Essays on Loans

Chapter III

This chapter will review the background of Real Property Law in the Kingdom of Saudi Arabia. In order to lay the foundation for comparisons in subsequent chapters, the elements of the Saudi judicial system and real property law will be reviewed. The background information pertaining to Saudi Arabia will feature the judicial court system, the property rights and real property ownership. A review of the current mortgage law in Saudi Arabia will be analyzed as well as possible reform to include the application of anti-deficiency laws.

Introduction

Saudi Arabia is governed by a monarchy. Its current legal system under the ...

[Submission Date] This paper is written to present a short summary of an article titled “The coming debt bust” that was published on 7th May 2016 in a magazine named “The Economist.” The article presents the concrete reasons for which the Chinese economy has been facing financial troubles. Such problems may continue to rise if the prevailing financial situation (concerning debt and lending practices) in China is not controlled to an optimum level. The article presents that after the global financial and economic crisis of 2008, China’s debt level increased where the debt-to-GDP ratio increased to an alarming ...

Similar to other types of emergencies, disaster planning must also take into consideration the likelihood of a flu outbreak, which may, or may not be mitigated through the use of flu shots, which have been known to be unreliable in the past. The goals and objectives of Baltimore’s Office of Sustainability involve protecting the safety, health, and welfare of the residents and visitors of the City of Baltimore (Baltimore Office of Sustainability , 2017). This paper will analyze the case study considering the options and organizations required to deal with a flu outbreak in the community, and a high ...

Introduction

The financial crisis of 2007/9 was the worst in the U.S. since the Great Depression of the 1930s. It was the cause of the failure of some of the biggest financial institutions including Washington Mutual which was closed in 2008, and its assets transferred to JP Morgan. In 2008, the crisis reached its peak with loans dropping dramatically to the lowest levels to be witnessed in a half a century. For example, new loans to large borrowers fell by 47 percent in the fourth quarter of 2008 as compared to the previous quarter and by 79 percent relative to ...

Question & Answer

Part 1: 5 Questions 1) What socio-economic groups do students on your campus come from? I noticed students from my campus like to drive nice cars, and they mostly come from a lower-income status. Some of these students come from other countries. I met a lot of them during my first semester. Sometimes the students have a hard time paying their car loans on time. 2) Do students on your campus frequently receive credit card solicitations in the mail? Do groups set up tables or booths inviting students to apply for credit cards? Yes, some students on my campus ...

Project Proposal: The Risk of Starting a Small Business by an Emarati's Women By Taking a Loan from Abu Dhabi Islamic Bank

Introduction

Over the years, various steps have always been taken to ensure that the Emirati women are then able to be empowered. This has included through the various issues such as the increase in their involvement in the workforce and further the setting aside of certain positions within the society that need to be filled with women. All these steps have been taken to empower women. Even though these measures may be deemed to be similar to many ...

Part 1

Part 2 I agree with Akers & Chingos (2014) that, “increases in lifetime incomes of college-educated Americans have more than kept pace with increase in debt loads.” According to their research, the average household with student debt has experienced an increase in annual income of $7400 while total debt increased by only eighteen thousand dollars. The statistics show that income of educated Americans has been increasing at a faster rate than the increase in student debt and the increased annual income can pay the additional debt within two to three years (Akers & Chingos, 2014). The increase in borrower’s income ...

Institutions

The Fallacy of Microfinance Microfinance has been billed by many as a solution to the persistent problem of poverty. This is as result of the fact that it has been hailed to create and expand micro-enterprises and in the process improving the socio-economic situations of those that own the micro-enterprises, who generally tend to be women. However, according to Banerjee, Duflo, Glennerster, & Kinnan (2014), microfinance does not necessarily lead to people rising out of poverty. The argument held by Banerjee, Duflo, Glennerster, & Kinnan (2014) gives credence to the apprehensions some have had about the romanticized stories on microfinance. I ...

HISTORICAL CAUSES OF POVERTY IN LEDCS

There exists different causes of poverty ranging from political institution to geography or colonization to industrialization, over population, wars and corruption among others. But in this paper, our interest will be on the historical causes of poverty such us; colonization, civil wars and the 1970 debt crisis in the LEDC. Countries can be classified into two categories, that are the MEDC a More Economically Developed Country a good example is the USA, Germany and UK and an LEDC a Less Economically Developed Country for example, Sudan and Ethiopia. There are many reasons as to why these categories exist. One ...

