LIMITATIONS OF RATIO ANALYSIS The debt-equity ratio gives an indication of an enterprise’s ability to sustain losses without jeopardizing the interests of creditors. This ratio is based only on information provided in the balance sheet. Although stockholders’ equity serves as a buffer to protect the creditors’ interests‚ it should be kept in mind that the earning prospects of the enterprise are also relevant in judging a firm’s ability to survive the long run. Although the use of ratios can prove
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PERMBAJTJA: 1. Cfare eshte Fondi Monetar Nderkombetar?..............................................................................2 2. Pak Histori per FMN…………………………………………………………………………..2 3. Fakte per FMN………………………………………………………………………………...2 4. Organizimi dhe Qellimi………………………………………………………………………..3 5. Kush e drejton FMN?................................................................................................................4 6. Cfare ben FMN?..........................
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How monetary policy can raise the level of aggregate demand in the short run. Introduction Monetary policy is the process by which the monetary authority of a country controls the supply of money‚ usually targeting a rate of the interest for the purpose of promoting economic grown and stability. ( Wikipedia ) In the short run‚ monetary policy affects the lever of output as its compositions can also affects the lever of output. An increase in money leads to a decrease in interest rates and
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The Monetary‚ Fiscal and External Trade Policy in face of the Global Slowdown: The Indian Context The global economic outlook deteriorated sharply over the last quarter. In a sign of the ferocity of the down turn‚ the IMF made a marked downward revision of its estimate for global growth in 2009 in purchasing power parity terms – from its forecast of 3.0 per cent made in October 2008 to 0.5 per cent in January 2009. In market exchange rate terms‚ the downturn is sharper – global GDP is projected
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there were limitations to its sucess. Once the victory had been achieved against the Whites in 1921‚ Lenin began to focus on rebuilding the Russian economy as war communism had caused industrial and agricultural production to decrease. The decrease in agriculutrual produce had been a particular problem as it resulted in a fame. Moreover‚ the Kronstadt rising made Lenin aware that war communism was not truly working as the Kronstadt sailors had initially supported the Bolshevik policies but now they
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1‚ new media technologies may have little impact on politics‚ even change politics for the worse. It has little effect on civic engagement. New media technologies increased political knowledge among citizens already interested in politics‚ for users who are not‚ public sphere online is meaningless. Social media activists are more democratic‚ more knowledgeable about current political events and also somewhat more understanding of anti-government sentiment. As the new media technologies provide a
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Introduction There are a number of factors that can contribute to the growth of a population and these trends can be seen in a number of species. It is generally believed‚ from an ecological perspective‚ that populations will display either an exponential of logistic growth rate. If optimal environments are consistently maintained with no biotic or abiotic limiting factors (excess food‚ excess space availability‚ optimum climactic environment‚ no predation‚ etc) then a population will grow in
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D61/65721/2013 TSISAGA MERCY ALEYO D61/69599/2013 ANNE GICHIU D61/65838/2013 OWIDI GABRIEL ODONGO D61/68108/2013 JAMILLAH KHAVAYI D61/69241/2013 SEMESTER: MAY TO AUGUST 2014. TASK: FINANCIAL MARKETS AND MACROECONOMIC POLICY II FINANCIAL INNOVATION AND MONETARY POLICY FINANCIAL INNOVATIONS Innovation is the introduction of a new product to a market or the production of an existing one in a new manner. Financial innovations occur because market participants are constantly searching for new
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A Literature Review of European Central Bank’s Monetary Policy FIN11128 Introduction The European Central Bank (ECB) was established in June 1998‚ as the core of European System of Central Banks (ESCB)‚ ECB formally centralized the European monetary policies since January 1999. This new monetary authority is quite different from any traditional sovereign central banks‚ for its operational independence and its independence from political interference are guaranteed by the
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As the result of the ratio analysis. There are 5 limitations of ratio analysis as well. The first limitation of the ratio analysis is Comparing the ratios between two organizations/firms is a smooth path to do it. This is because‚ different organization/firms might have face unequal figures of earnings‚ losses. In addition‚ fact is the two difference organizations/firms might have different economic environment or production technologies even though they produce the same range of the product. For
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