Financial Markets Assignment free essay sample

Explain how interest rates decline following major Fed purchases of mortgage-backed securities. The FED implements quantitative easing by buying financial assets of longer maturity, e. g. , mortgage-backed securities, from commercial banks and other private institutions in order to inject a pre-determined quantity of money into the economy. This is a means of stimulating the economy and lowering longer-term interest rates further out on the yield curve; quantitative easing increases the excess reserves of the banks, and raises the prices of the financial assets bought, which lowers their yield. Graphically, this can be explained with the aid of Figure below. The supply of money is shifted from point 1 to the right (MS1 to MS2) and, all else equal, the new equilibrium point (with aggregate money demand curve) is at point 2, where the interest rate is lower. i i1 i2 AD1 MS1 MS2 Quantity of Money 2. What could be the implications of lower interest rates for households and businesses? By implanting the policy of purchasing mortgage-backed securities, the FED has set its sight on increasing consumption and investment, which will ultimately increase employment. As described in question one Bernanke’s policy decreased interest rates to new record lows, encouraging borrowing for both businesses and households. The ability to borrow money at more attractive rates stimulates investment in durable consumer goods, such as automobiles, and in operational necessities such as buildings and capital equipment for businesses. Indeed, after the implementation of the policy mortgage applications increased significantly. Because of low interest rates households and businesses as investors could shift their preference away from bonds and into stocks. According to frbsf. org, the increase in stock trading volume has the effect of raising the value of existing stock portfolios, which in turn stimulates consumer and spending across the country due to the psychological effects of rapid capital appreciation. Lower interest rates can have negative effects on the value of the local currency compared to other currencies. As foreign investors dump their local-denominated investments in favor of more profitable currencies, exchange rates can shift to the detriment of the local currency. The weakening of the local currency serves to increase the attractiveness of local goods to foreign purchasers, which has the effect of boosting exports and international sales. All of the factors mentioned above have the combined effect of increasing productive output, or GDP, and increasing employment across a wide range of industries. As individuals, businesses and foreign investors are encouraged to spend more due to increased access to capital, higher portfolio valuations and weaker currency values, businesses in nearly every sector experience an increase in sales, often requiring them to grow their operations and employ additional labor. However, there are some negative implications from this policy. Without a strong commitment to control inflation over the long run, the risk of higher inflation is one potential implication of experiencing real interest rates below the economy’s natural interest rate. Low interest rates provide a powerful incentive to spend rather than save. In the short term, this may not matter much, but over a longer period, low interest rates penalize savers and those who rely heavily on interest income. If short-term interest rates are low relatively to long-term rates, households and firms may overinvest in long-term assets, such as Treasury securities. If interest rates rise unexpectedly, the value of those assets will fall (bond prices and yields move in opposite directions), exposing investors to substantial losses. Finally, low short-term interest rates reduce the profitability of money market funds, which are key providers of short-term credit for many (large) firms, e. g. the commercial paper market. 3. Explain the Fed’s policy dilemma and try to rationalize why unemployment in the US is stubbornly high while inflation is low. Based on the theory of the Philip’s curve diagram we notice that there is an inverse relationship between inflation and unemployment. Stated simply the lower the unemployment in an economy the higher the rate of inflation. Philip’s Curve Inflation Unemployment The explanation of the inverse relationship between inflation and unemployment is based on two assumptions. The first has to do with the fact that as unemployment rises there is no room for workers and labor unions to demand an increase so a wage inflation that would increase the prices of the final products cannot occur. Secondly high unemployment is a reflection of the decline in economic output and indicates an economy’s slowdown. Therefore competition among firms in recession will lead the prices at lower levels. But this is not the case currently in the US since we observe high unemployment and low inflation. The FED is concerned about the unemployment rate and in an effort to stimulate the economy and improve the labor market conditions it started implementing the quantitative easing policy. So the FED purchased MBS, helped banks to rebuilt their balance sheets, contributed into maintaining price stability, preserved interest rates near zero for more than three years, and prevented the economy from slipping into greater recession. Despite all these efforts the situation in the labor market did not improve. Apparently the fact that unemployment is still very high depicts the limitations of the monetary policy. The low business confidence, policy uncertainty, and the government’s reluctance to act are beyond the FED’s capacity. What is more the infinite use of the quantitative easing may produce undesirable effects in the long run such as stagflation. The only optimal solution under these circumstances is the co ordination of the FED’s monetary policy with the government’s fiscal policy plan that could boost the society’s confidence. . Do you think that another round of quantitative easing (QE) by the Fed would help stimulate the US economy? Please explain. The FED declared that the use of QE will be aggressively continued until the economy is improved. The cash injections into the economy helped interest rates to remain at low levels. Consequently everyone wins from this decision in the short run; homeowners can borrow at historical low levels of inter est rate, corporations can also take advantage of this act and invest, consumption increased and also the banks increased their profits and the stocks record a growth. So as long as the QE is active in the short run everyone is a winner. But in the long run things become vague. First of all historical evidence shows that despite the fact that interest rates may be at levels near zero it remains uncertain whether this will be the incentive to boost the actual economy. Secondly the fact that consumers will have more money to spend but fewer goods to buy might lead to a hyper inflation. Furthermore by repeating the use of QE is very possible to lead to a liquidity trap, unless the economy finds ways to stimulate production. Last but not least the FED’s decision to inject cash into the economy by purchasing MBS is questionable; Mortgage backed securities entail the risk of defaulting once again as they did in the real estate crisis and that would cost the Americans a lot more money repeating the history that started back in the September of 2001. To sum up the use of QE is indeed very effective but only in the short run. Short periods of economic recession can be avoided by stimulating the economy temporarily through cash injections but to maintain growth on the real economy we need to improve labor market conditions, productivity, innovation and bolster the economy’s confidence. So a combination of fiscal and monetary policy is the only way to prevent an economy from collapsing, and also is this is the only way to avoid a possible systemic risk that will negatively affect all the institutions and individuals. . How is a loose Fed monetary policy in the US affecting fundamentals (such as inflation, asset and commodity prices) in other countries? What does that imply about global monetary policy? Since the dollar is the vehicle currency in the global economy almost every country is tied to its value and everyone is affected by the monetary decisions of the FED. By the QE, the supply of dollars is increased and consequently the dollar depreciates against foreign currencies. This means that America’s exports will increase and on the contrary the imports will decrease. So countries trading with the US fear about the capital inflows and the possible inflation on commodities. On the other hand the FED support that there can be no further inflation since the global economy is in recession. Moreover countries experiencing huge capital inflows resulting in inflation can implement fiscal policy, such as imposing taxes, in order to contain the effects of foreign capital inflows which push up local stock prices and the currency itself. Every country should focus on its own monetary policy adjusting it to the problems that may experience. For example the US chose to inject more money in the economy. The results of such a decision are low interest rates, more exports but always with the risk of inflation. On the other hand a country experiencing high inflation might limit the money supply, increasing the interest rates with the risk of experiencing a decline in exports.