Introduction

Bank typology has grown more complex as more formerly niche banking services gain greater customer bases, encouraging different banks to shift focus from the traditional retail banking format to a more complex and specialized arrays of banking services. Moreover, large banks, particularly multinational companies, maintain their retail operations while serving non-retail accounts, such as businesses, investors, and purely online customers (Pritchard, 2016). Further, certain organizations offer banking-like services to its members, such as credit unions and savings and loans associations (S&Ls). Thus, to manage this typological complexity, this explorative paper covers only primary forms described in its most typical ...

Is the Current Student Loan Policy in the United States Fair and Equitable?

Is the Current Student Loan Policy in the United States Fair and Equitable? The student loan policy tries to accommodate the needs of various students through grants, borrowing limits, loans, and federal work-study programs among others (Blumenthal, n.d.). Despite its effort to improve the affordability of education for all, there is still a challenge that hinders the fairness and equitability of the policy in the USA. The high interest rates scare students who are uncertain about their ability to repay the loans. Many post-traditional learners who seek educational advancement, for instance, work in low-paying jobs. It makes it difficult ...

Why do Some Students Fail to Finish College in the U.S.?

Introduction

One of the major reasons why there are individuals who could not attend or finish college is poverty. In the United States, for example, poverty is the biggest hindrance to successfully completing college. Over the past several years, college tuition has increased dramatically. As compared to other primary goods, tuition fee increases almost twice as much while the average income of the majority remains almost the same. In just two decades, it has been observed that college tuition fees have increased by 500% while basic commodities increased only ...

Introduction

In the United States, some bodies have been formed with the aim of preventing consumer and investor exploitation. These bodies are aimed at providing financial protection to the citizens. Some special laws such as Usury laws have also been formed to protect the citizens from exploitation. These bodies include the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of Currency, the Security Exchange Commission and the Financial Industry Regulatory Authority (FINRA) (Mckay & Seale, 2000).

The Federal Deposit Insurance Corporation (FDIC) and its purpose

The Federal Deposit Insurance Corporation (FDIC) is an independent public corporation based in the United States. It was formed in the year 1933 ...

COLEEN COLOMBO AND COLLEAGUES RESIST MORTGAGE FRAUD

SYNOPSIS The year 2004 had impacted the life of US citizens in various ways. It provided opportunities for the citizens to be the homeowners. The case study is based on that time period. Coleen Colombo was one of the employees of BNC in the California Branch. Coleen was a senior underwriter in the company since 2003. The branch performed several duties related to providing loans to the clients and as an employee of the company Coleen did an outstanding job in her position. However, the thing ended up with some unexpected outcome and provocation suit was recorded in the ...

for the Success of a Business Enterprise In this age of globalization and fierce competitions, the importance of financial management in operating a business establishment has increased many folds. The role of financial management has evolved beyond managing the day-to-day business to encompass strategic planning. A growing, successful business needs to recognize the importance of financial management and its contribution to achieving business goals (“Financial management and business success – a guide for entrepreneurs” 3). It embraces diverse functions from effective administration and compliance, managing cash flow, and tracking and measuring performances to developing plans that help senior management to ...

Background

Successful modern business marketing lays emphasis on meeting the needs of the customers. This focus is a departure in the opposite direction from the traditional business whose major concern was selling its products or services. Corporate Social Responsibility (CSR) is one way of meeting not only the direct customers’ desires but also the needs and expectations of all the stakeholders of a business (Ortenblad 2016). Unethical profiteering practices of large companies and customer awareness due to free flow of information have forced many companies to make CSR a key strategic focus in their conduct of business. Besides enabling a ...

We have recently come to a time where college education has grown to mean little apart from the increasing concern over high college tuition. Maybe it is only fair given the unreasonably huge cost which the colleges are charging, one which is rising even faster than inflation itself. But it is worth exploring the true benefit which is beyond the monetary cost itself here. College is far beyond its worth in money and people from previous generations are quite likely to be in agreement of what college meant and the benefits that it brought into their lives. With all ...

