...ch Paul Wielgus ECO 212 Money: Functions and Characteristics Momoh Dudu July 18th, 2014 Money is something we all use every day and something we all need to survive. Money also provides us with our needs and wants. Our needs being food, water, shelter, transportation and wants being things like TVs, boats, big houses or what some people may call material possessions. Money has three basic functions in our economy today unit of account which is where money takes the place of having to have something of equal value to barter for you would pay a set common price for the good or service. Next we have a medium of exchange which is where people work and get paid and income or go to the store and spend money on groceries. Money is our medium of exchange in today’s world. Finally we have store of value which is basically saving your money that you earn for future use. Humans would save money like a squirrel saves nuts for the winter it is the same concept a squirrel would not gather a bunch of nuts and then eat them all the same day, as a human would try not to spend their entire paycheck every time they get paid. I use money in all three of these functions, unit of account, is how much I pay for supplies for my business it is the same every time. Medium of exchange is I get paid to perform a service I then take that money and pay bills for my household or buy food for us to eat. Store of value, I try to save as much money as possible for my children’s future...
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...The Evolution of Money In separate places, under different cultures, all over the world, the concept of a "medium of exchange" grew. People noticed that some goods were easier to trade than others. And people also noticed that these "more tradeable goods" had similar properties: * They were durable * They were easily divisible into larger or smaller amounts. * They were comparatively scarce, procuring them required effort. * They were "homogeneous". Every item of the commodity was exactly like every other item. * They were convenient. It was easy to carry enough around to made trades for other commodities. Over time, a shorter and shorter list of commodities passed all these tests. These select commodities began to exhibit a sixth property, all important in the evolution of money. This short list of commodities (most of them metals) had one thing in common with all other commodities. They were useful and commanded an exchange value in their own right. But because they were easier to trade than any other goods, they came to be perceived as having a value over and above their basic utility. They came to have a value as a "most (easily) tradable good". They came to have a value as a MEDIUM OF EXCHANGE. Once this value became widely recognized, the commodity in question was no longer "consumed" for any but the most vital purposes. Instead, it was used in exchange. It had become MONEY. The Significance of Money We live in a culture that is 100% monetized....
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...Give a concise summary of the milieu of the distinctive characteristics of the contemporary human resource milieu? (Oct 2010) * Changing variables at international and global level ANSWERED BELOW * Restructure and rationalise the HR process using the following processes: * by downsizing (clearing redundant staff with the aid of retirement packages); * right-sizing (auditing determines the skill pool so that optimal service can be achieved in critical areas), * by out sourcing (private institutions that specialize in the work concerned are given the public sector work under contracts agreed by both parties) and, * by re-engineering (constant investigation and adaption of HR methods and systems ensure the concept of total quality management). * Equal representation and affirmative action. With the aid of White Papers and the RSA Bill of Rights (1996), equality and representativeness is a goal of the workplace. The aim of equality of opportunity is to provide special opportunities to members of specific groups, who are either absent from or under-represented in certain areas of work, so that they can catch up with applicants and employees in the more privileged groups. An equal opportunity programme acknowledges the value of objective employment standards and aims at advancing personnel to that standard. Affirmative action refers to specific steps, beyond ending discriminatory practices, which are taken to promote equal opportunity...
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...gratitude to our assignment guide Ms. ANKITA RAJDEV, Asst. professor for her valuable guidance and help in completion of this assignment. We feel obliged to all the respondents, friend and other who have shared their valuable time and opinion, for making significant contribution directly or indirectly in the assignment. INDEX S.no. | Topic | Page no. | 1 | INTRODUCTION TO FINANCIAL MARKET | 4-5 | 2 | MONEY MARKET | 5-6 | 3 | CAPITAL MARKET | 6-8 | 4 | PRIMARY CAPITAL MARKET | 8 | 5 | SECONDARY CAPITAL MARKET | 8-9 | Financial Markets Introduction Financial markets are a mechanism enabling participants to deal in financial claims. The markets also provide a facility in which their demands and requirements interact to set a price for such claims. The participants in the financial markets are the borrowers (issuers of securities), lenders (buyers of securities), and financial intermediaries. Financial markets comprise two distinct types of markets: * Money market * Capital market Characteristics of financial markets * Financial markets are characterised by a large volume of transaction and the speed...