Mercantilism Essay Example

Mercantilism Paper In attempt to gain wealth and power, Great Britain started to enforce the theory of mercantilism.Their motive was to increase their prosperity using their colonies.They expected the colonies to provide them with goods and to only buy British goods in return. As a result of this attempt, the colonies were actually the ones who were benefiting from mercantilism the most.The colonies benefited economically, socially, and politically.Due to the Navigation Laws, the English were restricted only to trade with England, which lead the colonists to smuggling for profits.Americans enjoyed the rights of pure Englishmen.The colonists gained opportunities to form self-governments. Due to the Navigation Laws, the English were restricted only to trade with England, which lead the colonists to smuggling for profits.Great Britain did not want the colonies competing with the English industry.Before the Navigation Laws, the colonies were under salutary neglect and England was not aware of what the col onies were doing to earn their money.The colonists felt that only being able to trade with England was holding them back.Many found ways to get around the laws by smuggling their exports to foreign countries and earned a great fortune. In order to control foreign markets sea power was necessary.Britain expected the colonies to provide ships, ships stores, sailors, and trade to guarantee their naval supremacy.Colonists earned direct benefits from supporting Britains Navy.England paid them bounties and price supports for their help.American planters also profited by trade with England through their monopoly over the tobacco market in Britain. American colonists enjoyed the pure rights if Englishmen.England gave unity to its policies and was working to help the welfare of t

