The reserves in banks must correlate with the deposits made by customers. A decrease in ratio allows banks to extend and make new loans increasing money supplies. An increase in the ratio counteracts this process lowering availability. The discount rate charge also play a role in monetary policy. This policy is the cost the Feds ensue to depositing businesses when borrowing short-term loans.
Such a decline (and such a low percentage) indicates that management is not efficient in employing the company’s assets to make a profit. Also, the Return on Capital Employed had an even more significant decline – from 15.6% in Year 12 to (29.9%) in Year 14. This indicates very poor performance for FBN. In order for FBN to become profitable (efficiently, that is) ROCE should be higher than the rate at which the company borrows. In FBN’s case, their long-term debt ratios alone are 55.7% and 81.5% in years 12 and 13, respectively (and they’ve incurred interest rate increases); and ROCE in the same two years is 15.6% and 6.4%.
Unit 38 P1 Economic report From Ahmad Abby To Annette Madra Purpose of this report: In this report I am going to give a definition of the business cycle and the impact of changes in the economic environment with the emphasis on the effect that a recession would have on a company like Aldi. What is the business cycle? The business cycle is a constant but irregular activity in the economic environment. There are four different types of cycles in the economic environment these are as follows, the first one I am going to talk about is boom which is fast economic growth this is the peak of the economic environment. The second on is recession which is the economy slowing down, then the there one is slump this is when the economy hits rock bottom.
As of lately there have been down times due to the economy and aggressive competitors in the market. Some recommendations to the corporation are entering the global market, growth in private labels and entering untapped US markets (Palepu,
Expected future prices can also affect the demand curve. If it is suspected that Tylenol will be more expensive next month, it would cause in shift that increases the demand of Tylenol. Since people are rational, they know that buying more now will save them money later. The supply side of the market also has various factors which cause a change in supply. The prices of inputs is an imperative example.
Recent indicators display worsening conditions as mid January new unemployment claims have increased. The economy has continued to decline based on the unemployment rate, heavy equity losses in housing, and the continued difficulty in obtaining credit. Manufacturing output declines of the last few months of 2008 fell even more in January to the lowest since World War II. The exports had eased the demand decline domestically during mid 2008 but that market also experienced a decline by the end months. The reduction of energy prices mid 2008 is being credited for the overall inflation price slowing.
List a few reasons economists speculate could be the cause of the slump in productivity increasing presence in the work force of women and teens (had lower skills, less likely to take full time jobs),declining investment in new machinery, general shift of American economy from manufacturing to services B. Sharply rising oil prices in the 1970s also fed inflation, but its deepest roots lay in government policies of the 1960s—especially Lyndon Johnson’s insistence
Current macroeconomic issues 2.1 Steady growth GDP can be seen as “the total annual output of goods and services on which aggregate demand is spent” (Sloman, 2008, p.277); it can be calculated as the sum of consumer spending, investments, government spending and balance of import and export. 2.1.1 Current issue UK has a fluctuant GDP since 2009. There is both positive and negative growth in the recent years (Trading Economics, 2013). GDP of UK shrank by 0.3% at the end of 2012, which is mainly attributed to drop in mining and quarrying industry, after maintenance delays at North Sea oil field. Manufacturing is another sector that causes the negative growth in GDP; it has decreased by 1.5% than the year before.
The United States Federal reserve system otherwise known as “The Fed” is a essentially a central banking system for the United States. The Fed was created in 1913 after a series of financial panics. The responsibilities of the Fed have evolved over time from major events such as the great depression and are currently evolving as world finances tread lightly on uncertain futures. (About.com, 2012)"By raising or lowering the discount rate, the Fed can promote or discourage borrowing and thus alter the amount of revenue available to banks for making loans." Changes in these rates affect the public’s purchasing power by altering the availability of bank loans and lowering borrowing costs.
The economy is considered to be very unstable at the current time, and it is the duty of the United States government to do everything in their power to once again stabilize the once booming economy for the sake of the entire country and its citizens. Current Unemployment Rate Currently unemployment rates in the United Sates are a less than desirable 7.9%. Although, this number has decreased by 2.1% from its peak in recent years, it is still believed that there is a long way to go. Prior to the recession unemployment rates fluctuated between 4% and 6% (www.bls.gov, 2012). This increase in the unemployment rate is having considerable impacts on the economy.