With your money not tied up in real estate your business can respond to opportunities in the market. In addition, your ability to borrow funds will not be as limited as with buying office space. You don't have to pay the full cost of the asset up front, so you don't use up your cash or have to borrow money. If you have not bought the asset outright, you won't have to worry about any overdraft or other loan taken out to finance the purchase being withdrawn at short notice, forcing early repayment · Easier to qualify. A strong credit rating will not be quite as critical for leasing as it would be for buying.
Mr. Clarkson is willing to increase the amount by a new agreement with Northrup Bank. The cash flow crisis and repayments of short-term debts are the root causes of Mr. Clarkson’s need for additional financing. This report includes financial analysis and recommendation upon the request of Northrup Bank Credit Department. Analysis Using the ratio analysis, basic insights can be gathered about the financial performance of the company. For this analysis, we don’t have the ratios for the industry; thus, we will examine the trends for the years including 1993-1995.
Stresemann controlling inflation was the main reason behind the success of the Weimar republic in 1923-1928. Do you agree? These actions taken out by Stresemann for controlling of Inflation between the years 1923 up until 1928 were indeed the main reason behind the Weimar republics success. This is enforced by Stresemann putting such things in place like the Dawes Plan, Introduction of new currency, French troops leaving the Ruhr, foreign affairs and economic growth. In the year 1924 one of Stresemann’s aims as Foreign Minister of Germany was to get the country back on its feet financially so that it would be possible to keep up with the set negotiations by the Treaty of Versailles.
It had a banking system; People were able to get back loans easily which encouraged people to invest in new machinery, railroads, and factories. Businesses were well protected by Parliament laws. Great Britain built a strong navy to protect its empire and overseas trade. There was no internal trade barrier, which encouraged internal British trade and circulation of good, thus strengthens Britain’s domestic economy. The demands for goods increased as farmers started to move from rural farms to urban cities.
Advantage: * Stabilize currency fluctuation * Reduction in administrative expenses: cost of managing infrastructure to maintain currency is reduced * Domestic financial institutions try improve their quality and efficiency of service as it means financial integration with the United States * No need to invest heavily in efforts to build market confidence in its own monetary policy as pegging creates a stable relationship with a currency whose reputation is already well established and secure. Disadvantages: * Monetary autonomy is lost * External interference in deciding policy structure Question 2: Evaluate the effects of the fiscal policies implemented by Menem and Cavallo in connection with the convertibility plan. Answer: Initially convertibility plan delivered growth of 4.7% between 1991 and 1999. Inflation rates were drop significantly and it restored the confidence of foreign and domestic investors. In the hindsight, investors lent continuously to Argentina.
Canadians increasingly moved to cities and suburbs, purchased cars, and bought new products such as televisions and electric fridges at the shopping centre’s that began to appear. Ottawa had developed stronger trade and economic ties with Washington during the Second World War. During the second half of the 1940s, the Canadian- U.S. free trade agreement fell through. Canada prospered in the postwar period: Canada's Gross National Product (GNP) jumped from $11.8 billion in 1945 to $18.4 billion in 1950. However, the years up to 1950 were nonetheless a time of adjustment and a period when it wasn't apparent that financial stability would be permanent.
Their preferred status as the government's banker caused others to view them as more secure, which led to their holding deposits and serving as a "banker's bank." That, along with an expanded role in payments and lending, led to their taking on a regulatory role, since they needed to ensure the quality of banks with which they were doing business. And finally, their power over the issuing of currency and tremendous capital holdings led to the development of monetary policy, for which central banks are now best known. In designing the new Bank, Glass and Willis took lessons from the First and Second banks. They removed the private role of the bank in commercial lending, so that the new bank would be a largely public institution.
(hit next) According to the first sub section of the home owners’ loan act, the act was created to provide emergency relief with respect to home mortgage indebtedness, (hit slide) to refinance home mortgages, to extend relief to the owners of homes occupied by them and who are unable to amortize their debt elsewhere, to amend the Federal Home Loan Bank Act, and to increase the market for obligations of the United States and for other purposes The importance of this act in extending relief was to issue loans to home owners at risk of foreclosure during the depression. (as you can see underlined above)(hit next) In order to illustrate how BIG the need was in supporting people with home owner debt I’d like to introduce to you some statistics. (hit next) According to Amy Hillier, a history professor at the university of Pennsylvania in her journal on planning history, she stated that “The number of foreclosures in the United States increased every year starting in 1926, reaching (hit slide) 248,700 in 1932 and (Hit slide) 252,400 in 1933. Foreclosures peaked in the spring of 1933 at a rate of 1000 per day. (Hit Slide).
To a large extent Germany was very economically stable as Stresemann introduced a new currency and gained loans from the USA under the Dawes plan. The Dawes plan was produced in 1924 by Gustav Stresemann, it was a USA backed plan which helped to stabilise the economy greatly. The first part of the plan was the introduction of the new rentenmark which would now be worth 100 of the old mark. The plan also gave Germany 800 million marks in loans to aid their economy. The introduction of the rentenmark greatly improved Germany’s economical stability as it helped solve the inflation crisis.
* Therefore, its government expenditure was more limited than other countries, and Erhard was able to be generous with social spending which enhanced stability of the young democracy. 2. Consumption demand * Government expenditure was more important than consumption demand, as government expenditure fuelled house building which ultimately played an important part in stabilising the economy as from 1949 to 1961, 6 million new flats were built and a total of 430,000 new homes provided by 1952 and 4 million by 1957 initiated by state investment and this was the motor of economic recovery. * There were incentives such as specialised subsidising savings programmes to buy own properties, which increased private demand. * This lead to confidence recovering, the demand for consumer goods such as vacuum cleaners and tvs began to show all signs of increasing prosperity.