Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
For example, if spending is encouraged, in the form of lower interest rates, then inflation is likely to grow, at least in the short-term, before the government has a chance to regulate this problem and move interest rates in a different direction. With higher inflation, the purchasing power of the individuals is affected, which might, in turn, lead to a decrease in aggregate demand over time.
At the same time, interest rates are also important because of the impact they can have on other rates, such as the currency exchange rate. If the Central Bank increases the interest rate, then investors may move towards that particular currency that offers a higher return on their investment (due to the higher interest rate). They may decide to sell the currency or currencies they are investing in at the present time in order to move towards this more profitable currency.
The fact that the financial markets (and economies in general) are globalized means that the effects of any national changes, such as the...
This also means that the importance of interest rates in the economy is amplified.
Bibliography
1. Piana, Valentino. 2002. Interest rates. Economics Web Institute. On the Internet at http://www.economicswebinstitute.org/glossary/interest.htm. Last retrieved on February 20, 2013
2. The Importance of Interest Rates. On the Internet at https://www.woodgundy.cibc.com/wg/reference-library/topics/investment-solutions/fixed-income/importance-of-interest-rates.html. Last retrieved on February 20, 2013
Piana, Valentino. 2002. Interest rates. Economics Web Institute. On the Internet at http://www.economicswebinstitute.org/glossary/interest.htm. Last retrieved on February 20, 2013
The Importance of Interest Rates. On the Internet at https://www.woodgundy.cibc.com/wg/reference-library/topics/investment-solutions/fixed-income/importance-of-interest-rates.html. Last retrieved on February 20, 2013
Bibliography
1. Piana, Valentino. 2002. Interest rates. Economics Web Institute. On the Internet at http://www.economicswebinstitute.org/glossary/interest.htm. Last retrieved on February 20, 2013
2. The Importance of Interest Rates. On the Internet at https://www.woodgundy.cibc.com/wg/reference-library/topics/investment-solutions/fixed-income/importance-of-interest-rates.html. Last retrieved on February 20, 2013
Piana, Valentino. 2002. Interest rates. Economics Web Institute. On the Internet at http://www.economicswebinstitute.org/glossary/interest.htm. Last retrieved on February 20, 2013
The Importance of Interest Rates. On the Internet at https://www.woodgundy.cibc.com/wg/reference-library/topics/investment-solutions/fixed-income/importance-of-interest-rates.html. Last retrieved on February 20, 2013
Financial Management of Not-For-Profit Organizations: Generally, financial management of not-for-profit organizations is similar to the process of financial management in the profit making sector in several aspects. Nonetheless, there are several major differences that contribute to a different focus of a not-for-profit financial manager. In the commercial sector, the for-profit enterprises mainly focus on capitalizing shareholder value and overall profitability. On the contrary, not-for-profit organizations have the basic aim of providing
Financial Management Fundamental Decisions in Financial Management In financial management, there are three fundamental decisions, which are central to capital budgeting, capital structure and working capital management. Capital budgeting refers to the process of planning and managing the company's long-term investments. Capital structure refers to the particular mixture of long-term debt and equity a company utilizes to fund its functions. Working capital management refers to the company's short-term assets, which may include
Financial Scandals and Management Financial Management Management Financial Actions, Controls, and Decisions Financial Scandals and Management Following the rise of financial scandals in the recent past, external and internal audits are carried out to review the management's financial controls and actions, and keep tab of the outside and internal auditors. However, despite the best efforts, accounting scandals like the Cendant Corporation's $300 million bogus revenue indicate that external auditors and managers are not doing
The financial information these directors and managers require is often highly specific to their functional departments' goals and objectives. The director or senior manager of the operations and production departments will require variance analysis of costing, thorough analysis of supply chain costs and the cost of quality management and compliance management (Kivijarvi, Saarinen, 1995). These costs are critical to each of these directors ensuring a consistent level of conformance
(2009). Google's Big IPO, Five Years Later. [Article]. Wall Street Journal - Eastern Edition, 254(40), C3. Davis, H.Z., & Peles, Y.C. (1993). Measuring Equilibrating Forces of Financial Ratios. The Accounting Review, 68(4), 725-747. Google Inc. (2012). 2011 Annual Report. Mountain View, CA: Google Inc. Kirby, J. (2009). How Google really does it. (Cover story). [Article]. Canadian Business, 82(18), 54-58. Lee, M.-j. (2010). Measuring the Usage Effects of Tying a Messenger to Windows: A
Financial Management for Nurses The modern healthcare industry is extremely labor intensive. To be effective, a modern nurse manager must balance patient care vs. staffing, procedures vs. patient load, and fiscal budgets in line with appropriate levels of care. Nurses are expected not only to understand the organization's fiscal concerns, but to manage them as well. While fiscal dollars spent on human resource management are the larger portion of the health