...The 176-point Sensex crash on March 1, 2001 came as a major shock for the Government of India, the stock markets and the investors alike. More so, as the Union budget tabled a day earlier had been acclaimed for its growth initiatives and had prompted a 177-point increase in the Sensex. This sudden crash in the stock markets prompted the Securities Exchange Board of India (SEBI) to launch immediate investigations into the volatility of stock markets. SEBI also decided to inspect the books of several brokers who were suspected of triggering the crash. Meanwhile, the Reserve Bank of India (RBI) ordered some banks to furnish data related to their capital market exposure. This was after media reports appeared regarding a private sector bank3 having exceeded its prudential norms of capital exposure, thereby contributing to the stock market volatility. The panic run on the bourses continued and the Bombay Stock Exchange (BSE) President Anand Rathi's (Rathi) resignation added to the downfall. Rathi had to resign following allegations that he had used some privileged information, which contributed to the crash. The scam shook the investor's confidence in the overall functioning of the stock markets. By the end of March 2001, at least eight people were reported to have committed suicide and hundreds of investors were driven to the brink of bankruptcy. The scam opened up the debate over banks funding capital market operations and lending funds against collateral security. It also raised...
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...If Julia were to borrow some money from a friend before the first game to purchase more ingredients, she feels she can increase her profits. What amount, if any, would you recommend to Julia to borrow? If Julia were to borrow some money from a friend before the first game to purchase more ingredients, she feels she can increase her profits. What amount, if any, would you recommend to Julia to borrow? If Julia were to borrow some money from a friend before the first game to purchase more ingredients, she feels she can increase her profits. What amount, if any, would you recommend to Julia to borrow? If Julia were to borrow some money from a friend before the first game to purchase more ingredients, she feels she can increase her profits. What amount, if any, would you recommend to Julia to borrow? If Julia were to borrow some money from a friend before the first game to purchase more ingredients, she feels she can increase her profits. What amount, if any, would you recommend to Julia to borrow? If Julia were to borrow some money from a friend before the first game to purchase more ingredients, she feels she can increase her profits. What amount, if any, would you recommend to Julia to borrow? If Julia were to borrow some money from a friend before the first game to purchase more ingredients, she feels she can increase her profits. What amount, if any, would you recommend to Julia to borrow? some money from a friend before the first game to purchase more ingredients...
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...A Library System 1. Inception We have been asked to build a computer based library system that will handle the bookkeeping aspects of a library and provide user browsing facilities. The first thing to do is to go and find out about the target library or libraries to see what they do now and what they would like to be able to do. We get the following data: 2. Requirements Books and Journals. The library contains both books and journals. It may have several copies of the same book. Some of the books are for short term loans only. All other books may be borrowed by any library member for 3 weeks. Only members of staff may borrow journals. Members of the library can normally borrow up to 6 items at a time, but members of staff may borrow up to 12 items at a time. New books and journals arrive regularly and sometime disposed of; the catalogue needs to be updated. The current year’s journals are sent away to be bound at the end of each year. Borrowing. It is essential that the system keeps track of when books and journals are borrowed and returned. The new system should produce reminders when a book is overdue. It may be desirable to allow users to extend their loans if the book is not reserved. The system enforces the rules for borrowing given above. Browsing: The system should allow users to search for a book on a particular topic or by a particular author etc. The user should then be able to check if the book is on loan and if so to reserve the book. To...
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...David Whitehouse Eavesdrop Assignment ALPHA/Mozer 29 November 2012 Can I borrow your sports jacket? Guy looking for Sports Jacket: Hey so do you like have a fancy sports jacket I could borrow? Guy being asked: Uhhh I… Guy looking for Sports Jacket: See I already have pants, ties, and shirt, I just need a jacket Guy being asked: I don’t know man, sorry ask someone else Guy looking for Sports Jacket: ahhhh thanks any way Guy being asked: yup *knocks at another door *answers Guy looking for Sports Jacket: Hey bro do you by any chance got a sports jacket I could borrow? Guy being asked: Do I look like I own a suit dude? Guy looking for Sports Jacket: Thanks anyways *Then I got asked Guy looking for Sports Jacket: Hey do you have a sports jacket I could like borrow for tonight? Me: Uhhh yes… and No Guy looking for Sports Jacket: like what do you mean? Me: I mean YES I have one and NO you can’t borrow it… Guy looking for Sports Jacket: why dude? Me: well it’s fitted for me for one thing, and second it’s a military suit coat… I can’t let you wear it. Besides its got rank sewn on it Guy looking for Sports Jacket: ahhh good point, good point thanks anyways Me: no problem *shuts door Guy looking for Sports Jacket: Dude nobody has a damn jacket I can borrow… Someone: mhmrmh htahj kfj mrmrm? Guy looking for Sports Jacket: yeah I already asked all these guys down the hall So this wasn’t the most interesting conversation. I definitely didn’t expect to be a part...
