...which mature later in the season should be better off than corn, although prices are expected to increase for both. Futures prices for corn have increased 60 percent, wheat is up to 41percent and soybeans have risen 24 percent (Lempert).Corn is the biggest U.S. crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, according to the National Agricultural Statistics Service (Lempert). It is crisis such as this which reminds the consumers how important and fragile American’s farming industry is. In fact about 60 percent of U.S. farmland and more than one half of American counties have been affected by the drought and are currently designated drought disaster areas (Lempert). Programs such as Federal Crop Insurance Program and Emergency Conservation Program will ensure a speedy recovery and stabilize prices. It is important to have a strong farm safety net in order to sustain the success of American agriculture. In fact the USDA has expanded the availability of farm credit, helping struggling farmers refinance loans. Unfortunately, there are a few smaller...
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...as part of Depression era banking legislation. Each Act has its unique impact on the United States banking system and the economy. Also known as the Glass- Steagall Act, the Banking Act of 1933 main purpose was established Federal Deposit insurance Corporation (FDIC) as a temporary agency, separated commercial and investment banking as different lines of commerce and founded the Federal Deposit Insurance Corporation for insuring bank deposits. The Act has a significant impact on the U.S. banking system. The establish of the FDIC required all federally chartered banks and all state banks that were part of the Federal Reserve system to join and regulate by it. Moreover, the Act also permitted the Fed to allocate the currency. The FDIC insured bank deposits separated commercial banks from investment banks. Commercial banks were insured and allowed to accept deposits, but it couldn't underwrite or own any stock. Restrictions were placed by the Act on the assets of the bank that it can only approved safe securities and loans. In contrast, investment banks could not accept deposits nor offer savings or checking accounts. However, it could offer brokerage services and underwriting. The FDIC also provided cheap, flat fee based insurance to bank; covers funds in deposit accounts,...
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...Assignment Time to submit: 1wk Q1. State the Bayes’ Theorem. Explain its importance. Insurance Company believes that people can be divided into two classes, accident prone and non-accident prone. Their statistics show that an accident prone person will have accident within a year with probability 0.4, whereas probability decreases to 0.2 for a non-accident prone person. If 30% of population is accident prone, what is the probability that a new policy holder will have an accident within one year of purchasing the policy? Suppose a new policy holder has an accident within one year, what is the probability that he or she is accident prone? Q2. Surveys by the Federal Deposit Insurance Corporation have shown that the life of a regular savings account maintained in one of its member banks is approximately normally distributed with average life of 24 months and standard deviation of 7.5 months. i) If a depositor opens an account at a bank that is a member of FDIC, what is the probability that there will still be money in the account after 28 months? ii) What is the probability that the account will have been closed before one year? Q3. From 2002 until 2007, the mean price/earnings ratio of approximately 1,800 stocks listed on Bombay Stock Exchange was 14.35, with a standard deviation of 9.73. In a sample of 30 randomly chosen BSE stocks, the mean P/E ratio in 2008 was 11.77. Does this sample present sufficient evidence to conclude (at the 0.05 level of significance)...
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...Krista Lee Professor Akins HIST 1302 26 February 2014 “New Deal Legislation” Franklin Delano Roosevelt became 32nd President of these United States. At this time American was a country that was facing one of the foulest economic issues in history. Ever since the Great Depression more than seventy-five billion was lost, the gross national production ensured nearly downgraded from one hundred and four billion to seventy-four billion. Over this time United States exports fell over sixty-two percent. Over twenty-five percent of the workforces in our nation were unemployed; in some places the unemployment was higher than others. Walking through the streets in agony many women and men dressed in such despair searched for work, any source of food, and any soup kitchens to wonder into to keep from starving. In other parts of America, such as the rural areas, many crops just sat there to rot while the farm income went downhill and most families were forced to leave their homes and find somewhere else to settle down. Due to all the economic issues, over 11,000 banks shut down and the United States banking system stopped functioning completely. The nation seemed to be collapsing and becoming into an economic gulf that had a possibility of resulting in a complete breakdown of array. Many feared that if the nation did not take action into trying to resolve the issue, a revolution would be right around the corner. Due to all the fear sweeping over the nation FDR took the responsibility...
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...years, what would be the total cost of those banking fees? | Total cost | $ | Explanation: $34 × 12 months × 4 years = $1,632 | 3. A payday loan company charges 3.2 percent interest for a four-week period. What would be the annual interest rate from that company? (Round your answer to 1 decimal place.) | Annual interest rate | % | 4. What would be the annual percentage yield for a savings account that earned $31 in interest on $500 over the past 365 days? (Round your answer to 1 decimal place.) | Annual percentage yield | % | 5. Janie has a joint account with her mother with a balance of $749,000. Based on $250,000 of Federal Deposit Insurance Corporation coverage, what amount of Janie’s savings would not be covered by deposit insurance? | Amount | $ | 6. A certificate of deposit often charges a penalty for withdrawing funds before the maturity date. If the penalty involves one months of interest, what would be the amount for early withdrawal on a $19,000, 5 percent CD? (Do not round intermediate calculations. Round your answer to 2 decimal places.) | Amount | $ | 8. A bank that provides overdraft protection charges 12 percent for each $100 (or portion of $100) borrowed when an overdraft occurs. | a. | What amount of interest would the customer pay for a $340 overdraft? (Assume the interest is for the full amount borrowed for a whole...