Prostitution in Nevada Essays

Prostitution in Nevada Essays Prostitution in Nevada Essay Prostitution in Nevada Essay To persuade my audience why prostitution should be legal. Central Thesis Statement: Prostitution should be legalized the Pros outweigh the Cons. The harm it Is creating now can be stopped and changed. Method of Organization: Topical Introduction Prostitution should be legal. It can help reduce crime, improve public health, and increase tax revenue. Many people make a living by selling themselves. Some of us may think it is wrong, but to each their own. We all do what we want with our bodies and do not Like It when someone tells us to change what we do with It. Hence, we should stop dictating whether someone can sell leis or her body or not. Prostitution is the oldest profession and will certainly not go away anytime soon. It is not an exchange of sexual favor, but a financial exchange. It takes two consenting adults for the exchange to occur. It is time we stop making decisions for adults. I will be addressing how legalizing prostitution will reduce crime, improve public health, and Increase tax revenue. L. Reduce Crime A. Prostitutes do not seek for help when they are raped or are involved in any kind of violence because what they do is illegal. 1 . Legalizing prostitution will help prostitutes seek for help when harassed rather than feel fear. 3. Melissa Dimmer Coordinator of the Global Network of Sex Work Projects found that under New York Criminal Procedure Law, sex workers who have been victims of sex offenses, including assault and rape, face greater obstacles than other victims. 2. Associate Professor of Finance at Northeastern State University Kirby Cunning statedlet is estimated that if prostitution were legalized in the United States, the rape rate would decrease by roughly 25% for a decrease of approximately 25,000 rapes per year. Linda M, Roll Reaching Director of the American Bar Associations (ABA) Child Custody Pro Bono Project, stated in an Par. 1991,A study conducted in Queensland Show[De] a 149% increase In the rate of rape when legal brothels were closed In 1 959, while other offenses against the person by males increased only 49%. B. Ronald Wittier Professor of Sociology at George Washington university found t hat women working in the Netherlands In a controlled and legal environment do not go through danger as much as being in an uncontrolled illegal system. 1. Workers and managers have instituted elaborate procedures to respond to violent customers quickly and effectively. Giving the prostitutes some sort of safeness. 2. Also the risks in Nevada are very low. We rarely hear about workers being raped because of security. If a case does escalate it is quickly addressed. C. Barbara G. Berets Senior Associate Dean for Graduate Studies and Academic Affairs, at the university of Nevada, Lass Vegas states there is a strong indication documented analysis and ethnographic data presented that legal brothels generally offers safer working environment than their Illegal counterparts. When customers enter a legitimate business, violence Is almost eradicated, because it is a controlled environment. And minimizing actual violence. 3. Nevada brothels offer specific mechanisms to protect workers via the ways transactions are organized, the ways technology is ordered, the visibility of customers, the bureaucratic relationships among customers, managers, and workers, and the cooperation with police based on the mere fact of their legality. All of these mechanisms work to eliminate systematic violence and to discourage an atmosphere of danger and risk Transition: We have talked about reducing crime , now lets consider improving public health. II. Improve Public Health A. Prostitutes work outside the law. This has implications for their health that are hard to quantify. Health problems associated with prostitution, such as sexually transmitted diseases (Studs) and violence, are commonly assumed to be risks of the trade. 1. Beth Gaze Associate Professor of Law at the University of Monish carried out an Australian Australian in 1998, the prevalence of sexually transmitted bacterial infections was 80 times greater in 63 illegal street prostitutes than in 753 of their gal brothel counterparts. . In off-street establishments, fear of arrest on felony charges can cause management to discourage the use of condoms, which could be used as evidence that the establishment is in the business of prostitution. 3. Legally sanctioned encouragement of prostitutes to use condoms or access screening services, both major determinants of the prevalence of sexually transmitted diseases, is impossible because of their illegal status. Occupational health and safety law is applied to prostitutes in lawful brothels but not to their counterparts on the street. B. The evidence of the legalized brothel system in Nevada highlights that sex work environments that are legitimated have the effect of empowering sex workers to control their working conditions and interactions with clients. 1. Sex workers will follow mandatory procedures prior to having sex. This includes routine checkups and protection. Transition: We have talked about improving public health, now lets consider increasing tax revenue. Ill. Increase Tax Revenue A. Government would collect taxes on the industry. 1. Since the government would collect taxes, they also have the power to control it. 2. Legal businesses pay taxes, while illegal prostitution businesses pay no taxes. 3. Let the government share in the revenue, and stay out of the affairs of consenting adults. Conclusion l. Legalizing prostitution will not only be helping a victimless crime will not be a crime anymore, but also improving the lifes of many individuals who risk their lifes trying to make a living. Prostitution is more difficult. I know that there are women who are drawn to the sex industry and entered it voluntarily and get quite upset if others say it is a demeaning occupation. I also know that many women are not there by hooch. It offends my sensibilities to know that a 16-year-old girl could physically or psychologically be forced into the sex industry II. Women will not have a great risk of abuse. Individuals health will not be in danger and tax revenue will increase. Ill. Legalizing prostitution will not harm anyone. However, it will improve some areas. Some people are Just afraid of change and do not like progression. It is time w e move on legalize this victimless crime. If you look at the majority of serial killers, they are doing it outdoors and with the use of their cars.

