LABUAN SCHOOL OF INTERNATIONAL BUSINESS AND FINANCE UNIVERSITI MALAYSIA SABAH LABUAN INTERNATIONAL CAMPUS GB30703 INTERNATIONAL MONEY AND CAPITAL MARKETS INTEREST RATE AND EXCHANGE RATE POLICIES SEMESTER 1‚ 2013/2014 PREPARED TO: MR. RICKY CHIA CHEE JIUN PREPARED BY: NO. NAME MATRIC NO. HP. NO. 1 MUHAMMAD RIDZWAN BIN ABD RAHMAN BG11110337 013-6604707 SUBMISSION DATE: 10th DECEMBER 2013 Table of Contents LIST OF ABBREVIATIONS ADF
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Effects of Raising Interest Rates If a central bank increases the base rate‚ this tends to increase all major interest rates in the economy. This means interest rates for both savers and borrowers will increase. Higher interest rates will have various economic effects: 1. Increases the cost of borrowing. Interest payments on credit cards and loans will be more expensive. Therefore this discourages people from borrowing and saving. People who already have loans will have less disposable income
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Kinetics 6.1 Rates of reaction 6.2 Collision theory 6 16.1 Rate Expression (AHL) 16.2 Reaction mechanism (AHL) 16.3 Activation energy (AHL) 6.1 Rates of reaction 6.1.1 Define the term rate of reaction. 6.1.2 Describe suitable experimental procedures for measuring rates of reactions. 6.1.3 Analyse data from rate experiments. © IBO 2007 Figure 601 An explosion is a quick reaction D ifferent chemical reactions occur at different rates (i.e. speeds). Some
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Mortality rate is a measure of the number of deaths (in general‚ or due to a specific cause) in a population‚ scaled to the size of that population‚ per unit of time. Mortality rate is typically expressed in units of deaths per 1000 individuals per year; thus‚ a mortality rate of 9.5 (out of 1000) in a population of 1‚000 would mean 9.5 deaths per year in that entire population‚ or 0.95% out of the total. It is distinct from morbidity rate‚ which refers to the number of individuals in poor health
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RATE OF REACTIONS. The reaction rate (rate of reaction) or speed of reaction for a reactant or product in a particular reaction is intuitively defined as how fast or slow a reaction takes place. For example‚ the oxidative rusting of iron under the atmosphere is a slow reaction that can take many years‚ but the combustion of cellulose in a fire is a reaction that takes place in fractions of a second (right). Chemical kinetics is the part of physical chemistry that studies reaction rates. The concepts
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5.0 Contents 8 5.1 Factor That Effect Exchange Rates in Long Run 8 5.2 Exchange rates in short run (A supply and demand Analysis) 10 5.3 Factor that determinant exchange rate 11 5.3.1 Shift the demand for domestic assets 11 5.4 Other Factors that effects exchange rates and its volatility 12 5.4.1 International financial crises 12 5.4.2 Speculators effect 12 5.4.3 Central bank intervention policy 13 5.2 The effects of exchange rate and volatility 14 5.2.1 International trade‚ export
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The society as a whole is worse off. This is because cash is the financial asset and it becomes is a liability of the government upon the time you found the cash. So‚ the taxpayers will have to make up for the government liability. 2. The average rate of return on investment in large stocks has outpaced that on investments in T-Bills by about 8% since 1926 in US. Why‚ then‚ does anyone invest in T-Bills? Answer: This is because T-bill is regarded as an almost risk free asset as it is backed
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exchange rates‚ which is useful for international finance assignment. Exchange Rate is the price of one country’s currency in terms of another country’s currency; the rate at which two currencies are traded for another. It measures the number of units of one currency which exchange‚ in the foreign exchange market for one unit of another. Exchange rates are important because‚ they establish the relationships between the different currencies or monetary units of the world. Exchange rates have been
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Interest Rates An interest rate is the rate at which interest is paid by borrowers for the use of money that they borrow from a lender. Specifically‚ the interest rate is a percent of principal paid a certain amount of times per period. Small companies often borrow capital from banks to buy new assets for its business‚ and in return the lender receives interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower. Interest rates are
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’Exchange Rate’ The price of a nation’s currency in terms of another currency. An exchange rate thus has two components‚ the domestic currency and a foreign currency‚ and can be quoted either directly or indirectly. In a direct quotation‚ the price of a unit of foreign currency is expressed in terms of the domestic currency. In an indirect quotation‚ the price of a unit of domestic currency is expressed in terms of the foreign currency. An exchange rate that does not have the domestic currency
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