...Saving and Investment Macroeconomics Assignment 1 Matthew Killeen 8173969 Professor: Octavian Strimbu Assignment - Saving and Interest Question: Many commentators, including high officials of the bank of Canada, have blamed the spending habits of the Canadian public for high interest rates. Are these commentators right? “It’s not your salary that makes you rich, it’s your spending habits.” - Charles A. Jaffe. Throughout the past 25 years, Canadians household savings rate have dropped severely resulting in the economy’s interest rates to rise in order to maintain stability. Many economists believe the increase in interest rates is due to the rise in consumer spending habits. In our current economy there is an evident relation between the diminishing house hold savings and the increase in interest rates in the Canadian public. When it comes to consumer spending and saving there is a clear trade-off, choosing to save now and consume more later, results in giving up current consumption. Many Canadians lose a good amount of their income due to enforced tax laws, causing them to spend instead of save. I agree with the the statement that the spending habits of Canadian Public is to be blamed because of high interest rates. The relationship between Canadians spending habits and high interest rates can be expressed through the supply and demand of loanable funds and the highly recognized Gross Domestic Product Equation. Since Canadian spending habits...
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...http://prezi.com/yzqi-phg6rlh/thesis-savings/ "Comparative Analysis on the Savings Behavior of Public and Private Tertiary Students in Batangas City" People’s savings decision is rationally based on their economic situation and preferences. Saving money is a hard task to accomplish though it always gives an impression that when things came up, there goes your savings. We cannot deny the fact that saving money is cornerstone of the successful money management plan. Without savings, you cannot expect to survive if something goes wrong. That is why we have to give emphasis on the development of having a good saving habit. If there is always an attitude of savings individuals would not worry about their future expenses even if uncertain things come especially with resource to finance. There are many ways on how people can save and develop a savings habit. . Moreover, due to the culture of the Filipinos, the Batangueños or the residents of Batangas City wanted to make a change for a better future. It is due to the reason that having fun in spending their money for unreasonable reasons or occasions like fiestas, birthdays and the likes would decrease their savings. They need to have the knowledge on how to save money for their own benefits in case of emergencies or immediate needs of funds. People in Batangas City wanted to learn the proper way of saving their money and adopting a savings habit. Thus, the study is conducted to determine the savings behavior of tertiary students...
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...Article Citation: Mayhew, L., & Smith, D. (2014). Personal Care Savings Bonds: A New Way of Saving Towards Social Care in Later Life. Geneva Papers on Risk & Insurance, 39(4), 668-692. doi:http://dx.doi.org/10.1057/gpp.2014.30 Main Issue of Article: The article “Personal Care Savings Bonds: A New Way of Saving Towards Social Care in Later Life” is an interesting take on a new way to pay for your elderly care after retirement. “Social care” is what most people would associate with long-term care. Personal Care Savings Bonds (PCSBs) go about it in a whole different way. The general idea is to blend a traditional savings bond with the lottery. Combining the practical long-term, safe, savings of a bond with the instant gratification of winning a large cash prize. A very large expenditure of people at the end-stages of life is the cost of their care. These costs often destroy personal savings and drain the assets a person wants to leave to their families all while still costing the government (tax payers) billions of dollars per year. PCSBs would hope to encourage more saving by individuals by introducing a lottery aspect. As with any lottery, a person would buy as many “tickets” as they would like. If their number is chosen, they would win a large cash prize. How PCBSs differ is that the bulk of the money from the ticket would go towards a guaranteed bond. As people buy more and more tickets, the amount in their PCSB account would grow. The administrators...