1. Jackson was remembered as one of the most popular presidents who did a lot to strengthen the US. Nevertheless in order to achieve this goal he used undemocratic methods of government. Jackson's presidency began with great success in the economy but war with the banks was a major issue of Jackson's presidency. He approved the transfer of government funds from the accounts of the Second Bank of the United States in more robust credit institutions. Second Bank actually reduced the amount of money in circulation, demanded to return of all loans and refused to issue new ones. Jackson’ ...

Jay Kiley

Dr. Lorrie McGovern Literature Review Abstract Innovations are inevitable in the business nowadays as they lead to the increased efficiency. The more efficient the company is, the higher the profit it gains. This is equally fair for the product innovation and management improvement. Moreover, financial innovations are now even more desired. All these changes are beneficial for all parties, as development of the entrepreneurship leads to the social and political improvements. Therefore, within this paper, a literature review will be performed to reveal main discussions on the innovations in the financial management, especially in the commercial lending. Both advantages ...

1. Misconceptions Money generation remains central to economic activity. The process of how money is generated / created and destroyed is not, in fact, readily understood and is subject to numerous misconceptions. If anything, main conceptions about money creation and destroy assumes a linear conceptualization mode. Typically, money is widely – but mistakenly – believed to be created and destroyed by a direct relationship by which an owner places money deposits in a financial institution which, sooner or later, lends money to borrowers and hence creates more money. In modern era, particularly in a global financial system in which financial transactions ...

The two thousand and eight financial crises resulted in significant economic turndowns. Before it began in two thousand and seven, prices of housing rose, new investment options emerged, and risk diversification increased. Following the crisis, house prices fell by huge percentages. It exposed economic weaknesses of the United States. Additionally, it led to an increase in the unemployment rate by ten percent (Mishkin, 2011). Approximately, nineteen trillion dollars of household wealth were lost. Lehman Brothers collapsed in two thousand and eight affecting the global financial system. Taxpayers had to bail out various banks to stabilize the system. This paper ...

Introduction

Milton Friedman was a renowned economist and a reputable advisor of the United President Ronald Reagan and Margaret Thatcher who was a Conservative British Prime Minister. Friedman developed an influential and controversial manifesto on the role of the government in a free society on his work titled Capitalism and Freedom. His fundamental objective was to promote the laissez-faire economic policy by often disapproving the interventionist policies held by the government and their cost in economic efficiency and personal freedom within and outside the United States. It is with this light that Friedman provide his view on the significance of ...

The Federal government has limited options to address economic issues. These are generally described as “Fiscal policy” and “Monetary Policy.” In the most general terms, fiscal policy involves government tax and spend programs. The underlying theory is that tax cuts increase consumers spending ability by leaving consumers with more money and government spending provides a more direct stimulus by injecting money into the economy. Fiscal policy is generally identified under the popular “Keynesian Economics” label. Monetary policy, on the other hand, involves the central bank (the Federal Reserve Bank system, or “the Fed”) “adjusting” the money supply through interest ...

Market discipline has evolved from the real need to address the financial concerns that brought on the last few financial crises. The international economy is tied deeply to the financial sector, and international organizations such as the International Monetary Fund and the World Bank have been tasked with providing ease of liquidity throughout the world, while also helping to protect the flow of capital across borders to facilitate trade. These financial institutions are remarkably limited to what they can do because they hold little sovereignty over the independent nation-states that compose them; only the World Bank is effective when ...

Educational affiliation

Abstract Corporate Social Responsibility and Ethics The paper analyses the role of the ethics and corporate state responsibility in the terms of the automotive industry. The study is to evaluate the role of the local ethics and the Corporate Social Responsibility in the process of the international development of the automotive industry. The key objectives are to evaluate the roles of these two concepts, find out the role of the customers’ awareness of the unethical behavior, and describe the patterns of change. The study validates why the car industry should focus on the ethical considerations and the CSR. This ...