Bio 202 Endocrine System Labpaq Exp Essays

Bio 202 Endocrine System Labpaq Exp Essays Bio 202 Endocrine System Labpaq Exp Essay Bio 202 Endocrine System Labpaq Exp Essay Section: Bio 202 labpaq rep 01 lab report: ENDOCRINE SYSTEM You must get all parts of the question correct to get credit for the question Step 1 (Can be observed on the following slides, either from your lab kit or from the Labpaq web site ( labpaq. com/ex-1-endocrine-system)). List the following:  ·Location in the body of the following structures  ·Slide #/location observed  ·One hormone secreted by each Please pay special attention to properties like shapes, sizes, colors, textures, relationships among structures, plus any interesting or identifiable features. You may want to make drawings of slides so that you would be able to identify this tissue in the future. Pituitary gland: it’s a pea sized gland located at the base of the brain (center of skull) near the optic nerves. It secretes various hormones one example is the GH – growth hormone. Observed at labpaq web site (pituitary Anterior lobe) Basophils, Acidophils and Chromophobes where observed. Thyroid gland: is a butterfly shaped gland, located in front of the trachea , secreting hormones T3 triiodothyronine and T4 thyroxine. Observed at the labpaq website and noted in the slide the thyroid follicles, colloid, and simple cuboidal epithelium and C cells. Parathyroid gland: is located behind the thyroid. It secretes parathyroid hormones PTH that regulates calcium and phosphate. Observed at labpaq website Chief cells and oxyphil cells were noted. Thymus gland: it lies under the sternum and above the trachea in the mediastinum it secretes also thymosin. Labpaq website. Noted the medulla, cortex, and Hassall’s corpuscles from infant thymus. Adrenal gland: Located on the top of the kidneys, it secretes epinephrine slides viewed at labpaq website it was noted connective in the capsule and next to it the adrenal cortex, adrenal medulla and cells and blood vessels. Step 2: Abbreviations-  ·Give the full name of these hormone abbreviations  ·Name the gland that secretes it. 1. ADH Antidiuretic hormone / vasopressin if too little of that hormone it causes diabetis insipidus secreted by the Pituitary. 2. FSH Follicle stimulating hormone, produce sperm for males and ovulation in females secreted by the pituitary gland. . LH Luteinizing Hormone , regulates testosterone and estrogen levels , secreted by the pituitary. 4. NE norepinephrine function as both hormone and neurotransmitter secreted by the adrenal medulla in the adrenal gland . 5. TSH Thyroid stimulanting hormone, stimulates thyroid gland , secreted by the pituitary gland. Step 3: Answer the following questions (1 point each): Figure 1. 1. The pancreatic structures highlighted in blue in Figure 1 secrete all of the following EXCEPT: C a. Insulin b. Glycogen c. Pancreatic Polypeptide X d. Glucagon 2. Name the 3 cell types numbered in Figure 2 and name the major function of each. Figure 2. 3-In your own words, describe the clinical differences between hypothyroidism and hyperthyroidism. Hypothyroidism basically means that is not enough thyroid hormones in the body while hyperthyroidism means that is too much of thyroid hormones in the body. In both cases it causes an unbalance of hormones for proper homeostasis. 4. List three physiological effects of calcitonin. Stimulates bone deposition in kids while suppress bone resorption by inhibiting osteoclasts. Controls release of calcium and phosphorus in the bloodstream Also opposes effects of the PTH on Ca2 levels 5. What role does parathyroid hormone play if there are low calcium levels? It will raise the Calcium level in the blood by stimulating bone resorption while inhibiting bone deposition. 6. Is the thymus more efficient in younger or older populations? What is the implication of this? The thymus gland plays a hole in 3 systems: endocrine, lymphatic and immune, it grows on us until when we are about 6 years old and then it starts shrinking. So yes, it is more efficient in younger people than in old people, the implication of this is that as we age and it shrinks it also becomes more fatty and less granular losing most of its power, it also contains lymphocytes and thymosin hormones, when the thymus shrink and lose its ability to aid the immune system we get sick, lymphocytes are diminished, so our response against antigens is very weak. 7. How is the adrenal medulla tied into the â€Å"fight or flight† response? Because it also plays a role as a ganglion in the sympathetic nervous system, which is the fight to flight system, the SNS releases NE / adrenaline that kicks in when we are in dangerous or very stressful situations 8. In your own words, what are functional differences between glucocorticoids and mineralocorticoids? They are both corticosteroids , but the mineralocorticoids is responsible for regulanting the electrolytes balance in the body while the glucocorticoids regulates the metabolism of glucose and carbs , lipids etc†¦ 9. What are the differences between the endocrine and exocrine functions of the pancreas? Exo â€Å"outside† end â€Å"within† basically means that the exocrine will secrete digestive enzymes into the intestines while the endocrine part will release insulin into the bloodstream 10. What are the physiological effects of testosterone, estrogen, and progesterone? Sex steroids, the adrenal glands produce testosterone, progesterone and estrogens in both men and woman. Testosterone it has anabolic and androgenic effects, it increases the growth of muscle and bones, and the maturation of sex organs ( especially in men) maintains the sexual desire in both , men and woman; however women have a little less than men. Progesterone aids in woman ovulation and it lessen when in menopause, it also promotes well being sensation such as aiding in sleep has a calming effect and aids in fat metabolism, stimulate new bone formation, restore O2 level in cells, restore libido for both men and woman. Estrogen: there are 3 different hormones in this class: estrone, estradiol and estriol. They affect the mood on both men and woman by increasing serotonin. It also increases body fat, creates progesterone receptors, increase blood clothing, reduce the libido, and reduce O2 levels in cell etc†¦