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...THE EFFECT OF SAVINGS RATE IN CANADA The impact of savings rate in an economic has become a very conflicting issue in research and among economist all over the world. This may be due to the importance of savings generally to the economic growth and development of any nation. However, the structure of every economy cannot be generalised by a particular economics’ variation because various countries have different social security and pension schemes, and different tax systems, all of which have an effect on disposable income. In addition, the age of a country’s population, the availability and ease of credit, the overall wealth, and cultural and social factors within a country all affect savings rates within a particular country. Therefore, this paper seeks to find the effect of savings in the Canadian economy. Household saving is defined as the difference between a household’s disposable incomes mainly wages received, revenue of the self-employed and net property income and its consumption (expenditures on goods and services). The household savings rate is calculated by dividing household savings by household disposable income. A negative savings rate indicates that a household spends more than it receives as regular income and finances some of the expenditure through credit (increasing debt), through gains arising from the sale of assets (financial or non-financial), or by running down cash and deposits. Since the early-to-mid-1990s, savings rates have been stable in some...
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...Explanation of Personal Savings Rate The Personal Savings Rate in the United States is a very important figure to understand. Between the economic crisis and 2007 and the expansionary period of 2009-2012, one can notice clear fluctuations in the figure from year to year (1). Regarding the time period of 2007-2012, there are several noticeable highs and lows, including in 2008 with over 8% whereas middle of 2007 is seeing around 2% (2). What has caused these changes in savings and why such drastic changes? Economists have struggled to produce concrete answers to describe these changes, but one major reason is a shift in the mindset of our country’s lifestyle. In order to really understand this shift, we must look at the trends in savings overtime. In the 1970s, the savings rate was 9.6%, but in contrast the savings rate of the last quarter of 2012 was 3.6% (2). We have evolved to become an economy that spends almost all of our disposable income, rather than working and saving for the future. One possible explanation for this increase in consumer behavior is with the extremely aggressive marketing and advertising campaigns led by credit card companies. Today almost anyone can open a line of credit, and this has led to some serious issues. Although we see in the graph the savings rate improved during the 2008-2009 period, the overall savings trend has decreased dramatically and will most likely remain low until citizens are forced to save via higher interest rates (3). After...
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...Saving is the key to future growth for Kenya How do countries and individuals become rich? Human history provides a clue. One of our most defining moments as a species took place some 10,000 years ago, when a group of humans started to switch from hunting and gathering food to growing it. This allowed them to settle down (in an area called Mesopotamia). If they produced more than they consumed, they could save for the future. With proper storage facilities, they no longer needed to eat and drink everything they had; instead they could put some aside literally for "rainy days", and, even more importantly, invest some of the agricultural output to produce even more. Now zoom forward several thousand years: saving has become central to individual and collective prosperity. As a rule of thumb those who save more become wealthier because foregoing consumption today allows one to invest in the future (e.g. you can save to buy a bicycle, a car, or a house). Businesses can invest in new equipment and governments in new roads, schools and health facilities. All of these investments are associated with better economic futures. People and companies tend to save and invest if they can trust the institutions that manage their money and the economy at large. In the past, it was not always safe to keep deposits at banks in many African countries. It is different today. In fact some may feel more secure entrusting their savings to African banks than those in Europe (as depositors in...
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...providing an entire meal at this time of year with vegetables grown less than 100 feet from your back door, then how much more local it is to use vegetables where the seed never came from more than 100 feet away! There is nearly a mystique about sustainability and propagating life, whether human, animal or plant. With plants, the work is almost unquestioningly left to ‘experts’, even though the processes are natural and have gone on since time immemorial. “Experts” may have their place, but when it comes to the incredible variety of vegetables available, backyard seed-savers also deserve due recognition. Saving the seed from any heirloom vegetable is easy. If you have a favorite variety, or even just want to try seed saving for the fun of it, take a few minutes to learn about the process and give it a go. Many of us learn about the basic principles of seed saving in grade school. Kids are usually taught how to collect seed by drying and picking apart enormous sunflowers, or by threshing pods filled with colorful beans. These are all wonderful, hands-on projects for children, which teach practical, sustainable and real-world lessons....
