The Definitions of Financial Intermediaries in the economy - Free Essay Example

Sample details Pages: 6 Words: 1913 Downloads: 3 Date added: 2017/06/26 Category Economics Essay Type Analytical essay Did you like this example? Definitions of financial intermediary is financial institutions accept money from the depositor or investor funds and borrowers, and the relationship between the income for those seeking in their capital and those seeking credit. Financial intermediaries including savings and credit unions, architecture and loan association, savings Banks, commercial Banks, life insurance companys credit departments and investment companies. Besides that financial intermediaries are the institutions which are intermediaries between savers and investors, moving funds between the two. Examples include banks, insurance companies, credit unions, mutual funds, pension funds, and finance companies. In addition, the 1999 Gramm-Leach-Bliley Act(GLB) authorized the creation of financial holding companies (FHC) that are allowed to engage in a wide range of financial services, including banking, securities, and insurance activities. Bank is a financial intermediary channels for the equ ivalent of a deposit-taking and lending practices, either directly or through the capital market. Banks to provide capital deficit of connection, can provide a residual value. Banks generally is a high standard of standardized industry, government restrictions on the media-bank financial activities, time and place of evolution. The current international bank capital standard is called the new Basel. In some countries such as Germany, banks, historically, have a professional stake in industrial enterprises in other countries like the united States prohibit banks have non-financial companies. Definition of financial institutions is as private or government is state-owned organization that, broadly speaking, presents two behavior of a kind of fund it is the savers and borrowers supplier and customer of capital. Two main types of financial institutions with increasingly fuzzy boundary is first keep banks and credit cooperatives savings to pay interest on the loan from profit, a nd second is non-depository insurance companies and mutual fund raising money, by selling their policy or stock by units are provided to the public the profit cycle efficiency and profits payable. Financial intermediaries are divided into two types, that is depository institutions and non-depository institutions. The separation is based on the type of account or liability the institution issues. Appendix E contains a chart which illustrates financial intermediaries by type and sources and uses of funds. Depository institutions obtain their funds primarily from deposits from the public. Examples of these institutions include commercial banks, savings and loan associations, savings banks, and credit unions. From a consumers perspective, depository institutions now all provide similar banking services such as car loans, credit cards, home equity lines of credit, mortgage loans, checking accounts, and time deposits. Demand and time deposits account for most of depository instit utions liabilities. Banks are the largest of the depository institutions, accounting for 23 percent of the total assets of all financial intermediaries in 2000. Savings institutions (S Ls) and credit unions combined accounted for approximately six percent of the total assets of financial intermediaries in 2000. There are three major types of non-depository financial institutions first is Contractual Savings Institutions, second is Finance Companies and last is Investment Intermediaries. Examples of contractual savings institutions are include insurance companies and private, state, and local government pension funds. These institutions enter into contracts with customers that are long-term financial arrangements. Insurance or pension payments are usually set for a fixed period of time. Second is finance companies, these companies borrow in the financial markets and lend to businesses and consumers. Included in this group are auto finance companies which are often called ca ptives. Captives are owned by the automobile manufacturer which offers credit to their customers to purchase the automobiles they produce. In total, these companies were about four percent of the industry, as measured by assets, in 2000. Last are investment intermediaries. Examples of investment intermediaries include mutual funds and money market mutual funds. These investment intermediaries are a fast growing sector of the financial industry. In 1970, mutual funds and money funds were small. By 2000, they controlled more than 23 percent of financial institution assets. In financial institutions transfer of capital between savers and those who need capital take place in the three different way, these is direct transfers of money and securities, investment banking house and financial intermediaries. An investment bank is a kind of financial institutions to help individuals, large enterprises and government through the financing of underwriting and as a representative of cli ents in securities combinations. Financial intermediary is a financial institution connection surplus and deficit agent. The classic example is the banks financial intermediary bank deposits, make into bank loans. Financial intermediaries the entire process, some asset or liability is converted into different asset or liability. So financial intermediaries channel money from those who have extra money depositor to people who may not have enough money to carry out a desired activities. In the United States, financial intermediary is a typical mechanism design, let us borrowers and financial institutions of funds between of indirect impact. That is to say, saver rate providing funds to an intermediary institutions such as bank, and the institutions to fund. This may be in the form of loans or mortgages. Or, they can put money directly through financial markets, called financial intermediaries For the company of investment Banks also participate in merger and acquisition, and the provision of ancillary services such as market manufacturing, trading derivatives markets, fixed income instruments, foreign exchange, commodities, and equity securities. Telegraphic transfer money or credit transfer is an electronic funds transfer from one person or institution to another place. A wire can be made by a bank account to another bank account or cash through transfer funds of the office. Different telegraphic transfer system and operators offers a variety of options relative to directly resolve and finality and cost, value, and