CHAPTER II

This chapter will seek to conduct an absolute inquiry into what makes up security interest laws in the United States. In order to lay the foundation for comparisons in subsequent chapters, the three main elements of the study of the Saudi system will be reviewed here in the context of U.S laws with an emphasis on California state law. The features of the California legal system will include the assessment of foreclosure rules and patterns in California. This will include a detailed fact-based evaluation of CCP580 (b), CCP580 (d) and CCP726 (a). The different components will enable the study ...

The most innovative and creative people have the opportunity to sell their ideas large and wide without much struggles in the present business environment. When thinking of creativity, I think of nobody else but Shivani Siroya, the Chief Executive Officer (CEO) of InVenture (Tala). Siroya’s creative mind managed to solve financial problems affecting millions of people, especially from developing nations. The entrepreneur came up with an online microfinance system capable of loaning people money without having to look at the individual’s credit history. The company, presently known as Tala, operates in East and South Africa. I find ...

Unemployment affects college graduates the most, especially when they have taken on a lot of student loans. Expensive tuition and living expenses for at least three years mean that college students rack up a lot of debt by the time they graduate. Immediately after graduation, the students do not have the freedom to wait and choose for the right job or a job that they would like because it is either unavailable or because they have to start paying off their debts immediately. With the number of college students increasing and the economy not at its best, unemployment is ...

ContentsPage

Executive Summary 3 Introduction 4 Discussion 4 Conclusion 7

References 10

Executive Summary Quality education is not always equals to a higher budget. This kind of education can be achieved by maximizing the readily available resources and optimizing human resource skills, and using modern technology at human advantage. When environment and human resources, and modern technology are properly used, an excellent quality of education is possible without the fear of workers’ strike and student protests. This study wants to present a possibility of a cost less quality education among the leaders and administrators of St. Vincent Community College. It is a ...

On 23rd June 2016, Britain voted out of the European Union through a referendum. The decision by the Britons marked a momentous occasion in history as different consequences were seen. These implications were both political and economic. For instance, the freedom of labor was curtailed--immigration, trade between Britain and the entire European bloc was reduced, and the sharp decline of the pound followed. This paper strives to explain the economic implication of Brexit both in Britain, and the world. Since the inclusion of most European countries into EU, Britain has experienced immigration from the different member countries. The figure ...

The Asian Financial Crisis that occurred in 1977 had a huge negative impact on various countries including South Korea, Singapore and specifically hampered their banking sector. However, China was not swamped in this financial catastrophe and sustained financial growth. ‘Nonetheless, China has numerous banking hitches similar to its neighboring countries, especially poor corporate governance, over dependence on banking system, and vast number of bad loans’ (Peng). Chinese banking industry certainly has a substandard governance and corporate management that is inundated with political interfering from the Government. There is a collision of interest various stakeholders as in the ‘central political ...

Imagining a family whose income is $100,000 per year with a burden of repaying student loans, I think it will make perfect sense if the payer defaults. The priorities in a family set up should be listed in an order of necessity and importance, and before one gets to repaying loans, he has to sort expenses like rent and food as well as clothing. Other necessities in this list will include budgeting for gas fuel and other facilitation costs. If the income is not enough to cover for these expenses, then it is perfectly okay for the loanee ...

BUSINESS: UNETHICAL BUSINESS PRACTICES

L. Dennis Kozlowski, CEO of Tyco International Scandal A fish rots from the top down. This phrase sums up the scandal of Tyco International when its CEO, Dennis Kozlowski, was found guilty on many fraudulent accounts. His actions were in direct violation of the accounting ethics. Kozlowski was arrested along with many of his company officials as partners in crime. When the CEO of a company is involved in violating code of ethics and professionalism, the employees and subordinates find it convenient to follow suit. Former chief executive and chairman of Tyco International, Dennis Kozlowski and firm’s CFO ...

A personal budget can be described as an estimate of the anticipated costs, resources and revenues of an individual over a specified period. When used properly, it can be used to estimate the future financial needs and sufficiently cater for the current financial obligations of an individual. A personal budget is a critical contributor to a reasonable financial stability of an individual. When personal budgeting is taken into consideration, it helps an individual to escape any personal financial crisis by ensuring that they spend their income on essential expenses. When prepared objectively, an own budget shows the truth about ...

