Definition An economic condition marked by the fact that individuals actively seeking jobs remain unhired. Unemployment is expressed as a percentage of the total available work force. The level of unemployment varies with economic conditions and other circumstances. Unemployment describes the state of a worker who is able and willing to take work but cannot find it. As indicated by the unemployment rate and other yardsticks‚ unemployment is an important measure of the economy’s strength. A high
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Discuss the effectiveness of using interest rates to control the rate of inflation. In 1997 the Bank of England was given independence over monetary policy in the UK. It was given the role of setting interest rates on a monthly basis for the purpose of achieving an inflation target of 2% (+/-1%) as measured by the CPI. The diagram above shows a short run aggregate supply curve and how an increase in interest rates may affect it. If the change is successful consumption‚ investment‚ and exports
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and Financial Markets? 1) Financial markets promote economic efficiency by A) channeling funds from investors to savers. B) creating inflation. C) channeling funds from savers to investors. D) reducing investment. 2) Well-functioning financial markets promote A) inflation. B) deflation. C) unemployment. D) growth. 3) The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of $100 per year) is commonly referred to as the A) inflation rate
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Interest Rate Risk (IRR) Management What is Interest Rate Risk : Interest rate risk is the risk where changes in market interest rates might adversely affect a bank’s financial condition. The management of Interest Rate Risk should be one of the critical components of market risk management in banks. The regulatory restrictions in the past had greatly reduced many of the risks in the banking system. Deregulation of interest rates has‚ however‚ exposed them to the adverse impacts of interest rate
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EFFECT OF INTEREST RATE ON FOREIGHN EXCHANGE RATE (EVIDENCE FROM ASIAN REGION) ABSTRACT: In this article we investigate the impact of a change in U.S. short term interest rates relative to those in some Asian countries like Bangladesh‚ Thailand‚ Japan‚ Pakistan‚ and China on the bilateral foreign exchange rates between the U.S dollar and each country’s currency. Several factors determine the exchange rate of a country. A higher currency makes a country’s exports more expensive and imports cheaper
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Supervision of Interest Rate Risk Supporting Document to the New Basel Capital Accord Issued for comment by 31 May 2001 January 2001 Superseded document Superseded document Table of contents SUMMARY .............................................................................................................................................. 1 I. SOURCES AND EFFECTS OF INTEREST RATE RISK ............................................................. 5 A. SOURCES OF INTEREST RATE RISK
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Course. ECONOMIC ANALYSIS (522) Level MBA Course Code 522 Name of Student ZAFFAR ABBAS Roll No AH505861 Semester spring 2012 Topic Assigned: Discuss the current rate of inflation in Pakistan and its impact upon business sector. Topic: Discuss the current rate of inflation in Pakistan and its impact upon business sector INFLATION ` Inflation means a rise in prices
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(A) Do you think you are addicted to Facebook? What are the signs which show a person is addicted to Facebook? Give reasons to support your view. Yes I am addicted to Facebook. The signs that shows a person that is addicted to Facebook is when he/she is constantly thinking about Facebook‚ like always updating his/hers statuses‚ always talk about the topics that he/she saw from Facebook or constantly checking his/her phone for Facebook updates. Another sign of Facebook addiction is when he/she
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Solution to Problem Set 1 1. You are considering various retirement plans. Your goal is to have a lump sum of $3‚000‚000 available (‘in the bank’) when you retire at age 67. The various plans‚ with their payment schedules‚ are listed below. In each case‚ calculate the payment(s) that must be made into the plan to ensure that you have the $3‚000‚000 available. For each plan‚ you may assume that your opportunity cost of funds is 6% per year; for each plan‚ you may assume that the phrase “at age
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teacher should make learning enjoyable and fun. This change will bring lots of benefit to the process of learning in a class. It will make students to get more knowledge from what is being taugh ‚ start interaction in class room and having more interest in the subject matter.Therefore‚ it is important for teachers to do all they can to help student have fun while learning in the class. First of all‚ teachers must have energy to create the learning environment.If a teacher does not enjoy a subject
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