2. Companies in some countries obtaining unfair commercial advantages from the use of particular national accounting standards. 3. The complications in negotiating commercial arrangements for international joint ventures caused by different accounting requirements. 4.
Issues such as money inconsistencies and banking panics were the reason congress established the Federal Reserve Act which was signed into law by Woodrow Wilson on December 23, 1913. In his word it was created “to provide for the establishment of Federal reserve banks, to furnish an elastic cur¬rency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes.” (FRS, 2005) The Fed operates independently by financing its own operations. These finances are generated by the actions of The Board of Governors. This is a seven member board which is appointed by the president. Under them, there are twelve Regional Reserve Banks and each of these has nine directors as well.
The Federal National Mortgage Association, commonly known as Fannie Mae, was founded in 1938 during the Great Depression as part of the New Deal. It is a government-sponsored enterprise, though it has been a publicly traded company since 1968. The corporation's purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities, allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on thrifts. In the 1968 change, Fannie Mae's predecessor was split into the current Fannie Mae and the Government National Mortgage Association "Ginnie Mae". Ginnie Mae had the federal backing while Fannie Mae appeared to have federal backing.
Financial Analysis A company’s strengths and weaknesses are better understood by their financial statements such as Income Statement, Cash Flow statement, and Balance sheet. As Financial consultants, our goal is to help CanGo understand their financial statements and where CanGo needs to improve to gain the competitive edge in the market. Every company needs to understand their own financials before analyzing the market or industry. After analyzing CanGo’s efficiency ratios, we found them to be very un-attractive for investors. For example, CanGo has a very high receivables turnover rate.
How and why was the unification of Germany possible? Massive migration to the West Election Financial aids from the West USSR accepted the aids and allowed the unification. 35. How did Gorbachev’s reforms lead to the disintegration of the Soviet Union? As he abandoned the party’s monopoly on political power and machinery controls, the Moscow leadership declined and harsh regulations were de-imposed.
The Federal National Mortgage Association, commonly known as Fannie Mae, is a stockholder-owned corporation chartered by Congress in 1968 as a government sponsored enterprise, but founded in 1938 during the Depression. Contrary to some beliefs, Fannie Mae does not make home loans directly to consumers, but rather functions as an intermediary in the U.S. secondary mortgage market. By purchasing and securitizing mortgages, Fannie Mae facilitates liquidity in the primary mortgage market by ensuring that
One outcome of this effort was the General Agreement on Tariffs and Trades (GATT). GATT was a precursor to the World Trade Organization (WTO), an international consortium comprised of member nations whose goal is to further reduce or eliminate barriers to international trade. Several other organizations whose goals are to promote international trade are the International Monetary Fund (IMF), and the World Bank. The International Monetary Fund was established in 1944, and its purpose is to “maintain order in the international monetary system” (Hill, 2009, p. 10). The World Bank, also created in 1944, is chartered with making low-interest loans to poorer nations wishing to invest in improving their infrastructure.
In the case of our government, debt is managed primarily by selling bonds. The process is cyclical as the government has to sell new bonds to pay for older bonds that have matured. It is important to realize that debt should be judged in relation to assets. While debt is probably never a good thing, in the case of the U.S. economy it is not as bad as it seems. When we view some of the assets of the United States such as natural resources, skilled workforce, and tax revenue generating businesses, we see that our assets have enough value to sustain our current debt level
Although both sides have a reasonable argument, democratizing the Fed would be a beneficial idea. This way the American people would have their own input into who is controlling the bank of America. We are facing such a tough financial situation today and it is in the best interest of the American people to have a say in who is choosing what's best for the
The role “has expanded, but its focus has remained the same” (Federal Reserve), as a central bank for the United States. Although the primary objective of the Reserve was as a “safety net”, economists argue that the Federal Reserve may have created the opposite. The Great Depression (1929) was a time of economic turbulence, starting from the Stock Market crash in October of 1929, up until the implementation of Roosevelt’s New Deal, leading to economic recovery, into World War II. The Reserve, which was “an institution of new order for the efficacy of government” (hoover.org), has been associated to a cause of the Depression. Economists argue that the Reserve was “emotionally supportive of government intervention”, and that government action provided a form of solvency in case of a major failure of banks and other financial institutions.