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...Course Description Nature and scope of economic science, its relationship with other social sciences; quantification of economic variables, theories of consumer behavior and of the firm: linear economic models; market structures; social accounting and basic elements of economic planning. Learning Outcomes: At the end of the course and having completed the essential reading and exercises, the students will be able to – Analyse and interpret the relationship between factors influencing demand and supply Explain and analyse the nature of production and its relationship to costs. Analyse business practices with respect to pricing and competition. Understanding the various strategic options in banking sector in the context of consumer behaviour and markets analysis. Understand and describe the concepts and measurement of gross domestic product, unemployment, and inflation. Understand and describe the difference between business cycles and economic growth and the factors that contribute to each. Page 1 of 6 Understand and describe the concept of Macroeconomic Equilibrium. Understand and describe how Aggregate Demand and Aggregate Supply determine equilibrium price and output in the short-run and long-run. Understand and describe the multiplier concept, how it is computed, and its qualifications and limitations. Analyze and describe the concepts, tools, and implementation of fiscal policy, its limitations and relative advantages and disadvantages, and how it affects aggregate...
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...Concerned with the means, efficient use of resources like people, money, and equipment (“Doing things right”) Managers: • Who are Managers? • Levels of Managers Top Managers • Responsible for making decisions about the direction of the organisation. • Examples; President, Chief Executive Officer, Vice-President Middle Managers • Manage the activities of other managers. • Examples; District Manager, Division Manager First-Line Managers • Responsible for directing nonmanagerial employees • Examples: Supervisor, Team Leader • Types of Managers Nonmanagerial Employees • People who work directly on a job or task and have no responsibility for overseeing the work of others. • Examples: sales and service staff Managers • Individuals who direct the activities of others in organisations. Functions of Management ( Fayol): • Planning, Organising, Leading, Controlling The Functions Approach • In the functions approach proposed by French industrialist Henri Fayol (1916), all managers perform four management activities • These activities are relevant to all managers, in all fields and industries • Originally Fayol proposed five functions/activities – plan, organise, command, coordinate and control Management Roles (Mintzberg): • Interpersonal, Informational, Decisional Characteristics/Skills Needed (Katz): • Conceptual, Interpersonal, Technical, Political Management Functions Planning • Defining the organisational purpose and ways to...
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...1 THE ECONOMIC MOTIVES FOR CHILD ALLOWANCES: ALTRUISM, EXCHANGE OR VALUE OF INDEPENDENCE? Lisa Farrell*, Paul Frijters** and Michael A. Shields* * Department of Economics, University of Melbourne, Australia ** Tinbergen Institute, Free University Amsterdam, Netherlands August 2002 (preliminary draft) Abstract This paper looks inside the “black box” of the family and examines the determinants of inter vivos transfers in the form of allowances given to children. We consider in a simple model two main competing explanations for the transfer of money from parents to children in the form of regular allowances, namely altruism and exchange. We also extend the altruism framework to include unobserved child heterogeneity in monetary autonomy or the 'value of independence'. We use a unique dataset drawn from the British Family Expenditure Survey, which enables us to explicitly test both the inter-generational predictions of the various models, and through a study of siblings, we are also able to consider the intra-household aspects of such payments. Using both random (inter-household) and fixed-effect (intra-household) estimators, we find robust evidence of an nshape relationship between a child's external income and the receipt of allowances from parents. Importantly, this estimated profile does not fit the predications of simple models of altruism or exchange, but does fit an altruism model with unobserved heterogeneity. Further support for the importance of the value of independence...
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...Mock Exam MNA106 1(a). What are the key functions of a financial system? [8 marks] The main functions of financial systems are to: • provide the mechanisms by which funds can be transferred from units in surplus to units with a shortage of funds in order to directly or indirectly facilitate lending and borrowing • enable wealth holders to adjust the composition of their portfolios • provide payment mechanisms • provide mechanisms for risk transfer 1(b) Describe the key functions of financial markets. [6 marks] PRICING FUNCTION: financial markets provide both buyers and sellers with “fair” valuation of the asset they are buying/selling DISCIPLINE FUNCTION: financial markets are regulated – regulation encourages issuers of securities (borrowers) not to engage in activities that the market deems detrimental to the value of their assets 1(c) Describe the problems arising due to information asymmetry. [12 marks] Adverse selection is the problem created by asymmetric information before the transaction occurs. It arises when the potential borrowers who are most likely to produce an undesirable (adverse) outcome are the ones who most actively seek out loans. Thus adverse selection increases the probability that bad credit risks will get loans. As a consequence, lenders may decide not to give any loans, even to good credit risks. Moral hazard is the problem that occurs after the transaction is made. It is the risk (hazard) that the borrower will engage in activities...