volume of trade. The central bank wire transfers systems, such as the Federal Reserves Fed Wire system in the United States are more likely to be summarized calculate RTGS real-time system. The fastest system to provide RTGS available funds, because they provide direct instant and finally publish irrevocable solve GDP into complete of electronic accounts telegraphic transfer system operation. Other systems provide such as chip net s ettlement, regularly. The more direct settlement system tends to monetary value higher requirement high transaction process, with high transaction costs, and small volume of payments. Currencies exchange risk because market volatility may decrease direct solution. Securities for money, for the purposes of item, include such things as Euro currency paper, bills of exchange, promissory notes and face value vouchers where the voucher can be redeemed for cash. Securities for money are sometimes exchangeable for cash but always represent a value to the holder. They are often held in place of a debt. The types of investments in financial intermediaries specialize is depository institutions provide mortgages, make loans to businesses and consumers, and invest in United States government and other securities. Insurance companies and pensions funds are the contractual savings institutions, these is receive much of their funds from long-term contracts. Since they have a predictable, long-term flow of funds, contractual savings institutions can invest in longer-term assets, without fear of loss of liquidity. Thus, these intermediaries invest in corporate bonds and stocks, as well as U.S. government and state and local municipal securities. Life insurance companies also make commercial mortgage loans. Finance companies make business and consumer loans. Automobile manufacturers often have their own finance companies called captives, which provide credit to customers who purchase their particular make of automobile. Some finance companies are a source of credit for higher risk borrowers who cannot qualify for loans from depository institutions. Investment intermediaries, as the name implies, invest in stocks and bonds, and, in the case of money market mutual funds, in short-term money market instruments. Caused the changes in market share of different types of financial intermediaries over the last three decades is shifts in market shares of the different types of financial intermediaries represent an interesting example of the adjustment of financial markets and institutions to changing economic and regulatory conditions. At the end of the 1970s, short-term market interest rates rose with inflation. However, banks could not pay market interest rates because regulators maintained ceilings on the interest rates banks could pay depositors. In response to this opportunity, money market mutual funds became popular. These money market mutual fund accounts, issued by investment firms, paid market interest rates to small savers by pooling investor funds and purchasing financial instruments. These investments provided savers with higher interest rates than regulated accounts such as passbook savings accounts. Consumers rapid acceptance of money market mutual funds suggests that that the higher market interest rates compensated for the lack of deposit insurance on these products. In the 1980s and 1990s, mutual funds were able to broa den their appeal to savers by offering a wide array of stock, bond, and money funds designed to appeal to savers. During the 1990s, the upswing in the stock market typically generated higher returns on stock funds than the market interest rates banks paid on time and savings deposits. As a result of these higher returns, the mutual fund industry, including money market funds, now accounts for more than one-fifth of financial institutions assets. The difference between direct and indirect investment is indirect investment occurs when people and businesses borrow and lend through financial intermediaries. Direct investment occurs when people and businesses borrow and lend directly rather than through intermediaries. Today, many large corporations borrow and lend directly in the financial markets without going through a financial intermediary because they can get better rates by borrowing or lending directly. Commercial paper, a short-term unsecured promissory note issued by a la rge corporation, provides a good example of direct investment. Corporations might buy commercial paper directly from another firm as an investment rather than putting their funds into a bank that holds commercial paper in its portfolio. Corporations also borrow directly, with guarantees from banks, in the commercial paper market rather than borrowing from a bank. Similarly, small savers often buy Treasury securities directly rather than putting funds into a bank which holds Treasury securities in its portfolio. Besides that, last is a mutual fund. Mutual fund are corporations that accept money from savers and then use these funds to buy stocks, long-term bond, or short term debt instruments issued by business or government units. Conclusion: Definition of mutual funds is open mode fund investment company operation raise shareholders in one group and investment assets, in accordance with the prescribed objectives. Mutual fund raise money by selling stock fund to the publi c, like other types of corporations can sell stock itself is open to the public. Mutual funds and then put the money they receive from the sale of their shares and use it to buy all kinds of investment way, such as stocks, bonds, money market instruments. In exchange for funds, they to buy shares of stock, fund in shareholders receive a copy of the international monetary fund equity position, in fact, each of its securities. For most common fund, shareholders are free to sell their shares at any time, although the price mutual-fund shares will fluctuate daily, depending on securities held in the performance of the fund. Mutual fund benefits include diversity and specialized fund management strategy. Mutual fund provide choice, liquidity, and charge fees and convenient, but often need at least investment. An enclosed fund is often incorrectly called mutual funds, but actually is a kind of investment trust. There are many types of mutual funds, including the aggressive growth fu nd, fund asset allocation, balanced fund, adjustable fund, a bond fund, capital appreciation fund, cloning funds, close fund, stock fund, crossover fund and tax free. Don’t waste time! Our writers will create an original "The Definitions of Financial Intermediaries in the economy" essay for you Create order