Interpretation and Application of Statutory Legislation Essay

Interpretation and Application of Statutory Legislation - Essay Example The statutory legislation that relates to said areas may be raised by the member as private bill shall also require the assent of Royal Queen. The example of this sort of legislation is Interpretation Act 1978 (Slapper & Kelly 89). The courts while deciding the cases of statutory legislation binds to take into consideration the prevalent laws, applicable rules and a set of precedence in similar cases for the purpose of clarity and to identify the loopholes in existing laws. The ambiguous laws need to be addressed by the parliamentarian to streamline in light of the court decision. Many rules are known as collective rules in terms of its statutory interpretation. The competent court of law applies different rules in different scenarios besides the decisions of other courts to decide the matter (Slapper & Kelly 134). The three rules as golden rule, literal rule and the mischief rule are applied by the court to assess the objective of legislation that has passed by the constitutionalist . The golden rule may be used where the literal rule leads to an absurd status. In specific situation courts do not go for interpretation of legislation (Slapper & Kelly 133). Statutes imposing taxation or penalty are subject to detailed assessment to address identified ambiguity for resolution. The statutory interpretation is generally based on three rules as mentioned herein above. Strict application of literal rule in the eyes of judges has no significance. The strict literal interpretation culminates absurdness. The golden rule outside the purview of the act, hence the court can apply mischief rule. However, English courts are more literal in their approach than in most other territorial jurisdictions (Wolfe 69). Mischief rule was favored by the Law Commission in view of the purposive approach to interpret the law. In the larger interest of justice, judges should find out the intention of parliament concerning the purpose of specific legislation. In England, mentioned rules, come to surface 200 years ago. With the assumption of role as law makers by the parliamentarians, the common law and the royal prerogative become in fructuous. Until then, the cour ts regarded statutes as an instrument to plug the holes of the common law. The law makers expect that courts should treat the exact wordings of Acts as the voice of the legislature. Here, we may cite Sussex peerage 1844 case to express the rule. The role of parliament is to enact statutory legislation to address the particular issue, which should not be in conflict of the constitution in force (Morrison 129). The intention of the law makers

