Free Essays on Borrowing to Get Inspired & Learn by Example

Overview

Government refers to a financial document that the government uses to estimate the expected revenue from taxes and other investments as well as the expected expenses that the government would incur during the year. The document serves the basis for the government to match the government’s investment plans as well assist in developing policies that would safeguard the country’s economy from unforeseen events. There are three categories of a state budget that include a surplus, balanced or a deficit budget. Due to the unexpected nature of the economy, the government may be prompted to replenish estimated budget Continue reading...

The US and global economies are only just recovering from the worst effects of the 2007/8 global economic crisis, which was the single biggest such crisis since the Great Depression. The crisis was caused by predatory sub-prime mortgage lending, inadequate regulation and unsustainable credit expansion due to the emergence of securitized banking. The US has yet another crisis on its hand, which could potentially have a similar effect on the country and the global economy. Student loans reached more $1 trillion August 2013, owed by about 40 million graduates, which means that they comprise the biggest proportion of the Continue reading...

Introduction

Macroeconomics is the study of the aggregate economy (Kennedy, 2000). It involves the study of variables which affect the whole economy. These variables include Gross Domestic Product (GDP), growth rate, unemployment, inflation, international trade, business cycle and demographic characteristics. The study of these variables helps in understanding the structure and composition of the whole economy in order to make rational decisions which can help the economy grow during the various business stages. This is done through the use of macroeconomic models in analysing the variables data. Each of the macroeconomic variables is an indicator of the level of an Continue reading...

Introduction

The financial crisis of 2008 has ignited talks about the role securitization in the economy, which was once a latent subject. The recessionary impact felt in many countries during this period witnessed the collapse of banks, loans getting bad on large scale and owners of securitized securities taking a big hit. This leads to the debate on the effectiveness and limitations of the securitization process on the economic growth of a nation. The paper aims to discuss the role of securitization in the economy.
The paper is divided into five sections. The first section attempts to understand the meaning Continue reading...

High-Interest Rates

Every investor would like to earn big returns on his or her investments. High-interest rates normally yield high returns and would normally attract most investors. However, high-interest rates are associated with high-risk investments (Bekaert & Hodrick, 2009). Such investments would require risk-averse investors who need extra incentive to take the high risks. One of the advantages of high-interest rates is that investors will not have to seek volatile investment opportunities in order to reap big. In other words, general high-interest rate in the market reduces the market's volatility for the investors. They do not have to take high risks in Continue reading...

Management of Working Capital Case Study: "George's Trains".

Introduction
George’s Train Shop is a family-owned firm that sells and repairs model trains. Currently, the business is profitable but the owner needs advice on his working capital management strategies. Working capital management involves inventory management, management of debtors and creditors, management of cash, among other elements. The strategies have a direct effect on the current and future profitability. This paper analyzes the working capital management practices of George, his capital budgeting techniques. In addition, it explores the limitations of investment appraisal techniques. Finally, the paper develops a simple cash flow statement for the business and examines measures Continue reading...

Banking is one of the biggest industries worldwide. The efficiency of the banking sector determines economic growth of a country. Banks serves as a medium of transferring funds from lenders to the borrowers; the medium in which these funds are invested determines the social risk of a client. In Portugal, private clients account for 55.6% of the total credit given by the banks.
After nationalization of banks in Portugal in 1975, Bank of Portugal was the head bank. Recession soon crept in the economy and to tackle it in 1990 restructuring started with the Financial Investment. The Spanish influence Continue reading...

The 2007-2008 economic and financial crisis was the worst and greatest to grip United States since the 1930' Great Depression. The crisis resulted in 26 million Americans losing their jobs or unable to find permanent employment or just not ready to engage in job hunting because of the gloomy employment prospects (Angelides et al, 15). Moreover, 4 million Americans lost the ownership of their homes due to foreclosure and about 4.5 million others reneged on their mortgage payments thus fell in the foreclosure process. The amount of wealth that households lost totaled to about $11 trillion with savings and Continue reading...

Effects of increase in interest rates on consumer financing for big tickets

Increased rates of interests have effects on consumer spending decisions regarding the big tickets items such as the automobiles. When the rates of interests are high, there is an overall increase in demand for goods and services. For the case of automobile industry, it signifies that consumers have a relatively increased demand for cars. Due to the excess demand for the cars, the supply fails to meet the demand. Consequently, the prices of the cars go up (Lieberman, 2013). The problem associated with this is that excess demand in addition to increased interest rates is an indicator of an Continue reading...

The article that we would analyze and evaluate in this study came from Bloomberg. We would discuss general economic principles and particular macroeconomic indices and its relation to the national circumstances that are featured in the chosen article. From here, we would come up with a fitting evaluation, decisions, and forecasts.
David Biller (2015) of Bloomberg Business covered the economic growth outlook of Brazil for the year, according to its analysts. Despite being the world’s second-largest emerging economy, its analysts lowered its growth outlook. Meanwhile, the projection for consumer price would increase. This has been the statement for Continue reading...