Episode write up on product operation management Movie Review

Essays on Episode write up on product operation management Movie Review Task Episodes write up on "product operation management† Introduction The product operation management entails the procedures that are followed when the item is undergoing the manufacturing process, each of which is determined by the type of product being made. The product design and the steps in the production process are determined by the process planning and design of the factory. The process planning engineers determines the functions of each process as well as the plant location and the layout. Material handling procedures and processes used must ensure the most economical use other factors of production. The product operations management problems vary from one product to another. How to make an axe In the episode How an Axe is made, the interesting aspect of the product operation is that an axe began as a simple sharp-ended stone, but its improvement involved adding a simple handle that made it better by giving the axe much impact. It is interesting that the increased technology has not replaced the use of axe in chopping wood or meat. How it is made begins at as a high quality cylinder, which is subjected t intense heat to make it pliable as it is shaped by a powerful press and it is also pounded to give it a shape. It is subjected to series of dykes to give it its shape and to cut the extras. It is taken to another stage in which it is placed in another ramp to press it into a shape. They are placed on a revolving rack to cool off. A dozen are put into a tumbler and tossed about with tiny steel pallets to smooth their rugged edges. The back of the axe is then pressed against the sanding belt and the ides of the edges are pressed to smoothen it. Both sides of the cutting edge are sharpened too. The neck of the axe is also smoothened against a powered sanding belt (Baldur, pp 120). They are then deepened to a special solution heated to harden them, and quench them in warm oil, and the temperature change hardens the axe. Pre-punched leather and wood are assembled to make the handle. The rings get smaller towards the neck of the axe to give it a customized handle and to give it a grip. An assembly plant is used to insert the lower side of the axe which has been lubricated by wax. The base of the handle is flattened to give it the grip and an abrasive belt is used to shape the leather to make the layers smooth. The ends of the steel are then smoothened using the sanding belt to create a glossy sheen to make the axe good on the job. How to make Pencils Color pencils come in a variety of shades but the he product process begins with a pigment concentration that determines the quality. The colored pencil does not contain any lead but contains pigments, minerals and binding agents. Colored pencils starts with a combination of pigments every shade has a specific pigment recipe. A large quantity of shade is produced as a batch at a time and to have color recipe, the ingredients are weighed. A specific quantity of water and additives are boiled, a binding agents are added, with waxes and gums are added to it. The ingredients is mixed with hot water forming a paste, and mixed with the pigment. The next machine mixes the paste into a fine one and intensifies the color and the particles are moved by a conveyor belt and are compressed and are fed into another machine. The paste is compressed into a continuous straight forming a diameter of the pencil lead. The next machines shapes the pencil lead which are bathed into a chemical waxes which coat it with color pigments. The lead is then subjected to quality test including quality test and durability test to ensure each has one hundred yards of writing. The exterior color is also made like the one of the color inside. The pencil is then branded with the company name and rolled in an abrasive wheel to sharpen them. The pencils are then packaged and inspected for quality (Baldur, pp 140). How to make a Sword A sword is an age-old weapon, producing a medieval sword like that of the knight of the shining armor. The product operation management of making a sword begins with a piece of high carbon steel is placed in a fixture and a computer guided blade cuts the shape of a sword, with all the specifications of the original. After an hour of carving, a plank of sword emerges. The plank is submerged into a hot liquid soft which eliminates the excesses created by the carvings and the blade is then plunged into a cooling liquid in a process called quenching, which is interesting due to the sudden change of temperature. A belt grinder is used to give the blade its shape and to sharpen its ages. To test its strength they strike a metal barrel with it but the sword never chip. The sword guard is then shaped and the smoothened against a sand belt to make the final blade smooth (Baldur, pp, 156). Conclusion The process of making each item involves a series of processes and procedures which are undertaken to move the item from the raw material to the stage when it is a final product. The production process approached through the most appropriate planning process to ensure smooth flow of production processes so that bottlenecks are avoided in the production process. Work Cited Baldur, Raj.  Production and Operation Management. New Delhi: Book Enclave, 2008.