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...1. Where and how would you borrow for a car or home mortgage? Complete a credit application from a bank, credit union or other lending institution. For "walking around" money? Open up a checking account at a bank and use the debit card to get cash from an ATM or apply for a credit card and use it to get a cash advance or borrow from my Mom. 2. Where and how would a farmer borrow to finance a new crop? Buy more land? Buy machinery? To finance all three a farmer can complete an application at a bank or can apply for a loan from the Farm Service Agency (FSA). FSA is an agency of the U.S. Department of Agriculture (USDA). 3. Where and how would a Large Company borrow to finance inventory? To build a new factory? To buy another company. Companies can borrow from banks or sell stock and issue bonds to raise money. 4. Where and how would a city borrow to build a new baseball stadium? New schools? Replace a sewer system? Cities can issue municipal bonds where to raise money for such new projects. 5. Where an how would the Federal Government borrow to finance the Federal Debt of over $17 trillion? The Federal government issues debt by selling treasury securites suchas bonds notes, savings bonds. Compose a document and attach the file in Microsoft Word (.doc, .docx) or Rich Text (.rtf) format. If I can't open your attachment you will receive a zero. If you have any questions about how to format your work contact ANGEL...
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...1,http://www.library.cornell.edu/ 2,http://www.library.cornell.edu/aboutus 3,http://www.library.cornell.edu/aboutus/coll/strength/select 4,http://www.library.cornell.edu/aboutus/collections 5,http://www.library.cornell.edu/aboutus/collections/strength 6,http://www.library.cornell.edu/aboutus/collections/strength/special 7,http://www.library.cornell.edu/aboutus/culpartners 8,http://www.library.cornell.edu/aboutus/inside 9,http://www.library.cornell.edu/aboutus/inside/depts 10,http://www.library.cornell.edu/aboutus/inside/depts/ils 11,http://www.library.cornell.edu/aboutus/inside/history 12,http://www.library.cornell.edu/aboutus/inside/libraries 13,http://www.library.cornell.edu/aboutus/inside/policies 14,http://www.library.cornell.edu/aboutus/inside/publications 15,http://www.library.cornell.edu/aboutus/inside/strategicplanning 16,http://www.library.cornell.edu/aboutus/nondisclosure 17,http://www.library.cornell.edu/aboutus/partners/Cornell%20Faculty%20and%20Programs 18,http://www.library.cornell.edu/aboutus/partners/Corporate%20Partnerships 19,http://www.library.cornell.edu/aboutus/partners/Global%20Engagement 20,http://www.library.cornell.edu/aboutus/partners/Other%20Universities%20and%20University%20Libraries 21,http://www.library.cornell.edu/aboutus/partners/othergrants 22,http://www.library.cornell.edu/aboutus/staff 23,http://www.library.cornell.edu/aboutus/staff/leg 24,http://www.library.cornell.edu/aboutus/staff/staffdir 25,http://www.library.cornell...
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...In some countries, like England, the central bank is part of the government (Colander, 2010, p.341). The Federal Reserve has a leadership group called the Federal Open Market Committee or FOMC. The major function of the FOMC is to select monetary policies. The FOMC is made up of a group of governors that are appointed by the president. The Discount Rate The discount rate is an interest rate. When commercial banks borrow money from the Federal Reserve it is just like when a normal citizen borrows money from a bank, the loan is paid bank with interest. The discount rate is “the rate of interest the Fed charges for loans it makes to banks” (Colander, 2010, p.348). The discount rate is controlled by the how commercial banks borrow. The Federal Reserve is a last result bank, this means they only want to loan money if the commercial banks have no other options. The Federal Reserve adjusts the discount rate to ensure banks only borrow when needed. If the rate is high commercial banks will be less likely to borrow. On the other side if rates are low more banks would borrow. The Federal Reserve estimates how much each commercial bank will have to loan out. If the Federal Reserve has a surplus...