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...Week one notes Note: These notes are not a substitute to the textbook. They merely highlight important points and add some needed information to the assigned text. The title of this course is Management of Financial Institutions. This is a very broad and a far reaching topic. To make it possible, the course will concentrate on Bank management. Many of the concepts we will learn in course are transferable to other financial institutions. To begin the discussion, let us define banks. What is a bank? What do Banks do? A bank is a chartered financial institution that accepts savings deposits and makes commercial loans. This is the most basic definition of a bank. However, if you look at banks, you will see that they take many types of deposits and make many types of loans. In addition, if you are familiar with banks, you will notice that they act as intermediaries in many financial transactions. The banking is a vital function of the economy; without banks, the economy will not function properly. Why? The answer is that banks provide the link between savers and borrowers. In the US, people are net savers and businesses are net borrowers. Without banks and some other financial institutions, the borrowers, businesses, will not be able to raise finds by borrowing from people, the savers. This function takes many forms. We will look at some if these forms in this course and in other courses in the finance concentration in the MBA program. The Nature of Banking in the US ...
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...into the worst financial crisis since the Great Depression. It is a well known fact that the housing market and therefore the United States economy started slipping in late 2007. As the economy was faltering, it still managed to not slip into recession status until September 2008. It is lees than coincidental that America's fifth largest financial institution, Lehman Brothers, filed for bankruptcy on September 15, 2008, the very same time the economy plummeted. The instability of the market led to runs on banking institutions, which in turn led to more bank failures, which led to massive bailouts. These bailouts, while helpful at the time, lead to unprecedented national debt. Allowing banks, securities companies, holdings companies, insurance companies, and combinations of the aforementioned businesses to privatize profits and publicize losses due to foolish risk will eventually ruin capitalism as we know it. Too big to fail is defined by Henry Paulson as “An institution whose failure would seriously hurt the economy or financial stability.” (Macey...
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...Role and Functions of Law The law has many roles and functions. Law is a set of rules prescribed and enforced by a governing authority. “Law provides a mechanism to resolve disputes arising from those duties and rights and allows parties to enforce promises in a court of law” (Melvin, 2011, Chapter 1). The Role of Law in Business and Society The role and function law plays on business and society is far reaching. Laws create ethical standards and codes of conduct for business. Law governing commerce provides stability and reliability for merchants and consumers. Business law is the rules that govern business and commercial transactions. Law helps promote economic growth through competition. Law regulates social behavior, promotes social justice, and protects the environment. One primary function of law is peacekeeping. These laws provide guidelines for proper conduct in resolving disputes. Commerce Power Congress has the power to regulate commerce among the states. They exercise this broad power to pass laws regulating and affecting intrastate commerce in any way. This commerce power regulates persons and products related to the flow of interstate commerce. Congress has the authority to regulate channels of commerce such as railways, highways, and shipping vehicles. They also have the power to regulate any activity that has substantial economic effect on interstate commerce such as hotel and restaurant...
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...new Paige Martin TIAS 305 SEMINAR IN IAS Winter 2012 Obama’s Rehashing of FDR’s New Deal Franklin D. Roosevelt was one of the most memorable presidents in our history. His “New Deal” was a promise to American people - which the depression they were going through would come to an end. Much like Roosevelt, Barack Obama promised a new, new deal to his nation and proclaimed there would be “change.” This was the prescription that was much needed during the apparent economic downturn and it was modeled after the actions taken by Franklin D. Roosevelt during the great depression. One of the primary problems Franklin Roosevelt had to face was a high unemployment rate. Citizens were loosing their jobs because businesses were losing money. Roosevelt realized that the jobs were key, so he made a plan to try and create jobs for the citizens that needed them. One of the plans being put into action was the Works Progress Administration. This gave people government jobs for rebuilding America. Roosevelt also created the Rural Electrification Administration, which gave power to the majority of American farms that still had no electricity, as well as the Civilian Conservation Corps (CCC) and Soil Conservation Service helped to revive America’s forests and farmland and put more people to work on temporary projects. The current presidency was focused on repairing jobs as well, among other issues, such as health care and other social issues. There is also the withdrawal of funds from...
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...agencies due to their titles that included many different letters (i.e., WPA, FERA, TVA). Although the New Deal was initiated to return prosperity to the American economy, in the long run, the New Deal was probably the worst policy ever started. Though providing quick relief to some areas of depression, the New Deal was overall a very socialist, perhaps even communist plan. Controlling prices, giving out jobs, commanding water flow, were just some of the many practices engaged in by the government tat went against capitalistic American point of views. Some agencies did do good, however. The New Deal’s dealing with the banks was performed very well. It returned trust in leaving money in the banks with the Federal Deposit Insurance Corporation (FDIC). This act insured investor’s deposits in banks tat were members of the FDIC. Also, the Securities and Exchange Commission (SEC) which set guidelines for the stock market to prevent speculation like that that led to the Great Depression. Despite those agencies mentioned above, the other creations of the New Deal led to nothing but trouble in the long run. Agencies such as the Civilian...
