Nominal interest rate

Midland is a global energy company with three separate divisions, oil and gas exploration and production, refining and marketing, and petrochemicals. Exploration and production of oil and gas was Midlands most profitable business making $12.6 billion after-tax earnings and $22.4 billion of revenue, extracting about 2.10 barrels of oil per day in 2006. Petrochemicals’ was the least profitable business, making $2.1 billion after-tax in earnings. Midland had been incorporated 120 years before 2009

1. Has the inflation rate in Canada increased or decreased in the past few years? What about interest rates? R/. The inflation rate of CAnada is low. The inflation rate was at 1.10 % in August. And the interest rate was declining. In one news said that on 1915 until 2013, the Canada 's inflation rate 3.2% reaching an all time high of 21.6% in June of 1920 and got a record low at -17.8% in June of 1921. 2. If history repeats itself and we see a decline in the rate of money growth, what might

US Economic Backdrop Improves There is now increasing conviction in the view that Q1’s contraction to US real GDP was, in fact, transitory, as opposed to the onset of a new and slower growth trend. Special factors, such as bad weather, the labour dispute at West Coast ports, and statistical noise were all to blame for the negative outcome. Members of the Federal Open Market Committee (FOMC) are, therefore, relieved to be witnessing a generally better-than-expected tone to US economic data in recent

powers of the Bank of Ghana relates to: I. Penalties – BOG may impose penalties in respect of number of issues under the Act II. Rule –making power III. Policies –grant of advances and credit facilities, monetary policy, exchange rates policy IV. Inspection –

an account paying 7 percent annually, starting 1 year from now. What will be the amount at the end of 5 years? A simple diagram will illustrate: FVa ϭ ? 500 0 500 500 500 500 1 2 3 4 5 The first $500 will collect interest for 4 years, the second for 3 years, and so on. This problem could be solved by making all the separate calculations and adding the items: FVa ϭ A (1 ϩ i )nϪ1 ϩ A (1 ϩ i)nϪ2 ϩ · · · ϩ A (1 ϩ i )0 where FVa ϭ Future value of the annuity A ϭ

December Fed Rate Hike Remains in Play Many observers believed that the 27-28 October Federal Open Market Committee (FOMC) meeting would be a non-event, largely due to the fact that there was no scheduled press conference after its conclusion. In fact, the press statement revealed some interesting insights into the current line of thinking of FOMC members. Most importantly, it is abundantly clear that the vast majority are still inclined to raise the federal funds target at the 15-16 December policy

Unfortunately, personal and family finances have become very complex and have more risk and dangers associated with them today than they did a generation ago. Personal and family finances often cause high levels of stress and unhappiness. The Two Income Trap quotes an upsetting statistic that says, “Seventy percent of all Americans (roughly 140 million people) say that they are carrying so much debt that it is making their home lives unhappy,” and around 1.5 million families declare bankruptcy each

the Diet approve the appointment (“Organization”). As the central bank of Japan, the BOJ broadly has two objectives, that is, stabilizing prices and the financial system. The price stability is set to be two percent in terms of the annual rate of change in the consumer price index (“Price stability”). Regarding the relation with the government, the Bank of Japan Act was fixed in 1997 and made clear the independence of the BOJ from the government. The Act bans the Cabinet from firing the

Discount rate. The discount rate is defined by the Federal Reserve as, “ how much the United States central bank charges its member banks to borrow from its discount window to maintain the reserve it requires” (www.federalreserve.org). If for example, the discount rate is set low, banks will be more likely to borrow from the central bank and increase the reserves. With increased reserves the federal funds rate will also decrease, which in turn will indirectly effect all other aspects of the economy

Reserve requirements The conduct of this approach is that the central banks set a fixed reserve ratio, which is measured by the proportion of customers’ deposits and approved liquid assets, to domestic commercial banks or credit institutions. This rate is often higher than as usual. The purpose of this method is to limit the amount of money that credit institutions can use to make loans to their customers. In order to protect a particular commercial bank or credit institution out of bankruptcy