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...credit/debit cards, small-scale electronic commerce is constrained by the limited nature of existing e-cash (or ‘micropayments’) systems. This paper outlines the evolution of electronic payment systems, leading to an analysis of the essential characteristics of e-cash, and microeconomic / macroeconomic implications of the development of e-cash. Finally, the key characteristics of successful electronic payment innovations are analysed using binary dependent variable estimation techniques on data derived from the Electronic Payments Systems Observatory (ePSO) database. Keywords: e-cash, micro-payment systems, e-commerce 1. Introduction Electronic commerce is growing at an increasing pace and financial instruments are adapting to the increased volume of spending taking place over the Internet (Economides, 2001). Until now, most buyers have used credit arrangements or checking accounts as the principle means of paying for Internet purchases. There is however, a 'price umbrella' underneath credit-card transactions that makes them an excessively costly financial instrument for low-value purchases (Rivest, 1998). Given the transactions costs involved with card transactions, the opportunity gap that remains in terms of e-money products lies in developing a popular alternative to conventional cash as a convenient way to make small payments (‘micropayments’1). For many Internet transactions, electronic cash (ecash) could...
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...i ACFI 2005 : Finance - Tutorial Solutions Tute 1: 07/09/12 Chapter 1 A modern financial system: an overview 2. (a) Discuss the role of money in a financial system. • Money is a financial asset that facilitates financial and economic transactions. • Money is a medium of exchange—swapped for goods and services. • Money is a store of value—wealth is held or measured in money terms. • Money is a standard of deferred payment—used to record indebtedness. • Money is a unit of account—transactions are priced in money terms. • Currency is generally divisible, portable and durable. (b) Does money have to be currency? If not, what are some alternatives? • Money is anything that is universally acceptable as a medium of exchange. • Further, money generally has the characteristics of being divisible and a store of value. • Examples—currency, EFTPOS and digital money. 4. The major financial institutions within the international markets fall into five classifications. Identify and briefly explain each of these classifications. Give an example of different types of institutions that operate within a classification were appropriate. • Depository financial institutions—they attract savings from depositors and investors and provide loans to borrowers. Examples: commercial banks, building societies and credit unions. • Contractual savings institutions—there liabilities (sources of funds) are contracts that generate periodic cash flows, such...
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...http://acehomework.com/ECON-102-Complete-Course-American-Public-University-1111118.htm?categoryId=-1 If You Face Any Problem E- Mail Us At JohnMate1122@gmail.com 8 – Week Course Outline Please see theStudent Handbook to reference the University’sgrading scale. Table of Contents Week Topic(s) Learning Objective(s) Reading(s) Assignment(s) 1 Introduction to Macroeconomics • LO 1: Describe the characteristics of demand and supply, and apply the demand and supply model. • LO 2: Define real gross domestic product and identify the phases of a business cycle. • LO 3: Define inflation and deflation, and explain how each affects the price and economic growth of an economy. • LO 4: Articulate why the price-level changes and how it can affect economic stability. • LO 5: Explain how unemployment is calculated and measured in the United States. • LO 6: Demonstrate an understanding of the role of the government in the economy. • LO 7: Identify the components of the macroeconomy and relate them to the circular flow diagram. Describe the characteristics of demand and supply, and apply the demand and supply model. Unit 1 http://www.saylor.org/courses/econ102/ DQ1: Self Introduction and Understanding Plagiarism. DQ2: The three primary concerns in macroeconomic analysis. Please submit your responses to DQ1 and DQ2 to the Forum Section. 2 Measuring Aggregate Output • LO 8: Describe the measurement of GDP using the expenditure approach and the income approach...
