Central Bank Influence: Monetary Policy and Its Effects
How Central Banks Influence the Money Supply
When a central bank (CB) grants a loan to a bank, the banking system has more reserves, and these additional reserves allow it to create more money. The CB can alter the money supply by changing the discount rate. An increase in the discount rate discourages banks from borrowing reserves from the CB. Therefore, a rise in the discount rate reduces the number of reserves in the banking system, which, in turn, reduces the money supply. However, a reduction
Read MoreUnderstanding the World Trade Organization (WTO) and International Trade
Understanding the World Trade Organization (WTO) and International Trade
The World Trade Organization (WTO) is located in Geneva, Switzerland. It is composed of approximately 150 member governments, representing 95% of international trade. The WTO’s supreme decision-making body is called the General Council. The principle of decision-making is crucial: to adopt only agreements to which all member countries agree. There is no voting; decisions are taken by consensus. This measure, although democratic,
Read MorePeak Oil Impact: Market Analysis & Alternatives
Practice 2
The Hubbert peak theory suggests global oil production will peak and then decline as rapidly as it grew. The debate centers on whether peak oil will occur, and when, with some predicting it in 2010 and others in 2100. This will have serious consequences for developing countries that rely heavily on cheap and plentiful oil.
Economists argue that shortages will motivate the search for new discoveries, increasing reserves beyond Hubbert’s predictions. Natural gas, another fossil
Supply Chain and Inventory Management: Key Concepts
At each of its home games, the Washington Check-Kiters football team sells programs that give statistics of the teams involved in the current game’s contest: 50 percent
Using the data from Exhibit 12-3 and the regression model, what is the sales forecast if Gamma is expected to be 21? (Round your forecast to the nearest number of whole units.): 39
Which of the following factors should be considered when one designs a forecasting process? All of these
Using the data from Exhibit 12-4, the company has
Read MorePersonal Finance: Planning, Investing, and Financial Health
Chapter 1
Personal Finance: the process of planning your spending, financing, and investing activities, while taking into account uncontrollable events such as death or disability, in order to optimize your financial situation over time.
Opportunity cost: what you give up as a result of a decision.
Steps to develop a financial plan:
- Establish your financial goals
- Consider your financial position
- Identify and evaluate alternative plans
- Select and implement the best plan
- Evaluate the financial plan
- Review
Pearson
Read MoreOrganizational Structures: Centralization, Decentralization, and More
Centralization: Advantages and Disadvantages
Advantages: Clear authority and responsibility. Direct reporting lines. Top-down decision-making. No overlapping functions.
Disadvantages: Limited creative input from lower levels. Bureaucratic processes. Potential for increased staffing.
Decentralization: Pros and Cons
Pros: Faster decision-making at the problem level. Develops leadership skills. Promotes individual criteria.
Cons: Potential for inconsistent actions. Complicated communication. Difficult long-