This paper is to employ a vector autoregressive model to investigate the impact of stock market and saving rate on GDP growth. The result indicates that the lagged values of both stock index and saving rate don’t have influence on the current value of GDP. However‚ we find that the lagged value of stock index does have impact on saving rate. We conclude that one of the most important reason lead to this result should due to small sample size and data of saving rate still remains non-stationary under
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What factors are behind stock market fluctuations and how do they impact? Which have the most significant impact‚ and why? Stock market has been greatly developed in recent years; stocks have been one of the most important tools of investment. Considering how popular stock market it is‚ the fluctuation of stock market has increasingly significant affect on properties of both companies and individuals. As a result‚ the fluctuations gradually became the overarching concern for a majority of individuals
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Chapter 07 Foreign Currency Transactions and Hedging Foreign Exchange Risk Multiple Choice Questions 1. According to the World Trade Organization‚ what was the size of international trade in 2008? A) $7‚000‚000‚000 (7 billion dollars) B) $70‚000‚000‚000 (70 billion dollars) C) $37‚000‚000‚000 (37 billion dollars) D) $16‚000‚000‚000‚000 (16 trillion dollars) Answer: D Level: Easy LO: 1 2. In the years between 1990 and
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financial risks in particular foreign currency risk since the borrowings were mostly denominated in foreign currencies. This high borrowing had resulted in an unstable credit ratings made by domestic and international rating agencies which might affect the perception of local and foreign investors as well as the financial institutions towards the company. In addition‚ single customer limit was also one of the reasons why TNB had to commit foreign currencies borrowing. Other main constraints included
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The banking industry in the emerging market economies: competition‚ consolidation and systemic stability - an overview John Hawkins and Dubravko Mihaljek I. 2. Introduction ........................................................................................................................... Forces for change ................................................................................................................. Deregulation and opening-up to foreign competition ...................
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services Currency risks The sale of vehicles outside the eurozone gives rise to exchange risks. The BMW Group’s currency risk in 2012 was dominated by the US dollar‚ the Chinese renminbi‚ the British pound‚ the Russian rouble and the Japanese yen. Foreign currency risks are determined for forecast exposures measured using cash flow-at-risk models and scenario analyses. Operational currency management is based on the results provided by these tools. The BMW Group manages currency risks both at
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The 1929 stock market crash affected mainly people in Canada and the US when share prices on the New York Stock Exchange completely collapsed and Stocks lost 13% of their value‚ and in 1932 and 1933 they went‚ down about 80% from their highest value. So whoever invested in stocks lost all their money‚ and it was considered the beginning of the Great Depression. By the end of the stock market crash‚ $16 billion had been lost from New York stocks. In addition‚ many banks had invested their deposits
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contrast foreign currency futures and options. Identify situations where you may choose one or the other. When Barings Bank‚ the oldest merchant bank in London‚ collapsed in 1995 after one of the bank’s employees lost £827 million due to speculative investing‚ primarily in futures contracts‚ it illustrated the extreme danger and volatility of derivatives. Options and futures can be used to eliminate‚ reduce‚ hedge and manage risk‚ but can also be highly speculative. Foreign currency futures are
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BANKING TERMS PAGE-1 The basic banking terms are frequently asked in all the Bank Interviews. These terms are useful not only for your interview but also for your general knowledge. Knowledge and Understanding of Important Banking terms play a very crucial role in the final selection. Account Agreement: The contract governing your open-end credit account‚ it provides information on changes that may occur to the account. Account History: The payment history of an account over a specific period
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Large cities have their own climatic conditions. To what extent is this true? (40 marks) Large cities have their own climatic conditions and can be referred to as having a micro-climate. Micro-climates are small scale variations in temperature‚ precipitation‚ humidity‚ wind speed and evaporation that occur in an environment. This would therefore suggest that the statement is in fact true. Large cities create their own climate and weather which is known as the ‘urban climate dome’ within which weather
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