Chilean Economic and Investment Framework: Key Concepts and Regulations
Central Bank of Chile (BCCh)
The Central Bank of Chile is an autonomous body with its own technical heritage, overseeing monetary exchange and credit. Its aim is to ensure currency stability and the normal functioning of internal and external payments. It regulates the amount of money circulating in the economy to curb inflation.
Reserve Ratio
The reserve ratio is the percentage of total deposits that a bank must hold in reserve, rather than lending out, to ensure its solvency. This ratio influences
Read MoreAccounting and Financial Statement Analysis: Key Concepts
Accounting: A Comprehensive Overview
Accounting is a system that allows a company to collect, analyze, classify, calculate, check, and record economic facts to support decision-making.
Audit: Definition and Purpose
An audit is a technique that allows for the auditing of accounts in financial statements. This is done through substantive tests to analyze the safety and performance of the internal control system.
Current and Non-Current Liabilities
This section covers current assets, short-term expenses,
Read MoreFiscal and Monetary Policies: Impact on Unemployment and Economy
Fiscal and Monetary Policies: Impact on Unemployment and Economic Depression
To address unemployment and economic depression, governments use both fiscal and monetary policies to stimulate economic activity. Here’s how each policy helps:
Fiscal Policy
- Government Spending: During an economic downturn, the government can increase its spending on infrastructure, healthcare, and education. This boost in demand creates jobs, reduces unemployment, and stimulates economic activity.
- Tax Cuts: By lowering
Understanding Shifts in Supply and Demand Curves
**Shifts in the Demand Curve**
The quantity demanded depends on several variables. The purpose of the demand curve is to determine how the quantity demanded depends on price only. Over time, these other variables change, impacting the quantity demanded and shifting the demand curve further to the right or left. These other factors are:
**A. Personal Income**
When there is an increase in people’s disposable income, they will be willing to increase demand for goods and services. This happens with a *
Read MoreUnderstanding Price Elasticity of Demand and Market Structures
Define Price Elasticity of Demand. Discuss the Various Degrees of Price Elasticity of Demand? 10 Marks
Price elasticity of demand (PED) measures how responsive the quantity demanded of a good or service is to a change in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
There Are Several Degrees of Price Elasticity of Demand:
1. Elastic Demand: Demand is considered elastic when the absolute value of the price elasticity of demand is
Read MoreComprehensive Market Study for Business Success
Market Study
The market consists of the collection and analysis of background on the demand and supply, for purposes of determining the feasibility of the project in order to ascertain the true potential of this in the various markets in which it participates, and the effects on revenues and operating expenditures.
Their study is important because this is a fundamental cause of business failures.
The study can meet two objectives:
• Feasibility of Market: This refers to the study of history that should