...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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...Assignment One: Complexities of the U.S. Financial System Christine Capell Professor.Umair Warsi FIN 100 - Principles of Finance May 5, 2013 The US financial markets impact the economy, businesses, and individuals in a variety of ways, one of which is providing a way for businesses to raise capital by issuing securities. The capital markets enable new companies to raise funds to grow. Typically, banks would not lend in these situations because of the lack of sufficient collateral and high risk. Without the public securities markets or private venture capitalists to provide the funding for these higher risk investments, the economy would be much smaller. The markets and the economy are closely linked and are especially reactionary to the each other, i.e. if the economic indicators show recession, the markets typically turn down, particularly the equity markets. Currency markets, FOREX or foreign-exchange markets, and the mortgage markets will move in response to the health of the economy and the movement of interest rates. Should those economic indicators prove to be positive, then the markets turn upwards or even “fly”. When the markets experience an intense downtown, it can lead to a severe recession with the prices of financial assets declining sharply, which can cause individuals, businesses, and financial institutions to become less able to handle their debt payments or it can even lead to financial system failure with widespread bank closures and mortgage foreclosures...
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...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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...The U.S. financial system has many complexities and it is impacted by several environmental factors including federal regulations and the economy. The U.S. financial markets impact the economy, businesses, and individual by the movement of funds among financiers, businesses and governments. It involves investments in the area of sales or marketing of securities, the management of investment risk through portfolio diversification and the analysis of securities. Melicher, R. W., & Norton, E. A. (2011).Pg. 6 The U.S. Federal Reserve is the central bank of the United States and is responsible for regulating the banking system, setting monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices. ("What is the," 2013) The role of the U.S. Federal Reserve is important for the U.S. payment system. It provides banking service for the twelve Federal Reserve Banks by providing banking service to depository institutions and to the federal government. The depository institutions maintain accounts including collecting checks and provide various payment services, distributing and receiving currency and coin, and electronically transferring funds. Melicher, R. W., & Norton, E. A. (2011). The Federal Reserve Chairman is a position with high ethical standards and morals; a high standard are a must. A successful chair must have the confidence and trust of the president and Congress and bank officers, foreign officials,...
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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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...Impact of Complexity and Uncertainty on Project Planning Process Project across most industries face huge uncertainty as regard to complex, ambiguous and dynamic environment (external environment) which can have impact on the project planning process. Similarly, projects are becoming larger and more ambiguous which make the execution and realisation of project complexity to be on the increase therefore increase our internal complexity. (Azim, 2010) established that project are increasingly being characterized as complex across most industries and sectors. (Vidal et al. 2011, p. 719) define project complexity as the property of a project which make it difficult to understand, foresee and keep under control, even when given reasonably complete information about the project system. Besner and Hobbs project (2012) established that size, complexity and together with risk (known unknown) and uncertainty (unknown unknown) are path of project characteristics to be considered in selection of project management toolsets to be adopted in their management approach. Each of the project classification approaches attempt to address interaction between complexity and uncertainty and the impact this interaction has on project planning process. The key principles for addressing complexity in the planning process. The complexity of project has always been there which make the need to execute and bring realisation of project complexity on the increase. Therefor the key principles of...
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...more scenes showed the complexity of a character or individual in a visual or oral text. The Film ‘The Road To Perdition’, directed by Sam Mendes. Is a story where a father and his son travel across the wide and vast country named America. They are on the run from an unrelenting assassin. The film is set way back in the 1930’s America when the country was in the grip of immense gloominess. Embargo was still the law of the land and gangsters like Al Capone were at the height of their power. The audience is forced to plunge into this Underworld of crime as we follow the Sullivan’s on their journey to Perdition. During one of the scenes, Mike senior Hug’s Mike Jnr at the end of the scene with a mid shot shows a connection. The music brings warmth, and the fire in the background shows warmth along with the soft lighting. This shows complexity of the character Mike Sullivan Snr as he is a gangster and part of a mafia. He shows his gangster connections when he is at the warehouse with Connor Rooney, Rooney suddenly shoots Finn and Sullivan guns down Finn's two friends who are also there before they have time to retaliate. Mendes uses a high angle shot from Michael Snr’s point of view when looking down on Mike Jnr at the gate outside the warehouse. This shot helps to Reinforces Sullivan’s dominance and authority over his son as the shot looks down on mike Jnr and makes him feel small and powerless compared to his father. These two shots show complexity of the character Mike Snr...
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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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...Complexities Ever wondered why we create complexities for ourselves? Is it our nature like Goulish tried to tell us? All these questions could pop up into anyone’s head once he/ she really put their heads into it. Upon taking just a glance at our lives we could manage to understand that we make things more complex than they have to. Confucius once said, “Life is simple, but we insist on making it complicated.” This quote ostensibly covers the whole idea of this essay. We as humans have had rough time through our evolution; we have gone through much as a race that it has affected us to our core. Goulish explains it in his essay that it is our nature to complicate things. “Irreducible complexity seems to characterize the late twentieth century itself” (Goulish 557). Goulish seems to have a pretty good idea of what complexities are and how this trait of human beings has been us for as long as we can remember. Goulish does not hesitate to explain to his readers that making things complex is our nature. Goulish hits this spot right from the beginning of his essay, “Each time we experience a work of performance, we start over almost from nothing” (Goulish 557). Why does he say that? Goulish tells us that when we experience an act of performance we tend to look at it from the fresh eye instead of using our previous encounters in similar situations. He tells his readers that, come what may, we will look at things with the thought in our head that we have never encountered it before...
