense of complex organizations. The system-control perspective recognizes organizations as an entity that is “a system of managerially designed rules and roles existing on its own terms […] based on an organization design with a set of structural and cultural characteristics” (Watson, 2006, p.30). According...
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