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...the statutes, regulations, and enforcement personnel administering these laws, bankers were boxed into doing business as defined by state and federal governments. * Still In present day Banks are financial institutions that hold too much control over the economy and if they fail there are enormous consequences hence the need for government bailouts, in which government financial assistance is provided to banks or other financial institutions who appear to be on the brink of collapse. WHY THE NEED FOR REGULATORS * Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. * To create transparency between banking institutions and the individuals and corporations with whom they conduct business. * To reduce the level of risk to which bank creditors are exposed to. * to reduce the risk of disruption resulting from adverse trading conditions for banks causing multiple or major bank failures * to reduce the risk of banks being used for criminal purposes, e.g. laundering the proceeds of...
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...Every company has its strength, weaknesses, opportunities, and threats. Also, Bank of Montreal has those types, so according to the SWOT analysis of our bank I will talk about these. First of all, I will talk about strengths. As we know, BOM is in Canada and for a successful company in Canada needs self motivation in which Self-roused individuals have a tendency to have the stamina to endure start-up difficulties, and the take after through to achieve long haul objectives. Also, the basic start-up component, business and industry information is normally increased through experience. Experience gives your vision a strong establishment. Experience empowers you to survey circumstances and make great, grounded choices. With this we understand that business and industry knowledge is very important. Moreover, a successful company should have organizational and management capabilities because in the case of succeeding in little business, you will need to compose and deal with your time, the points of interest of your business and the individuals who work for you. Designation is a powerful association and administration apparatus. Vision is another important thing that a company should have. We know that because all organizations are based on the thoughts or dreams of people; On the other hand, to have a dream is insufficient: to transform your vision into a win. SWOT analysis * Strengths * Over 35,000 employees serves 7 million+ customers * BMO Capital Markets named as...
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...women started working as well to bring more money in the house , many families could not afford to have their children at school, to buy food or clothes for them .about 3 million children had to leave school either because they could not afford it or it closed down because of lack of money to stay open . many of those children who were not working were sent to work. As soon as President Roosevelt was elected he began forming policies to help the US go through this Great Depression, once formed they were known as the “New Deal “ which had three main goals, relief for those in need, economic recovery , and financial reform . In a period known as “100 days “ congress enacted 15 important legislations, Among those were the Federal Deposit Insurance (prevented people from losing their deposited money if the bank closed) the Civilian Conservation Corps ( gave people work in national forests, and public lands) the Agricultural Adjustment Administration ( which helped the farmers have limits to their production , this solved the production surplus in farms) the NRA ( generated jobs and raised wages, solving the unemployment and lack of money of some people ) and the WPA ( gave jobs to the unemployed) . Some of these programs that were implemented by President Roosevelt were starting to show how effective they were , they restored the GNP to almost the same level as it was before the Great Depression , But not all of the Programs were effective, some were taken out of action. Still President...
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...Recommendation Brief for an Internal Accountant Lisa Tucker ACC 544 April 8, 2013 Fred Johnston Recommendation Brief for an Internal Accountant A client has an out-of-control system that is in need of change to get it back into control. Internal controls are an important part of a company. The role of internal controls is to keep mistakes from occurring as much as possible. It also aids in preventing individuals from being dishonest. The system the client is using is out-of-control and it is highly recommended that the company hire an internal accountant. The internal can provide information to managers to limit any problems and audit the system internally. Implementing internal audits will help build credibility within the company and keep violations from occurring that would violate laws and regulations. An internal auditor would work with management and owners to analyze important areas of the company’s performance. These areas that would be analyzed would include assets, accuracy of financial information, and ensuring that government and industry standards and regulations are being followed. Another point that the internal auditor would confirm is that the policies and procedures are aligned with the company’s goals. An internal auditor would add security and be an asset to the company. The first step an internal auditor would initiate would develop a plan to evaluate the current control system that is in place. Any deficiencies...
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...Unethical Behavior Paper Throughout history, criminal activity has been a concern for American citizens. But with advancements in technology, the types of criminal activities from the past have changed from breaking-and-entering and robbery at gunpoint, to complete identity theft, fraud, and robbery without lifting a finger via electronic manipulation of banking systems. To help battle these new criminal activities caused by advancements in technology, Congress passed the “Electronic Funds Transfer Act of 1978”, which establish consumer rights and protections when transferring funds via electronic systems. According to "Federal Deposit Insurance Corporation" (n.d.), “the purpose of this title to provide a basic framework establishing the rights, liabilities, and responsibilities of participants in electronic fund and remittance transfer systems. The primary objective of this title, however, is the provision of individual consumer rights” (Electronic Funds Transfer Act). With the establishment of the Electronic Funds Transfer Act of 1978, a new standard was established to protect consumers from theft and illegal monetary transfers from accounts. The act established accountability and liabilities for both consumers and banking institutions to hold parties accountable for funds transfers and illegal accounting activities. Further measures were taken to restrict criminal activities with the establishment of the Computer Fraud and Abuse Act of 1986. The act establish guidance and...
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