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...http://acehomework.com/ECON-102-Complete-Course-American-Public-University-1111118.htm?categoryId=-1 If You Face Any Problem E- Mail Us At JohnMate1122@gmail.com 8 – Week Course Outline Please see theStudent Handbook to reference the University’sgrading scale. Table of Contents Week Topic(s) Learning Objective(s) Reading(s) Assignment(s) 1 Introduction to Macroeconomics • LO 1: Describe the characteristics of demand and supply, and apply the demand and supply model. • LO 2: Define real gross domestic product and identify the phases of a business cycle. • LO 3: Define inflation and deflation, and explain how each affects the price and economic growth of an economy. • LO 4: Articulate why the price-level changes and how it can affect economic stability. • LO 5: Explain how unemployment is calculated and measured in the United States. • LO 6: Demonstrate an understanding of the role of the government in the economy. • LO 7: Identify the components of the macroeconomy and relate them to the circular flow diagram. Describe the characteristics of demand and supply, and apply the demand and supply model. Unit 1 http://www.saylor.org/courses/econ102/ DQ1: Self Introduction and Understanding Plagiarism. DQ2: The three primary concerns in macroeconomic analysis. Please submit your responses to DQ1 and DQ2 to the Forum Section. 2 Measuring Aggregate Output • LO 8: Describe the measurement of GDP using the expenditure approach and the income approach...
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...BACHELOR OF COMMERCE (B.COM.,) PAPER – 2.1 MANAGERIAL ECONOMICS UNIT – I CHAPTER - I SECTION - I Definition of Managerial Economics Managerial economics refers to those aspects of economics and its tools of analysis most relevant to the firm’s decision-making process. According to MeNair and Meriam, managerial economies consists of the use of economic models of thought to analyze business situations. Some writers consider managerial economics as the integration of economic theory with business practice for the purpose of facilitating decision-making and forward planning by management. The underlying idea of all these definitions is that managerial economics means economics applied in decision-making. So we may consider managerial economics as a special branch of economics bridging the gap between abstract theory and managerial practice. It may be pointed out here that effective decision-making at the firms’ level calls for a careful analysis of a choice between alternative courses of action. Economic theory offers a variety of concepts and analytical tools which can be of considerable assistance to the manager in his decision-making process. In fact actual problem-solving may require many skills and tools which are not available in the traditional economist’s. For example, knowledge of accounting and of statistical concepts and methods, which are not taught in economics, can help the analyses to apply more effectively the economic...
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...1. Define Finance. Discuss the principles of Finance. According to L J Gitman, “Finance is the art and science of managing money.” Finance is concerned with the process, institutions, markets and instruments involved in the transfer of money among and between individuals, business and governments. Finance deals with-Financing, investment and dividend. Principles of Finance * Principles of risk and return: It says, “No risk, No gain” * Principles of time value of money: while making any investment decision, time value of money should be considered. * Principles of Liquidity and Profitability: Need balance of liquid money. * Principles of Perfection: Current assets, fixed assets should be collected with careful consideration. * Principles of Business Cycle: Business depends on various economic conditions (Boom-Recession-Depression-Recovery-Boom.) * Principles of Diversification: Do not put all eggs in one basket. 2. The ultimate goal of a business is to maximize wealth, not profit maximization-Explain. Shareholder’s Wealth Maximization means maximizing the price of the firm’s common stock. It means to increase the net present value of a firm. Shareholders' wealth is maximized when a decision generates net present value. The net present value is the difference between present value of the benefits of a project and present value of its costs. A decision that has a positive net present value creates wealth for shareholders and a decision that has a negative...
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...of people used to sit in the bench particularly in Lombardy street of Italy for taking deposit and lending money as a banking business. Definition of Bank: ➢ Different authors have defined the “Bank” in different ways with a common principle to accept deposit from the public and lending the same to the borrowers. ➢ Some important definitions are: ➢ “A bank is an establishment which trades in money, and establishment for deposit custody and issue of money, and also for granting loan and discounting bills and facilitating transmission of remittances from one place top another” …... from Imperial Dictionary. ➢ “An organization through which funds in the form of money or claim to money are assembled and transferred from those individuals and firms having a surplus of economic goods(as represented by such funds) to other individuals & firm whose needs for funds exceed their existing supply”..... from Rollin G. Thomas. ➢ “Banking" means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise. ……………. from The Bank Company Act, 1991. Banker: ➢ Section-3 of NI Act. states that Banker means “ a person transacting the business of accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwise and...
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