Are considered are considered in isolation from the rest of the economy. • Macroeconomics – is concerned with the economy as a whole. An overall view of the economy and aggregate economic behavior is studied. Emphasis on topic such as total production‚ income and expenditure‚ economic growth‚ aggregate unemployment‚ inflation etc is studied. • The problem of economizing is essentially one of deciding how to make the best use of limited resources to satisfy unlimited want • Opportunity
Premium Supply and demand Economics
Goodrich-Rabobank Interest Rate Swap In 1983‚ both B.F. Goodrich and Rabobank needed to execute external financing in order to raise 50 million dollars for ongoing operations. Goodrich wanted to raise the money through debt financing‚ but because their bonds were BBB- rated‚ they would have to pay a steep interest rate for a fixed rate. However‚ the Solomon brothers had an idea. Goodrich could borrow with a floating rate that was tied to LIBOR and then swap interest payments with a Euromarket
Premium Money Bond Investment
Macroeconomics (from Greek prefix "makros-" meaning "large" + "economics") is a branch of economics dealing with the performance‚ structure‚ behavior‚ and decision-making of an economy as a whole‚ rather than individual markets. This includes national‚ regional‚ and global economies.[1][2] With microeconomics‚ macroeconomics is one of the two most general fields in economics. Macroeconomists study aggregated indicators such as GDP‚ unemployment rates‚ and price indices to understand how the whole economy
Premium Gross domestic product Economics Macroeconomics
Module 03 Written Assignment - GDP and Growth According to (McEachern‚ 2012) to calculate Gross Domestic Product (GDP) by the following four main categories: 1. Consumer Consumption – household purchases of final goods and services. 2. Gross Investment – purchase of new plants‚ equipment‚ buildings‚ residences and net worth of inventories. 3. Government Spending – the value of consumption and gross investment of goods and services. 4. Net Exports – value of U.S. exports of goods and services
Premium Macroeconomics Gross domestic product United States
1) A $100 deposit today that earns an annual interest rate of 10% is worth how much at the end of two years? Assume all interest received at the end of the first year is reinvested the second year. 2) An investment of $100 today is worth $116.64 at the end of two years if it earns an annual interest rate of 8%. How much interest is earned in the first year and how much in the second year of this investment? 3) Which of the following investments has a larger future value? A $100 investment
Premium Money Investment Bond
since then‚ relations between the two sides went into the framework‚ developed rapidly in both width and depth. EU to become one of the most important partner of Vietnam in many fields‚ especially economic‚ trade‚ investment‚ contribute positively to the process of economic development - social and economic integration Vietnam ’s international. Since the establishment of diplomatic relations‚ the Vietnam - EU has grown rapidly in terms of both breadth and depth. The dynamic development poses requirements
Premium European Union
bond in August for a period of 6 months. Zero-coupon bond of similar quality is currently yielding 4%‚ a cost‚ which the treasurer finds acceptabl(e) The treasurer is of the view that interest rate will rise before the company will issue the debt‚ hence will increase the cost of debt. So to hedge the interest rate risk the treasurer decided to hedge the risk using September Eurodollar futures contract. September 90-day Eurodollar futures contracts are currently trading at 96.25. You are required
Premium Futures contract Bond Hedge
What is the rule of 72? Well… here’s the equation: Years to double = 72 / Interest rate DO NOT reread this equation. The rule of 72 is a hard rule to explain. I will do my best to try to explain it. The answer to ‘rule of 72’ gives us a number of years. This number of years tells us how long it takes to double our money. Let’s say you have 100 dollar. The ‘rule of 72’ helps us figure out how long it will take to have 200 dollars. Scenario 1: You have invested your 100 dollars in a 3%
Premium Investment
fixed exchange rate system that fixes the exchange rate of Hong Kong Dollar and United State Dollar to a ratio of 7.8: 1 Hong Kong Monetary Authority does not need to stable exchange market by controlling the supply and demand of HKD. It can be stabilized by Fixed-linkage System. In the past 15 years‚ Hong Kong interest rates and exchange rates fluctuated in the same trend of the US interest rate and exchange rate. The graphs below show an example of interest rate and exchange rate respectively:
Premium United States dollar Inflation Stock market
HW 1 International Economics‚ ECON 630 Due on Wednesday‚ July 2 @ 11:00pm PT (Total 50 points) 1. Why did the Mercantilists consider holdings of precious metals so important to nation-state building? (6 points) Wealth was viewed as synonymous with holdings of precious metals. Nation-states wished to become wealthy and this meant obtaining large holdings of precious metals. It is also argued by some that the shortage of coinage constrained the growth of these nation-sates and that precious
Premium International trade Economics United States