Preschool Age Free Essays

During preschool age, physical growth begins to slow down. It is much slower than it was during infancy. Children at the early childhood stage, children start to become taller and leaner as they mature. We will write a custom essay sample on Preschool Age or any similar topic only for you Order Now They will look more like adults than like infants by the end of early childhood. â€Å"During the ages two to six, children make great strides in the development of gross motor skills, which involves the large muscles used in movement â€Å"(Rathus, 2017). At four years old, she has a more complex physical development using both gross and fine motor skills. She has greater control over large muscles, such as her arms and legs. She is also able to coordinate multiple tasks at the same time, such as singing and building blocks as opposed to when she was a toddler. She is much more coordinated in her play than the younger children around her. In early childhood, children appear to acquire motor skills by teaching them selves in observing the behavior of other children and adults† (Rathus, 2017, p. 255). Thus, fine motor skills develop more gradually. Fine motor skills are all the small muscles used in manipulation and coordination. Control over the wrist and fingers enable children to, write, dress themselves and in her case the ability to stack blocks. While observing the child’s use of language, her comprehension and use of words is more sophisticated, she can make sentences and can understand what others are saying. She can talk in clear speech. She is quite self-assured and can understand the concept of conversation. Her language is more mature, her memory and imagination has developed and she is able to think more symbolically. Children’s language skills develop radically during the preschool years. Between the ages of three and five, egocentric speech starts to disappear. The child’s conversational language starts to show sensitivity to the listener, for example, the subject was taking turns talking and listening to her fellow classmates. By that age of four years old, some milestones children develop are the ability to ask adults and each other questions, taking turns talking, and partaking in longer conversations. â€Å"They have vocabulary of 1500-1600 words. They’re speech is fluent and their articulation is also good. Children can use five or six words in sentences and can now coordinate two sentences together† (Rathus, 2017 p. 301). How to cite Preschool Age, Papers

Keep Moving On - I Did. free essay sample

I’ve been moving for as long as I can remember. I’ve moved between houses, states, beliefs, interests – countless aspects of my life have been colored by movement. Motion has defined me. Childhood saw me moving between favorite Disney movies, adoring Beauty and the Beast at one moment and plaguing my parents with incessant requests to play Cinderella’s â€Å"Bibbity Bobbity Boo† on road trips the next. I moved between dreams as well – my first ever dream career, as evidenced by old, crayon-colored pieces of yellowing paper from my pre-school years, was the President of the United States. In elementary school, however, I decided I would be a teacher, then an author, then a dolphin trainer or a marine biologist, and so on. My mind never fully settled; I always remained open to new possibilities. Reflecting the apparently nomadic state of my mind, my geographic location changed as well. On March 27th, 2003, I first stepped foot outside of the McCarran International Airport to sullenly greet the new frontier of my life: Las Vegas. We will write a custom essay sample on Keep Moving On I Did. or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page With my first glimpse of the chaotic vortex of flashing neon lights in every direction that the Strip famously offers, I was aware of the stark contrast between my new location and the old. Resistant at first, I learned during my six year stay to adjust my point of view accordingly, coming to love the sparse and rugged beauty of the desert and surrounding mountains. I left my old assumption that my hometown was the only true â€Å"home† I could ever have behind. Slowly but surely, I matured. When the time came to move again, this time to a suburb of Chicago relatively close to the one we had previously migrated out of, I understood that movement was a fact of my life, and of life in general, and that embracing such a life would ultimately improve me as a person, even though it would be difficult. Movement is difficult, because the underappreciated arts of resilience and flexibility are, it would seem, learned rather than inherent. Nevertheless, change is vital to progress. I’ve moved between Ben Franklin’s classes of people, too. I like to think that I can be immovable when the situation calls for it. I will never allow anyone to convince me, for example, that the effort of people to move forward and improve their society is futile. I will remain firm in my objective to make some sort of positive impact on the world. In another sense, I’m movable. I will be swayed by a strong, evidence-based argument. Moreover, even before my birth, the people of the past had moved me. The achievements of many a thinker and explorer carried me to the current vantage point at which I stand. I owe much to the â€Å"movers† of the past. To honor them, I intend to join their journey of progress by dedicating my life to the pursuit of knowledge and insight – to progress. In other words, I will be a mover.