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...steps are being taken to correct this. The current state of the economy and the demand for money are factors that influence the Federal Reserve to adjust the discount rate. Banks request additional money when their reserves get low. Changes in real estate become a factor when homeowners are unable to pay their mortgages and banks lose money. The Federal Reserve decreased interest rates for the real estate market, which made it less expensive for banks to borrow funds. “A change in the credit supply and demand influenced the Federal Reserve to increase the discount rate, discouraging banks from requesting money by making it more expensive for banks to borrow funds, (Colander, 2010)”. The Feds use the spread between the Discount Rate and the Federal Funds Rate to increase or decrease the supply of money. If the Discount Rate is lower than the Federal Funds Rate, banks will borrow from other bank which does not increase the supply of money. When the Federal Funds Rate is lower than the Discount Rate, banks will borrow from the Federal Funds which increases the supply of money. The discount rate affects the decisions of banks in setting their specific interest rates through “open-market operations.” This process is where the Fed’s buy and sell government securities and provides influence to the reserve level in the banking system that...
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...University of Phoenix Material Responsible Borrowing Worksheet Many students borrow federal student loans to pay for college. The goal of this assignment is to help you learn how to borrow responsibly, which may mean that you do not borrow at all or that you borrow only what you truly need. To borrow responsibly, you must understand your options and establish a financial plan for your entire program. With that plan in place, you can then focus on your classes and making connections with instructors and other students. There are three steps listed below for this assignment. Respond to the questions for each step in this worksheet only and submit your completed document to the Assignment Files tab. Step 1 Watch the “Responsible Borrowing (Financial Aid)” video on the orientation website located here: http://www.phoenix.edu/student-orientation.html. Respond to the following three questions in the spaces provided below: 0. What is financial aid? Funding assistants come from a outside source. 0. How do grants differ from loans? Grants you don't have to pay back, loans have to be paid back with interest. 0. What effect does class attendance have on funding availability? It may delay or cancel classes. Step 2 Navigate to the Personal Finance category of the GEN/127 PhoenixConnect® Community. Explore the resources provided and view some of the discussions shared by the community members. Respond to the following two questions in the spaces provided below: 0...
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...MicroEcon-2010 Economics Research Assignment: Short and Naked Short Selling & Their Impact on the Economy The term “Short Sell” refers to a broker who borrows shares of a publicly traded company from a third party, and hopes to sell back to the original owner at a lower price. An example could a broker who borrows and immediately sells 100 shares of “Ryan Stewart Real Estate Company” for $10 a share, equaling $1,000. The price per share falls to $7, so the broker buys the original 100 shares back at a lower price of $700, and returns the original amount of shares to the third party. Therefore the broker profited $300 while the stocks were losing value. The term “Naked Short Sell” refers to the selling of shares, before you borrow them. If there are many sellers of a particular share, then the price of the stock decreases. Brokers use naked shorting to drive the price of a stock down. An example is someone trying to sell someone’s house without their permission. The broker doesn't have the title to the home before they have a buyer. Therefore the difference in short selling and naked short selling is that one has the right to borrow a third parties stock and the other doesn't. When any decently educated person wants to invest money into stocks they should look at the current earnings of a company and their estimated future earnings. But what if a large amount of brokers are collaborating to drive the stock price...
