family member better than a stranger‚ you know more about the borrower’s honesty‚ propensity for risk taking‚ and other traits. There is less asymmetric information than with a stranger and less likelihood of an adverse selection problem‚ with the result that you are more likely to lend to the family member. 2. If mortgage rates rise from 5% to 10%‚ but the expected rate of increase in housing prices rises from 2% to 9%‚ are people more likely or less likely to buy houses? Explain you answer.
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allows us to give more informed and accurate information‚ and from there we can better guide the owners of “Montego Bay Apartments”. The creation of the spreadsheet allowed the owner‚ Miranda Ho‚ to process data easily compared to her previous system of manually recording bookings based on when they were received. The recording of details manually compared to a spreadsheet is far less efficient as
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Free Market Economy The free market is an economic system where the state only intervenes to collect taxes‚ enforce contracts and private ownership. This means the government in countries with a free market economy does not set the price for goods and services. Instead‚ suppliers fix prices using the forces of supply and demand from consumers to gauge their worth. The government’s intervention can become necessary in some spheres. For example‚ many developed countries with a free market economy
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FINANCIAL SYSTEMS A financial system is a set of complex and closely interconnected financial institutions‚ markets‚ instruments‚ services‚ practices and transactions. It consists of institutional units and markets that interact‚ typically in a complex manner‚ for the purpose moblising funds for investment and providing facilities‚ including payments systems‚ for the financing of commercial activity. Financial systems are crucial to the allocation of resources in a modern economy. They channel
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Mohammed Talukder ILRS504 February 14‚ 2010 Wk5 Essay Assignment- Three Ideologies of Political Economy Global power is understood to be both economic and political‚ which are interrelated in a complex manner. Thus the International Political Economy (IPE) has become a discipline within the social sciences that analyzes international relations in combination with political economy. IPE is considered flexible and contains epistemologies that are subject of robust debate. At the core of the debate
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for ecotourism 4 2009‚ still in the pursue of “Green Gabon” 15 Why does Gabon need ecotourism ? 8 Bibliography 16 The ecologic bet of 2002… 10 Fatima Soleman Ecotourism‚ an opportunity for Gabon? African Political Economy May 8th Professor Markovits Secondary Story Headline Final Project With its 800 kilometers of coastline‚ its 13 national parks which are home to species unique to Gabon and more than 400‚000 years of archaeological and cultural
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POLITICAL SYSTEMS Presidential systems executive power = president legislative power = unicameral or bicameral parliament both have legitimacy derived from people USA president is the only executive‚ the only one responsible president is also the prime minister and the lead symbol of the state president cannot dissolve (rozpustit) parliament parliament cannot dismiss president (only impeachment) system of checks and balances – limits of powers – absolute separation of powers Hard to
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Media System Dependency Theory Dependency theory‚ or media system dependency theory‚ was proposed originally by Sandra Ball-Rokeach and Melvin DeFleur (Dependency Theory‚ 2012). The core assumption of the theory suggests an essential relationship between audiences‚ media and the larger social system (Dependency Theory‚ 2012). It attempts to explain that the individual use of media is a goal oriented activity and the overall intensity of the dependency relationship between individual and media
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Financial Institutions and Markets 2.1 Outline the roles of the various monetary authorities that regulate the Australian financial system. What is the role of Council of Financial Regulators? In Australia‚ the role of monetary authorities is split between three independent statutory agencies with specific responsibilities in the Australian financial sector: 1. The Reserve Bank of Australia (RBA)‚ Australia’s central bank‚ is responsible for monetary policy‚ systemic stability and the payments
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FINANCIAL MARKET: Mechanism that allows people to buy and sell financial securities(such as stock and bonds) and items of value at low transaction cost. Market works by placing many interested buyer and seller in one ‘place’‚ thus making easier for them to find each other. PURPOSES: Financial market facilitate; 1. Raising of capital 2. Transfer of risk 3. International trade HOW FINANCIAL MARKET WORKS: Borrower: issue a receipt to lender promising to payback the
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