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...Relationship between the Savings Rate and Economic Growth of China By: Muhammad Saddam Hossain Institute of Business Administration, Jahangirnagar University Submitted to: Dr. Shuddhasattwa Rafiq Associate Professor, Institute of Business Administration, Jahangirnagar University Submitted by: Muhammad Saddam Hossain Batch: 21st Class ID: 1565 Date of Submission: June 11, 2013 Institute of Business Administration, Jahangirnagar University 1 Table of Contents: Contents 1. Introduction 2. Savings Rate 3. China’s High Savings Rates 4. How to calculate Savings Rate a. Private saving b. Public saving c. National Saving d. Savings Rate 5. China’s Comparative Savings Rate 6. Relationship between the saving rate and economic growth 7. Savings Rate Vs Economic Growth of China 8. Conclusion Page 3 3 3 4 4 4 4 4 5 6 7 9 Illustrations: Contents Figure 1: National Saving Rate by Region Figure 2: Relation Between savings rate and Growth Figure 3: Saving and Investment Rate of China Table 1: National Reserves by Countries Page 5 6 7 8 2 Introduction: A savings rate is refers to the percentage of Gross Domestic Product (GDP) savings by households in a country. It indicates the financial state and growth of the country, as household saving is the main source of government borrowing to fund public services. It varies among countries and is influenced by various factors such as retirement age, borrowing constraints, income distribution over lifetime...
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...Wherefores of Daylight Saving Time The question I always ask myself on the second Sunday morning in March when I look at the clock upon waking up and see that is already an hour later than my usual waking hour, is “Why?” I feel I am already behind and I scramble to catch up all day long and then, when the clock tells me that it is time to go to bed, I really don’t feel like it, but know if I don’t, the next morning will bring a struggle to wake up and get going. And then along comes the first Sunday in November. It’s easy to get up – the sun is where it should be. But around eight or nine o’clock in the evening I feel myself getting drowsy, but have to wage a painful battle to stay awake because I know if I go to bed too early, the next day I will be waking up hours before I should. So, once again, I ask why? Why can’t they just leave the time alone! I say it’s time to stop the insanity of Daylight Saving Time once and for all. Just as many people enjoy early morning light as do extended evening light and if there is no real evidence of energy savings during DST, it’s time to do away with it. The story goes that Benjamin Franklin (remember “early to bed and early to rise”) was the first American to suggest Daylight Saving Time (and, by the way, it is Saving, not Savings as most of us say) because he felt that not using that extra early morning daylight in the summer months was just wasteful. But he never was able to implement it. The first year Daylight Saving Time was actually...
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...midnight for Daylight Savings Time? If something wasteful was costing you money would you want to continue doing it? What if it was bad for your Health? Each year millions of dollars are thrown out the window due to Daylight Savings Time. For the last 50 years we have had to move our clocks forward one hour during the spring, and push them back one hour during the fall. This process is called Daylight Savings Time, a concept that I along with many others feel is no longer practical and should be abolished. Daylight Savings Time was first conceived by Benjamin Franklin in 1784 as a way to conserve on candles (History of Daylight Savings Time-DST). When electricity came around many saw it as a way to conserve energy. Their...
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...Saving Private Ryan is a 1998 American epic war drama film set during the Invasion of Normandy in World War II. Directed by Steven Spielberg and written by Robert Rodat, the film is notable for its graphic and realistic portrayal of war, and for the intensity of its opening 27 minutes, which depict the Omaha Beach assault of June 6, 1944. It follows United States Army Rangers Captain John H. Miller (Tom Hanks) and a squad (Tom Sizemore, Edward Burns, Barry Pepper, Vin Diesel, Giovanni Ribisi, Adam Goldberg, and Jeremy Davies) as they search for a paratrooper, Private First Class James Francis Ryan (Matt Damon), who is the last-surviving brother of four servicemen. Saving Private Ryan received universal critical acclaim, winning several awards for film, cast, and crew as well as earning significant returns at the box office. The film grossed US$481.8 million worldwide, making it the second highest-grossing film of the year. The Academy of Motion Picture Arts and Sciences nominated the film for eleven Academy Awards; Spielberg's direction won him a second Academy Award for Best Director, with four more awards going to the film. Saving Private Ryan was released on home video in May 1999, earning $44 million from sales. In 2014, Saving Private Ryan was selected for preservation in the National Film Registry as per being deemed "culturally, historically, or aesthetically significant. Saving Private Ryan follows the story of several World War II soldiers who are on a quest to find...