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...Introduction Why do we need to borrow money?There a numerous reasons for the borrowing of money but common ones are; home loans, purchasing of cars, insurance, purchasing of business companies etc. People borrow money in general because they either can’t afford something or they have no money in cash, so they borrow from the bank, the disadvantage however is that you have to pay it back, and what people don't realize is that the bank adds interest to the overall payment if you pay it over a period of time which is not in the month requested by the bank. Money is a peculiar thing that life seems to be centered around. You need money to buy things, both necessities and desirables. You work to earn money and need money to get to work. You need money to travel and visit new places. You even need money to receive prescriptions for health. Before you sign up for a credit card or bank loan, there are some questions you need to answer before you borrow money. You should ask yourself if you need to spend the money, if you have other ways of financing the purchase and if you can afford to pay back the money you’re planning to borrow. Borrowing money becomes a problem if you borrow too much – that is, more than you can afford. It’s a problem if you borrow to where you can’t do other things or if you need to borrow to pay your regular monthly expenses. Just like your own money, you have to stay in control of the money you borrow from others. Borrowing money doesn’t have to be a bad thing...
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...microprocessor chips for use in appliances and other applications. IST has no debt and 100 million shares outstanding. The correct price for these shares is either $14.50 or $12.50 per share. Investors view both possibilities as equally likely, so the shares currently trade for $13.50. IST must raise $500 million to build a new production facility. Because the firm would suffer a large loss of both customers and engineering talent in the event of financial distress, managers believe that if IST borrows the $500 million, the present value of financial distress costs will exceed any tax benefits by $20 million. At the same time, because investors believe that managers know the correct share price, IST faces a lemons problem if it attempts to raise the $500 million by issuing equity. Question a. Suppose that if IST issues equity, the share price will remain $13.50. To maximize the long term share price of the firm once its true value is known, would managers choose to have equity or borrow the $500 million if i. they know the correct value of the shares is $12.50? SOLUTION If the firm knows that the correct value of the shares is $12.50, the correct thing to do to raise the $500 million would be by issuing equity. The share price would be overpriced at $13.50 so by issuing equity it lets investors know that its equity is overpriced. When this happens, investors are willing to pay les for the equity. Question ii. the know the correct value of the shares is $14.50...
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...funds in their reserves. As such, they will have more funds to loan, this will increase money supply. When supply of money increases, there will be a decrease in interest rates. When interest rate falls, investors and consumers will be more willing and able to borrow funds to invest and consume since it is now cheaper to borrow funds. When consumption and investments increase, it will increase aggregate demand and thus bring about economic growth. Economic growth is important to maintain or improve standard of living. In addition, economic growth helps to close recessionary gaps and thus reduces unemployment rates and increase level of income. On the other hand, when reserve requirements are increased, supply of money will fall. This will result in an increase in interest rates which will contribute to a decline in economic growth. Discount Rates 2. To slow down an economy, the Federal Reserve should increase discount rate. This makes it more expensive to borrow funds. As such, banks will have fewer funds available. When this happens, supply of money will decrease and this will result in an increase in interest rates. With the increase in interest rates, consumers and investors will find it more expensive to borrow funds for investments and consumption. Hence, this will result in a fall in both activities and this will cause a decrease in aggregate demand to slow down economic growth. It is important to slow down economic growth so that aggregate supply and aggregate demand...
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...requires a fixed-rate loan. Design a swap that will net a bank, acting as intermediary, 0.1% per annum and that will appear equally attractive to both companies. A has an apparent comparative advantage in fixed-rate markets but wants to borrow floating. B has an apparent comparative advantage in floating-rate markets but wants to borrow fixed. This provides the basis for the swap. There is a 1.4% per annum differential between the fixed rates offered to the two companies and a 0.5% per annum differential between the floating rates offered to the two companies. The total gain to all parties from the swap is therefore [pic]% per annum. Because the bank gets 0.1% per annum of this gain, the swap should make each of A and B 0.4% per annum better off. This means that it should lead to A borrowing at LIBOR [pic]% and to B borrowing at 6.0%. The appropriate arrangement is therefore as shown in Figure S7.1. [pic] | | |Figure S7.1 Swap for Problem 7.1 | Problem 7.2. Company X wishes to borrow U.S. dollars at a fixed rate of interest. Company Y wishes to borrow...
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...REFERENCE : Levy H.and Thierry P.(2005) INVESTIMENT Edinburgh Gate, England | | | | | | | | |ANGENCY FOR THE DEVELOPMENT OF EDUCATIONAL MANAGEMENT AND ADMINISTRATION (ADEM) MWANZA CAMPUS | | | | | |SUBJECT : ECONOMICS OF EDUCATION AND RESOURCE MOBILIZATION | | ...
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