Treasury Bonds‚ Notes‚ Bills: * Bond: 10 years or more * Note: 1 - 10 years * Bill: less than 1 year * Are they risk free? * Yes: US gov’t has largest army and will take stuff to pay its bills * No: Interest rate risk‚ and Inflation Risk * Overall: not risk free‚ but are default risk free Need to value a bond: 1. Coupon 1. Annuity‚ fixed for some period of time 1. Principal Will ask to value separately * If interest rates increase‚ value of bond
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Chapter 1 Why Study Money‚ Banking‚ and Financial Markets? Multiple Choice )1 Financial markets and institutions ()a involve the movement of huge flows of money. ()b affect the profits of businesses. ()c affect the types of goods and services produced in an economy. ()d do each of the above. ()e do only (a) and (b) of the above. Answer: Question Status: Previous Edition )2 Financial markets and institutions ()f involve the movement of huge flows of money. ()g affect the location
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Power is Money; Money is Power Power is money and money is power. There are many more examples of this now than anytime in the past. One of the most obvious examples is politics. Ross Perot was an unkown multimillionaire and his money is the only reason that he made it into the presidential election. If a man who earned a standard salary wanted to run for president‚ he would have almost no chance at all unless he was backed by people with money. Every four years when the U.S. Presidential
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THE ROLE AND USES OF MONEY The classical economists were of the view that money was discovered to remove the defects of barter. The important functions of money for them were to serve as a medium of exchange and standard of material. They examined in detail the characteristics of a good money material and the forces which operate in determining the value of money. The classical economists were of the view that the volume of output‚ the quantity and quality of the goods to be consumed‚ the volume
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Monetary policy and inflation in Thailand By Virinrat Sitithanasart 5445902329 Presented to Mr. Chawaruth Musigchai In fulfillment for the course 2952341 Course: Economics of money and financial markets Bachelor of Art in Economics (EBA) of Chulalongkorn University‚ Bangkok‚ Thailand. Background on monetary policy in Thailand Monetary Policy Transmission Mechanism I investment ‚ Consumption Domestic Monetary policy) M YD P ฿ Export ‚ Import
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THE IMPORTANCE OF MONEY In this topic we will be studying and describing the fundamental role that money plays in facilitating exchange and‚ thereby‚ allowing for specialization. Why Specialization? Then you need to think about it: why money leads to specialization? why an economy needs to use money at all . We may also discuss on the disadvantages of barter. The other thing that need to be focused on is measurement of money. Why we have different type of measurement of money supply? What is
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Essay: Discuss the measurement of the money supply in the U.S. measured? There are several definitions of the supply of money.M1 is narrowest and most commonly used. It includes all currency (notes and coins) in circulation‚ all checkable deposits held at banks (bank money)‚ and all traveler’s checks. A somewhat broader measure of the supply of money is M2‚ which includes all of M1 plus savings and time deposits held at banks. An even broader measure of the money supply is M3‚ which includes all of
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List of Illustration Figure 1: Malaysia Inflation Rate Chart Figure 2: Malaysia Interest Rate Chart Figure 3: Malaysia’s Budget Operational Expenditure 1998-2009 Chart Figure 4: Malaysia Corporate and Personal Income Tax Rate Trend Abstract The inflation rate in Malaysia has last reported 3.3 in May of 2011. Although this rate is not quite high but the government must to control before it continue rising because in many other countries‚ the inflation has brought a lot of troubles and become
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Causes of Inflation in the Iranian Economy Hamed Armesh*‚ Habibollah Salarzehi**‚ Noor Mohammad Yaghoobi***‚ Alireza Heydari**** It is clear that in the nearly last four decades inflation is one of the important problems of Iranian economy. In this study‚ we determine and analyze the effective factors on inflation in the Islamic Republic of Iran. After briefly reviewing the theoretical background‚ we use econometric method‚ such as the Ordinary Least Squares (OLS)‚ to study causes of inflation Iran
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Spend money or save money? Some people say that it is better to enjoy your money as soon as you earn it‚ while others prefer to save money for their further life. It is really a difficult choice faced by lots of people‚ because of the different attitudes they hold towards money. As far as I am concerned‚ I vote for the former choice‚ which is that it is better for one to enjoy his or her money as soon as it is earned‚ because of these following reasons. First‚ since no one knows what will happen
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