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Why depository institutions are today the most regulated firms?
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How did the Federal Reserve Affect banks?
The Federal Reserve System (also known as the Federal Reserve, and informally as The Fed) is the central banking system of the United States. It was created in 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907.[2][3][4] Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved.[3][5] Events such as the Great Depression were major factors leading to changes in the system.[6] Its duties today, according to official Federal Reserve documentation, are to conduct the nation's monetary policy, supervise and regulate banking institutions, maintain the stability of the financial system and provide financial services to depository institutions, the U.S. government, and foreign official institutions.[7]
What is a consumer and producer service?
A consumer is someone who purchases goods and services to satisfy their needs and wants.Service: Good pre-sales and after-sales service makes you feel like you are a valued customer and consequently, you will keep buying that product or going back to the particular store. Poor service can have the opposite effect.Producer services are services sold to a producer.In the older economic order most large firms produced all their services (such as: advertising, maintenance, sanitation, business consulting, auditing, and engineering) "in house". Most large firms in the 1970s began to "unbundled" these services in an effort to become more economically efficient. Large firms today buy (contract out) these services from smaller highly specialize firms. These highly specialized firms sell what economist call producer services.somthing nessesarry for a persons servival
Explain the effect of financial crisis taken place in the west using circular flows of income?
The balance of the circular flow of income is disrupted by the crisis. In short, withdrawals have increased and injections have decreased. 1) Because of the huge national and international debt within our economy, the government raises taxation and decreases government expenditure. The households have lower income and the firms aren't being funded anymore by the government. Thus people have less money to spend and firms aren't able to expand. 2) Because of the instability of the economy and the dip in confidence, households tend to save their money instead of spend it. Additionally, financial institutions only invest when they expect the value to rise - which is not the case today and so investment goes down. 3) Because of the fall in expenditure and investment, the firms have to cut their cost and they do so by decreasing wages and firing their workers. The households have therefore less money to spend and so they consume less products which results into the firms having lower profit. In a crisis, the circular flow of income becomes a vicious circle. The fall in injections decreases aggregate demand which leads to the fall in aggregate supply. The economy thus shrinks.
The study of international business is fine if you are going to work in a large multinational enterprise but it has no relevance for individuals who are going to work in a small firms Evaluate this?
Not true at all. In today's world of computers and technology, at the click of a mouse any one can be globally connected. If small firms are going to compete & survive in a strained economy then staying on top of globalization is very relevant. Thus this statement cannot be evaluated because of its inaccuracy.
Why it is better when two firms compete?
It is good for two firms to compete, especially for the consumer. The best way to show this is by a basic example. If Company A is the only company that makes TVs, then they can charge whatever they want to because they are the only company that makes it. If Company B begins to make TVs, then Company A now has competition. Now, Company B could price their TV lower than Company A, and in return, Company A has to price theirs lower to keep up with the competition. Now, in today's world, throw in multiple competitors and that is what the economy is made of. It is great for the consumers, but bad for the firms because they won't make as much money as they would if they had a monopoly. The Sherman Antitrust Act was put in place to protect consumers from monopolies taking advantage of them.
What is the role of modern day gatekeepers?
Gatekeepers today refer, at least in European academia, to those on staff responsible for admissions and financial advisement for students. Some outside firms offer the same gate keeping role of educational institutions offsite.
What fundamental institutions established by Augustus are still used today?
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An estimated of how many women are assigned to all male institutions as correctional officers?
today an estimated 5000 women are assigned to all-male institutions
What happened in history today 6th of March?
On the 6th of March 1852, the Dutch telegraph traffic was regulated by law.
How are the churhes of today being similar to the shopping mall?
both institutions are designed to take your money
Arpanet What do you call this today?
ARPANET was started in the late 1960s by the federal government, industry, and educational institutions. Through the following decades, it evolved into what is known as the Internet today.
True or False Currently only member banks of the Federal Reserve System must meet reserve requirements?
False, before 1980 it was the case but today the new legislation requires all commercial banks to be members of the federal reserve system. All depository institutions became subject to the same requirements to keep deposits at the Federal Reserve. Members or not members are now on equal footing in ters of reserve requirement. I hope that helps Sara
Is penicillin still in the market today?
Yes, it is still commonly used today. However, it is carefully regulated and requires a prescription for use; as it is also a common allergen with potentially dangerous side effects for those who react to it.
Were does child labor occur today?
Throughout the world. In the USA, Britain, and Canada, child labor is limited and regulated. Most nations, not so much.
What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low?
1. What if firms expected future returns to be very high?
How do financial institutions calculate interest rates?
Financial institutions base their interest rates on fluctuation of today's market. If the market is doing well then interest rates are high. If the market is down, interest rates goes down along with it.
How did the Federal Reserve Affect banks?
The Federal Reserve System (also known as the Federal Reserve, and informally as The Fed) is the central banking system of the United States. It was created in 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907.[2][3][4] Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved.[3][5] Events such as the Great Depression were major factors leading to changes in the system.[6] Its duties today, according to official Federal Reserve documentation, are to conduct the nation's monetary policy, supervise and regulate banking institutions, maintain the stability of the financial system and provide financial services to depository institutions, the U.S. government, and foreign official institutions.[7]
