Understanding Public Sector Economics and Fiscal Policy
The public sector includes the economic activities of a nation that fall within the governmental sphere.
Economic Policy
Economic policy: government intervention in the economic affairs of a country in order to achieve certain objectives.
Goals of Economic Policy
A goal of economic policy is any general aspiration that a society seeks to achieve.
Economic Policy Objectives
- Economic Growth: Increase of production without exhausting resources. It is measured by the average annual growth rate of GDP or GDP
U.S. Federal Tax Concepts: Q&A on Authority, Planning, Compensation, Retirement, and Property
Chapter 2: Tax Authority & Legislation
- Which of the following statements is incorrect? (Answer: C)
- a. Tax periodicals are secondary authorities.
- b. A particular court of appeals need not follow the decisions of another court of appeals.
- c. Revenue procedures have higher authority than temporary regulations. (Incorrect: Temporary regulations generally have higher authority.)
- d. A disadvantage of electing to use the small claims division of the Tax Court is that the court decision is final and cannot
Key Financial Accounting Concepts Explained
Net Income
The residual amount of earnings after all expenses have been deducted from sales. In short, gross income is an intermediate earnings figure before all expenses are included, and net income is the final amount of profit or loss after all expenses are included.
Net Sales
Net sales represent total revenue, less the cost of sales returns, allowances, and discounts. This is the primary sales figure reviewed by analysts when examining a business’s income statement.
Statement of Cash Flows
A financial
Read MoreUS & European Banking Regulation History: 1900-Present
USA Banking Regulation: 1900-1920
Federal Reserve Act (1913)
- Composed of 12 Federal Reserve Banks.
- Established the Fed as the lender of last resort.
McFadden Act (1927)
Introduced geographical restrictions to the banking business.
Western Europe Banking: 1900-1920
Post-First World War Period
A flourishing period followed the peace treaty signature, but a recession occurred in 1920-1921.
Key Characteristics:
- Close links between banks and industrial corporations.
- Prevalence of the universal banking model.
Differences
Read MoreUAE Government Reforms and Economic Development
Chapter 8: UAE Reforms and Economy
Government Reforms Introduction
In line with the UAE’s rapid socio-economic developments, major steps have been taken, both at the federal and local levels, to reform the structure of government. This aims to make it more responsive to the needs of the country’s population and ensure it is better equipped to cope with the challenges of development.
This process has been directed at a federal level by President H.H. Sheikh Khalifa bin Zayed Al Nahyan, and devised
Read MoreCore Concepts of Money, Supply, and Monetary Policy
Understanding Money and Its Functions
- Store of value: Money allows transferring purchasing power into the future. However, it’s an imperfect store due to inflation eroding its value.
- Unit of account: Money provides the common terms for quoting prices and recording debts.
- Medium of exchange: Money is used to facilitate transactions for goods and services.
Money Classifications (Aggregates)
Money supply is often categorized into different aggregates:
- M0/MB (Monetary Base): Currency in circulation plus bank