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...Saving Private Ryan, directed by Steven Spielberg in 1998, is renowned as the film that best captures the reality of modern day combat. It follows a squadron of soldiers led by Captain John H. Miller on a mission to during WWII rescue a private who is the last remaining sibling of four, in order to return him home to his mother and out of harm's way. The film puts the audience straight into the action right from the start; it makes them feel as if they are a part of the war. To do this, Spielberg uses film techniques that capture the environment, but don’t leave viewers feeling like they are just spectators; his close-up, right-in-the-thick-of-things style causes us to feel horror of every bullet that flies by, and every comrade that we have...
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...What was the Savings and Loans crisis? What caused it? Could the crisis have been prevented? How? The savings and loan crisis was the greatest banking collapse since the great depression. Emerging in the 1970’s and escalating during the 1980’s, by 1989 over half of the United States savings and loan associations along with the Federal Savings and Loan Insurance Corporation fund that was created to insure their deposits had collapsed. The overwhelming cost of the savings and loan crisis still astounds many taxpayers, depositors, and policymakers today. This savings and loan experience produced three valuable lessons: excessive regulation was the initial cause of the industry's problems; federal deposit insurance was ultimately responsible for the high costs of this crisis; government sponsored efforts to protect the industry only invited abuses and increased the ultimate cost of restructuring (England). The foremost cause of the saving and loan crisis was the high inflation levels that occurred during the 1970’s. Savings and loan institutions depended on residential mortgages for income. During the 1970’s these institutions began losing money on fixed rate loans because the interest rates set were created in previous years when interest rates were well under the rate of inflation. Congress subsequently decided to allow the savings and loans to diversify into riskier and more profitable commercial real estate and relaxed lending requirements to prevent the savings and loans...
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...Saving Private Ryan, directed by Steven Spielberg and released in 1998, is a film that follows the stories of several World War two soldiers who are on a mission to find one man who is fighting somewhere else in Europe. Private James Francis Ryan, who is played by Matt Damon and Harrison Young as his elderly version has three brothers who have all been killed at different locations around the world. This situation is brought to the attention of General George Marshall and orders an immediate search. The film opens up with the prologue of elderly Private Ryan and his family visiting an American cemetery in Normandy, France. The time then quickly shifts to June of 1944 and American troops landing on Omaha Beach also known as D-Day. Once the orders of General George Marshall reach captain John Miller, who is played by Tom Hanks assembles a squad of men and starts their journey to find Private Ryan. Along their way on their journey comes obstacles they start to set out to town. There is various battles which leads to one of Miller soldiers getting injured there is no medical aid around so later on the man dies which begins...
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...Case Analysis Case: BONIFACIO SAVINGS AND LOANS ASSOCIATION The Bonifacio Savings and Loan Association (BSLA) in its consultative meeting for the year decided to embark on a one year deposit campaign program. Dubbed as BSLA’s “Employee Motivation Program (EMP)”, the deposit campaign is aimed to increase deposit levels which was BSLA’s traditional source of funds. Mr. Danilo Lagman, VP for operations, was chosen as overall program coordinator. After a month of preparation, Mr. Lagman and his staff is ready to launch the EMP. Under the guidelines, bank officers and employees were given account credits for every account turn in. Points were based on the operating balance and their average balances thereafter. The participants were divided into teams, with one branch/division representing one team. To monitor progress of the EMP, solicited clients surrendered introductory cards given to them by the EMP participants. Passbook/deposits certificates were then marked with the EMP logo. As an added incentive, aside from individual bonuses specific credit levels reached, special bonuses were given to teams if group targets were met. Personal and team award credits earned were summarized and distributed at the end of each month within the deposit campaign period. The more award credits earned, the more expensive the merchandise that can be redeemed. The list of prizes included calculators, watches, living room, and microwave ovens, and others. Mr. Panganiban head of the Accounting...
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