Introduction

The debt and equity financing are the basic choices of raising money for a company or growing business (Kokemuller, 2016). However, organizations usually have options for seeking debt or equity financing where the option most rely on the source of funding that can be accessed easily by the company, its flow of funds, and the importance of maintaining control of the firm to its principle owner. Therefore, the debt to equity ratio will indicate the figure of the company’s financing that is proportionately given by the debt and equity. This essay illustrates the strengths and weaknesses of debt ...

Articles Summary

The main point in the current article is to develop an attitude towards the savings at the early age. The sources of finance at the early age are very limited and it is very important that the individuals must plan their important needs accordingly. According to the article, the important needs such as higher studies, important assets and the good credit history must have a proper financial plan. The planning must cover all risks, including recessions, inflation and the time value of money. The idea of savings from the early life can help anyone in achieving the goals such ...

Corporate citizenship, or Corporate social responsibility is the way every firm influences on the environmental and social wellbeing. CSR refers not only to the environmental protection groups or social institutions. Every company, large or small is interested in performing CSR. Even though most of the actions do not bring the firm fast financial benefits, still being people oriented is paramount for the business’ success, especially in the innovative market. Based on the company’s approach, there are three main types of CSR defined, namely: (1) Business case model; (2) Social values model; and (3) Syncretic Stewardship model. Thus, CSR ...

The recent Brexit vote has brought about a number if tensions associated with membership in the European Union and a common European economic area. It has also put into serious question the European Project started in the post-World War II era. Please argue for or against Britain being a member of the European Union. Be sure to cover five broad areas of disagreement economics (Benefits/ Costs), political (Benefits/ Costs), Labor market (who wins? Who lose), social (costs/ benefits), and issue ofan identify? Britain a second-largest economy after Germany is a member of the European Union, has taken up a ...

A financial matter is regarded as the knowledge gained about financial management. A financial matter is a general issue related to the one who makes the continuing power of legal representation based on accommodating circumstances of financial matters. It takes account of all lawful matter that speaks about the financial relationships of the principal. I have been studying about financial matters for numerous years to prepare for future at my local university. According to Hedges (2011), a financial matter is like any other knowledge and acts an enduring progression in lives of people. I have also used supplementary tools ...

The chapter under consideration is the Chapter 5, Financial Services: Savings Plans and Payment Accounts. The chapter gives to the reader five important aspects that contribute to the understanding of the personal finances. 1. The first aspect is the selection and use of the available financial services in the market and the factors that influence the decision to select a specific financial service. The selection of the financial service depends on of the needs of the client and the convenience of fees and conditions. One of the financial services is the availability of cash. The cash is the most ...

Credit Risk Management

Commercial Loan Market Commercial loans are debt arrangements agreed upon by the lender (business) and borrower (financial institution) to cover operational costs or fund business projects. During economic downturn, financial institutions are cautious of their lending and consequently import strict regulations that force borrowers to pay a higher interest rate. The agreement between the lender and borrower in the market is documented in a “credit agreement.” In credit risk management, the most important components of the agreement describe the covenants, the security requirements, priority of payments and events of default.

Segmentation of Commercial Loan Market

Financial institutions use credit rating to qualify borrowers based ...

out from the fitted line. Now, tliers that spreads out from the fitted line. Now, in R&D with the symbol s

Executive Summary SunEdison is a renewable energy company. Its revenue comes from semiconductor wafer manufacturing, solar energy business and TerraForm Power (wind power and global business). The company has recently filed for bankruptcy due to poor operational performance and its inability to serve its $11 billion debt. Luckily for the company, first and second lien holders have provided the required capital to continue operation. Overall, the renewable energy market is growing at a very high rate. However, due ...

The main goal of the state at all stages of its development is the stabilization of the economy. At the present time, the state actively uses the tools of intervention in the economy. The main 2 types of state intervention in the market economy include fiscal and monetary policies. Fiscal policy has been a key policy tool in addressing the aggregate demand consequences of the financial crisis in the United States. (Follette & Lutz, 2010)

Objectives of fiscal policy as any stabilization (countercyclical) policies aimed at smoothing cyclical fluctuations in the economy are to ensure:

Stable economic growth; Full employment (primarily a solution to the problem of cyclical unemployment); Stable price level (problem of inflation). (Strauch & Hagen, 2000) Fiscal policy ...