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...ORGANIZATIONALPROCESS DESIGN (Extended AbstracO John Idicula GINTIC Institute of Manufacturing Technology NanyangTechnological University Nanyang Avenue Singapore 2263 idicula@ntu.ac.sg 1. Introduction Organizations need to rapidly adapt to changes in dynamic markets. The design of an organization can hinder or even prevent it from responding quickly to changes in its environment. The processes along with other resources in the organization drive its workand responses to changes in its environment. Processes of an agile organization must be effective, efficient, reusable and well managed. Furthermore, they must ease quick responses to changesin the environmentof the organization. The study of designing organizational processes can stimulate us to design better organizations. It can borrow ideas, tools and techniques fromareas such as artificial intelligence, computer science, coordination science, logic and operations research. Mostof the activities performedin organizations deal with the processing of information to meet various goals. The design of an organization must support the primary activities that help the organization to achieve its goals. Information technology is providing new ways of organizing and performing activities. Transactions that required several hours of human attention can nowbe achieved in a few seconds. There are various kinds of communicationfacilities that have increased efficiency at reduced coordination costs. Information technology based tools are...
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...COMPUTATIONAL COMPLEXITY OPERATIONS RESEARCH Pooja Punjabi Manash Hazarika INDIAN INSTITUTE OF MANAGEMENT, KOZHIKODE COMPUTATIONAL COMPLEXITY Computational Complexity is a measure of the computational time taken by a particular algorithm. In a scenario where there are multiple algorithms available for a particular problem, the effectiveness of any particular algorithm is gauged on the basis of the time constraint. This is done by breaking the algorithm into its basic steps and then taking a count of each of them. Hence greater is the number of steps, greater is the complexity. Now for example, if we take two 5 bit binary numbers and XOR them, the number of steps taken is 5 and if the same process is repeated for a 100 bit binary number, the number of steps goes up to 100. The algorithm employed in either case is the same; the complexity is given by the size of the numbers. When we say size of a number n, it is defined as the number of binary bits which are required to denote ‘n’ in base 2. For example, 5 in base 10 when expressed in binary takes the form 101, thereby giving n = 3. Similarly 20 is given by 101002 which makes n = 5. Now if we XOR any two numbers each of size n=b, the number of steps taken will be ‘b’. Hence we can say that XORing those numbers has computational complexity of order ‘b’ which is denoted by O(b). This can be applied to even simpler applications like addition wherein if we are to add two n digit numbers, the minimum number of steps taken (ignoring...
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...Part IV Emerging and Integrating Perspectives January-2007 MAC/ADSM Page-213 1403_985928_17_cha14 January-2007 MAC/ADSM Page-214 1403_985928_17_cha14 CHAPTER 14 Complexity Perspective Jean Boulton and Peter Allen Basic principles The notion that the world is complex and uncertain and potentially fast-changing is much more readily acceptable as a statement of the obvious than it might have been 30 years ago when complexity science was born. This emerging worldview sits in contradistinction to the view of the world as predictable, linear, measurable and controllable, indeed mechanical; it is the so-called mechanical worldview which underpins many traditional approaches to strategy development and general management theory (see Mintzberg, 2002 for an overview). The complexity worldview presents a new, integrated picture of the behaviour of organisations, marketplaces, economies and political infrastructures; these are indeed complex systems as we will explain below. Some of these behaviours are recognised in other theories and other empirical work. Complexity theory is unique in deriving these concepts through the lens of a coherent, self-consistent scientific perspective whilst nevertheless applying it to everyday, practical problems. These key principles can be summarised here: There is more than one possible future This is a very profound point. We are willing to accept the future may be too complicated to know, but the notion...
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...hj Amazon US | UK | There is a growing popular literature on chaos and complexity (eg Stewart 1989; Kauffman 1993) authored by scientists of high reputation writing about research fields in which they are themselves active. There is also a burgeoning literature (eg Wheatley 1992; Stacey 1992, 1996; McMaster 1995, Merry 1995) which draws on this work to address management concerns and practices, but whose authors are experienced in management and management education rather than in the substantive scientific fields whose findings they report and interpret. I shall refer to this arena as ‘management complexity’. There is some evidence of managerial take-up of ‘complexity’ as a framework for informing organisational practice. This is still at an early stage, and take-up may or may not lead to take-off. The purpose of this paper is to contribute to a discussion of the validity and significance of these ideas for the management of organisations. The type of questions which I shall at least be raising are: * what failings in current management theory or practice are claimed to be corrected? * how novel are the management prescriptions which are derived from complexity theory? how plausible? * does complexity theory provide scientific authority for these prescriptions? I will first provide the briefest of overviews of the subject matter of chaos and complexity theory, followed by an outline of the ways in which they have been applied to the field of management. I will...
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