Role of Money in Modern Economics - 1454 Words

Chapter11: Money, Banking the Financial Sector I. Money A. Money is defined as anything people accept for goods and services. In modern economies, money is national currency. B. In the absence of money, societies use a â€Å"barter† system in which goods are exchanged for goods. 1. Barter economies require a â€Å"Double Coincidence of Demand† in that the two market participants must each be supplying what the other demands. 2. Barter also implies negotiations over the exchange (a cost modern economies often avoid), which have the economic cost of the time spent for each purchase an individual makes. C. In a more Modern System, paper currency is the means of exchange. Society’s acceptance of it for goods and services gives money its value.†¦show more content†¦This type of certificate of deposit is denominated in units such as $100,000, is negotiable for resale, and cannot be withdrawn against by check writing. Credit cards are only a method of borrowing money, and are not added into the calculation of money supply. From M1 to the large value CDs in M3, liquidity has changed drastically. Liquidity is how close a given account is to money, a means of making an immediate purchase. Near monies are highly liquid. 4. The book also mentions L as a broad measure of money where L includes M1, M2, and short-term debt instruments (less than 1-year to maturity). I. Banking involves a â€Å"fractional reserve principle,† meaning only a small percentage of demand deposits actually has to be on hand all the time, because banks do not have all accounts being used up simultaneously. This enables banks to make loans and grow the overall money supply. J. Electronic exchange systems, and primarily the debit card, have partially offset the need for people to carry currency, or write checks. Still, many suppliers of goods and services take only cash, and debit cards do not eliminate the possibility of theft and fraud. III. Required Reserves and the Money Multiplier A. Imagine the only bank in an economy has Assets and Liabilities listed below: Monopoly Bank Assets Liabilities Reserves $25,000 Deposits $100,000 Loans $75,000 B. Required Reserve Ratio (RRR or just r):Show MoreRelatedRole of Financial Markets in a Modern Economy1179 Words   |  5 PagesDiscuss the role of financial markets in a modern market economy. Explain the role and function of the share market and its effect on the economy. The financial market is the most influential sector in a modern market economy. The financial markets provide products to consumers and financial intermediaries allow for the mobilization of money between savers and borrowers. The share market is the financial market in which investors buy and sells shares. The share market’s main function in theRead MoreThe Taming Of The Shrew And Gil Junger s Film, Nineteen Things I Hate About You1193 Words   |  5 Pagesmarriage being an economic agreement as well as the structured roles played by men and women that were prevalent in the 16th century and how gender affected the way a person can be viewed and courted in the same time period. This is contrasted by Gil Junger’s 1999 appropriation, Ten Things I Hate About You, in which modern teenage life and relationships are explored, touching on these same issues in relation to gender roles in a modern context. In this essay I will compare the roles of men and womenRead MoreThe Am erican Ethos And The Contribution By Franklin1372 Words   |  6 Pagessubsequently played a part a seminal part in the creation of modern capitalism and globalism through his writing on The Way to Wealth. 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Malaysia s Income Inequality Trend Essay - 863 Words

From figure 5 and figure 6 we can infer that Singapore has most volatile GDP per capita and GDP per capita growth rate whereas Indonesia has most stable GDP per capita and GDP per capita growth rate which are unaffected by global economic recession and other global economic factors. Figure 5. GDP per capita from 2007 to 2015 Figure 6. GDP per capita growth rate from 2007 to 2015 4. Income Inequality Figure 7. Income inequality trend From the figure 7, we can infer that Indonesia has lowest Income inequality, but in the recent few years, the seems to be increasing. Malaysia has high income inequality but it is having a decreasing trend. Singapore’s income inequality trend is almost at the same level. In the year 2015 the income inequality of all the three countries has become almost equal i.e. ~ 41%. Based on the above done analysis of 3 countries i.e. Indonesia, Malaysia and Singapore we can find that †¢ Indonesia is the most populated country among the three countries †¢ Indonesia’s and Malaysia’s population growth trend is almost constant, it is not decreasing too fast like Singapore. †¢ Indonesia’s and Malaysia’s population distribution is triangular shaped unlike Singapore’s population distribution which has less population in the age group 0 – 20 years. Singapore will have more aged people in the near future. †¢ Indonesia’s GDP increased rapidly increased in the period 2008 to 2010, whereas, Malaysia’s and Singapore’s GDP are at the same level. †¢ Malaysia’s andShow MoreRelatedThe Problem Of The Wage Gap944 Words   |  4 PagesThe wage gap is one of the most important issues that needs to be discussed and solved in contemporary society. 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To be able to properly analyze the effect globalization has had on inequality we have to look at how we define it: Most neoliberalists tend to look exclusively at extreme poverty as the reference point for inequality and therefore the only objective to eliminate, in fact the World Bank’s online entries about poverty (http://www.worldbank.org/en/topic/poverty/overview,2016) talk only about theRead MoreEssay on Unemployment and Migration in the Philippines1634 Words   |  7 Pagesparticularly more attractive prospects in developed countries (Brooks, 2002). Although it has mostly been in a downward trend, the unemployment rate in the Philippines is still the highest compare to other nations in Southeast Asia and it has remained higher than region’s average unemployment rate (Abella Alburo, 2002; Bauzon Lazo, 2014). 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Bone Collector Questions Free Essays