Galaxy International operates in a niche market; this is because skiing is only possible in very specific areas, and only a limited number of the population skis regularly anyway. Despite this, the company has performed outstandingly well to be achieving the level of sales with a small staff. This being said, Galaxy International needs to raise capital quickly and in an efficient way to successfully continue expanding to fully capture its full market size. By offering a unique product that is flexible yet tough, Jeremy is likely to continue to increase the volume of his sales and therefore the ...

2007 Economic Crisis Review

Abstract

This article is an academic review of the economic crisis that struck in 2007 whereby the world economy experienced deep and long prolonged recession with the crisis being considered as the worst to be experienced since the Great Depression . This article largely lies its basis on the U.S experience during that period with the effects, which resulted from the crisis in the overseas markets outlined. Also, the article brings an understanding of some of the conceptual underpinnings of the issues lying at the heart of the economic crisis. The underlying causes of the economic crisis ...

It is important to first examine the question on the value or importance of a college degree from a financial standpoint. Student debt continues to rise as tuition rates have increased to over 400 percent between the years 1982-2007 (London 361). Without adequate financial support or planning, for many individuals college may lead to overwhelming debt that will not be justified by the jobs that they will obtain. Too often students are graduating college only to find themselves employed in positions that did not require a college degree, yet the student loan payments remain a burden that cannot be ...

Sports organizations such as the department of sport and recreation (2016), Sask Sports Inc (2016), and Sport Nova Scotia (2016) are regularly preparing annual reports for each yearly operation. However, Sask (2016) and Nova Scotia (2016) are only presenting their statement of revenue and expenditure while the government of western Australia (2016) presented a full set of financial statements, which includes the statement of financial position. The financial position of the Australian department revealed that the sport organization has a smaller value for their total debt at only AUD$5.41m when compared to the equity of AUD$147.82m (Department, ...

Introduction

Background of the Study The world economy is currently facing numerous challenges, ones that imped growth and continuous economic development. In reality, there is no such thing as a straight line when it comes to economic development, accounting, and asset management. If history is to serve as a basis, economic development, both on a national and international scale, has been and so can be characterized by a cycle of boom and bust . Based on the metrics that both accountants and economics experts look into when analyzing a for-profit organization, a bank, or a macro economy, the risk of being ...

Abstract

The study seeks elaborate on the nonprofit and for-profit hospital joint venture and giving growing similarities in their operation capacities. The growing need for improvement by nonprofit hospitals regarding healthcare delivery requires high capital generation and more funding. Overdependence on sponsors and well-wishers for grants do not support the community benefit fully. This makes nonprofit hospitals not to deliver high quality health care, and unable to settle bills and outsourcing high technology to support medication. The conversion from nonprofit to for-profit hospital, and joint venturing with for-profit hospital help in improving performance, delivery, and high-quality health care. The paper ...

Organizational Chart

There are three types of decision making which are taking place at the different level of organization. At strategic level of decision, an overall picture of accounting information is needed which basically involves financial report such as balance sheets and income statement (Dichev, 2008). At functional level organization-level decisions that carry day to day, operations are taken. At functional level accounting data input and maintenance take place.

Q2. Users and Purpose of Accounting

Solution: Accounting refers to the recording of the transaction which includes the detailed examining of all the budgeting proceedings (Riahi-Belkaoui, 2004). The basic function of accounting is to provide all the information ...

1. The Financial Crisis: Avoidable but Inevitable Theoretically, the financial crisis could have been avoided as investigation findings revealed . Under the circumstances however, the crisis was an inevitable consequence of everything that was going. The Federal inquiry concluded that the 2008 financial crisis could have been avoided. The crisis was the result of “widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street”. It was the result of “greed, ineptitude or both” on the part of government and the private sector. Among the persons found responsible for the crisis included Federal Reserve Chairman Alan Greenspan and, ...