If you were given one million dollars to spend how would you spend it Essay

If you were given one million dollars to spend how would you spend it you cannot use it for yourself,familymembers or friends - Essay Example What if I have to spend it nonetheless? What would I do and where would I spend it? The question is abrupt and took me by surprise. It was a while before my polished grey cells started to work again. I thought, pondered, mused and laughed. I had numerous thoughts and each thought was powered by another, more distinct idea. Clearly imaginative, my thinking was now starting to bog my rationality. It was time I took a final decision and the decision had to be a wise one. The moment I gave it a thought, my mind stopped churning ideas. A simple decision to spend it on others had simplified the entire procedure and allowed me to slip out of my utopia. The next thought was the execution of my plan. In order to simplify the scenario, the million dollars were to be spent for charitable use. With that in mind, I narrowed my thoughts to select the best charitable option. Even as I pondered, I had a recollection which was nothing but a reflection of my past. It involved a close friend who had spent a majority of his life running in and out of rehabilitation centers. His drug abuse had spilled water on a promising career and his life had been reduced to a human waste. Taking cue from the above example, I set out to locate a suitable property dealer and bought an acre of wasteland. The hundred thousand dollar bill was substantial to transfer the property to my name. The next step involved hiring an expert builder who transformed the wasteland into a fully functional rehab center. I then enrolled the necessary staff and took the required permission to kick start the rehab center. A month later, the rehab had treated over a hundred patients for free, provided employment to fifteen nurses and five doctors besides a dozen maintenance employees. As I had no right over the money, the rehab was transferred under the care of a local non governmental organization. Well, if you thought that I spend the entire amount on the purchase of land, the

Sichuan dumplings with soy sauce caramel Essay Example for Free

Sichuan dumplings with soy sauce caramel Essay Rate this recipe: 2,302207,4,1,0 2,302207,4,2,0 2,302207,4,3,0 2,302207,4,4,0 2,302207,4,5,0 17 votes Recipe by: Rishi Desai Contestant Makes: 20 Ingredients 2 cups (200g) moist coconut flakes or shredded coconut 60g palm sugar, coarsely grated  ½ teaspoon ground cinnamon  ½ teaspoon ground cardamom  ½ teaspoon ground nutmeg 1 teaspoon Sichuan peppercorns 125ml ( ½ cup) milk 20 gow gee wrappers Vegetable oil, for frying 110g ( ½ cup) brown sugar 250ml (1 cup) thickened cream 2 tablespoons dark soy sauce Add to Shopping List Method 1. To make the filling, combine coconut, palm sugar, cinnamon, cardamom, nutmeg, peppercorns and milk in a saucepan set over low heat. Cook for about 5 minutes or until the palm sugar has melted, stirring often. Transfer mixture to a blender and blend to a coarse paste. 2. Place 1 tablespoon of filling into the middle of a wrapper, and lightly brush edges with water. Using your fingers, gently bring the edges of the wrapper together, crimping at intervals to seal, forming dumplings with a flat base. Repeat with remaining filling and wrappers. 3. In batches if necessary, place dumplings in a large steamer basket, sitting over a saucepan or wok barely filled with boiling water. Steam for 10 minutes or until wrappers are tender. Remove and set aside on a tray lined with baking paper. 4. Heat oil in a large frying pan set over medium heat. Cook the base of the dumplings for about 1-2 minutes or until golden brown. 5. Meanwhile, to make the soy caramel, place brown sugar, cream and soy sauce in a saucepan over low heat. Bring to a simmer, and cook for about 10 minutes or until a thick caramel. Transfer caramel to a jug. 6. To serve, place wontons on a plate and serve with soy sauce caramel. Print RecipeRecipe CardCreate PDF.