Cosimo di Giovanni de Medici was given the title Pater Patriae of Italy at his death and was also known as the primus inter pares. He was the founder of the Medici dynasty, who were during the Renaissance the de facto rulers of Florence. Even though Cosimo Medici was a powerful man, he was not an official ruler. Medici’s government also consisted of a council who would many times resist the laws that Medici put forth. This paper will look at the accomplishments of Cosimo di Medici. Cosimo di Medici was born on the 10th of April, 1389 ...

Question one: What happens to the value of equity when the value of mortgages decline?

Under the scenario where the price of mortgages decrease, financial institutions such as banks will reduce their investments as well as the lending. Therefore, consumers will experience some difficulties while obtaining home equity loans. For instance, the withdrawal of capital in the United Kingdom put up extra pounds into the economy before the financial crisis. Thus, leading to negative pounds in 2008 (Investopedia). The declining value for mortgages have an adverse effects on the banking industry. It implies that falling mortgages will make financial institutions to lose cash especially when bank’s clients default from their mortgage payments. Consequently, ...

Fed is the US central bank, and it is concerned mainly with managing the circulation of money in the economy (Banks para 1). It supplies the currency to the economy by regulating how the banking systems lend money to the public. Additionally, the Fed receives the deposits from other deposit- taking institutions since it is statutory requirement that the banks maintain a certain deposit with the Fed. This system often known as fractional-reserve system ensures that the banking system has enough cash (liquidity) to meet their financial obligations. The Fed can raise or lower the banking system’s reserve ...

Saudi Arabia is the world's largest exporter or crude oil, with the country exporting 68% the product to the Asian market. The nation enjoys a market share of 40%, enabling the government to fund a significant proportion of the budget from oil revenue. Consequently, Saudi Arabia was able to accumulate vast financial reserves in the years preceding the current low oil-prices when the price per barrel stood at $120 (Baumeister, & Kilian, 2016). However, the state of affairs has changed in the last couple of years following the drastic decline in oil prices. As a result, the country has experienced ...

Relationship between inflation and interest rates

Introduction Predominantly, most economic agents base their decisions on the current and expected changes in the economic conditions. Variations in interest rates have been used as a major variable by most researchers and policy analysts. Additionally, the behavior of interest rates in the economy has been studied since the interest rate is a significant macroeconomic factor to help in the understanding of how it is related to other macroeconomic variables and its impact on the economy. Primarily, interest rates entail the percentage of the loan that lending institutions charge as interest to borrowers, and it is mostly expressed as ...

Discussion Board Posts

Main post starting a thread: “Closing the Wealth Gap: A Review of Racial and Ethnic Inequalities in Homeownership” by Meghan Kuebler Home ownership does not represent an equally realizable goal for all groups in the society, despite the fact that it is a very important investment that may secure a family’s future for generations to come. Although owning a home has been part of the American dream historically, not all groups in the society have had equal access to this privileged position as home owner. In reality, Whites are more likely than any other racial group to own ...

Introduction

Traditionally, research about leadership has laid more emphasis on the traits of a good leader rather than the leadership approach adopted in an organization. It is vital to note that a leader can have all the right characteristics to lead an organization, but the leadership used in the organization could limit their actions. For organizations to be successful, it is vital that the leader or managers be in agreement with the follower/ employees. The agreement between managers and staff is important in creating a conducive work environment with little conflicts and at the same time enhance the implementation of ...

Introduction

One topic of great debate today is the amount of student debt being accrued by college students that, whether, they graduate or not, who leave college with debts from several thousand dollars to hundreds of thousands of dollars. These debts are, most often, federally owned. Student loan debt cannot be eliminated with a bankruptcy and can only be forgiven if the borrower were to die. At least that is how it has always been. However, there are today may people who feel that student debt should be forgiven by the government under of number of applicable circumstances. There are ...

Question 1

(a.) The federal government determines a measure of poverty by comparing pre-tax income with a cost of minimum and standard food diet in the country which is updated annually basing on the Consumer Price Index (CPI). Professionals have defined absolute poverty with the emphasis on the monetary aspect of it. As such, according to the government Absolute poverty refers to a situation where a person's financial ability is insufficient to maintain the minimum standard of living (Bogenschneider, 2014). With the increase in scrutiny on social welfare issues, experts find several drawbacks on the government guidelines used to define absolute ...