A crime scene investigator might indicate the scale of evidence in photos by using common tools like cigarette packs, ballpoint pens, or car keys as points of reference. They also use rulers, probably for measuring. 2. We will write a custom essay sample on Bone Collector Questions or any similar topic only for you Order Now Sketches of the scene are Important because they show the relationship of each item of evidence to other Items/the body. Photos offer more detail than a video. A sketch artist might note a specific detail that might not be seen that will help find the suspect In a crime; also, sketches provide the exact graphic coordinates of an Item. Ata minimum, areas that a crime scene will include are the exact spot where the offense took place, areas from which the site can be entered, exited, or escaped, and locations of key pieces of evidence. 4. Math skills relate to crime scene Investigations because In both, thinking Is Involved, as well as planning, to find the right answer, or In this case, the suspect. Also, Investigators look at all pieces of evidence In a crime scene, and we as students look at all the clues In a word problem when we try to figure It out. For example, an Investigator might use the distance formula when figuring out how many steps the suspect took from point X to point Y. Or, might use trigonometry for finding out angles, like how wide the door was open when the suspect escaped. 5. Math is important. 1. In photographs, how might a crime scene investigator indicate the scale of evidence found? A crime scene investigator might indicate the scale of evidence in photos by using common tools like cigarette packs, ballpoint pens, or car keys as points of reference. They also use rulers, probably for measuring. 2. Why is it important to create sketches of a scene (instead of using only photos and video)? What might a sketch artist note? Sketches of the scene are important because they show the relationship of each item of evidence to other items/the body. Photos offer more detail than a video. A sketch artist might note a specific detail that might not be seen that will help find the suspect in a crime; also, sketches provide the exact graphic coordinates of an item. . Ata minimum, what areas does a crime scene include? At a minimum, areas that a crime scene will include are the exact spot where the offense took place, areas from which the site can be entered, exited, or escaped, and locations of key pieces of evidence. 4. How do you think math skills relate to crime scene investigation? How might an investigator use geometry and math skills? Give examples. Math skills relate to crime scene Investigations because in both, thinking Is Involved, as well as planning, to find the right answer, or In this case, the suspect. Also, Investigators look at all pieces of evidence In a crime scene, and we as students look at all the clues in a word problem when we try to figure It out. For example, an Investigator might use the distance formula when figuring out how many steps the suspect took from point X to point Y. Or, heshe might use trigonometry for finding out angles, Like how wide the door was open when the suspect escaped. Bone Collector Questions By Beaujolais important because they show the relationship of each item of evidence to other items/the body. Photos offer more detail than a video. A sketch artist might note a specific detail that might not be seen that will help find the suspect in a crime; also, ketches provide the exact graphic coordinates of an item. 3. Ata minimum, areas evidence. 4. Math skills relate to crime scene investigations because in both, thinking is involved, as well as planning, to find the right answer, or in this case, the suspect. Also, investigators look at all pieces of evidence in a crime scene, and we as students look at all the clues in a word problem when we try to figure it out. For example, an investigator might use the distance formula when figuring out how many steps the suspect took from point X to point Y. Or, heshe might use trigonometry for examples. Math skills relate to crime scene investigations because in both, thinking is involved, as well as planning, to find the right answer, or in this case, the suspect. Also, investigators look at all pieces of evidence in a crime scene, and we as students look at all the clues in a word problem when we try to figure it out. For example, an investigator might use the distance formula when figuring out how many steps the suspect took from point X to point Y. Or, hexes might use trigonometry for finding out angles, like how wide the door was open when the suspect escaped. How to cite Bone Collector Questions, Papers

Economic of Education Quantitative Analyse - Myassignmenthelp.Com

Question: Discuss about the Economic of Education Quantitative Analyse. Answer: Introduction In largest sense, education can be termed as an act of experience that has determinative effect on the mind, character and physical activity of person. Addition to that, Education dealt as a given process by which society gets transmission of collected knowledge, skill and values from one generation to another (Maxwell 1994). Furthermore, Education plays an important role as it help in preparing individuals for entering into labour forces as well as equipping them with the required skills as it engages in future learning experiences. Therefore, Educational accomplishment generally raises ones income (Martins and Pereira 2004). After completing formal education, young people should be able to make a successful change from school to work with the acquired skills and awareness subsequently. Wage differentials have to do with the variability in wages that accrue to different jobs and altered groups of labour in the labour marketplace. The consistency of educational career controls whether wages for this occupation are going to be low or high and will consequently be a source of wage differences. Purpose: The purpose of the study is to predict the statistically significant association between years of education and amount of daily wages. We would like to figure out what amount of daily wages is estimated with the help of years of education. Background: Economists are eager to find the association between years of education and amount of daily wages. Concisely, wages are predominant features in almost all markets particularly of capitalist economies (Budra and Moro-Egido 2008). In recent times, economists have noted wage differentials and asked to clarify them. Addition to that, their empirical studies prove that education plays an important role in defining wages and consequently a basis of wage differentials. The two factors have cause-effect relation according to our pre-assumption. In this research report, we are focusing to verify the relation between these two variables with sampled 100 data. We are seeking to verify and equalize the proven results. Method: The data file contains 100 observations for each of the variables that are wage and educ. Both the variables are numeric in nature. Wage refers earnings per hour and Educ. indicates years of education. The data is analysed with the help of MS Excel. The Data analysis toolpack is installed from analysis toolpack option. We used the Data analysis tool and executed descriptive statistics as well as linear regression equation with the help of given data sets. Descriptive Statistics: Descriptive Statistics wage educ Mean 22.3081 Mean 13.76 Standard Error 1.4021437 Standard Error 0.272704 Median 19.39 Median 13 Mode 38.45 Mode 12 Standard Deviation 14.021437 Standard Deviation 2.727044 Sample Variance 196.60071 Sample Variance 7.436768 Kurtosis 2.6065006 Kurtosis 1.317333 Skewness 1.4858281 Skewness 0.440879 Range 72.06 Range 15 Minimum 4.33 Minimum 6 Maximum 76.39 Maximum 21 Sum 2230.81 Sum 1376 Count 100 Count 100 The descriptive statistics of wage shows that mean and standard deviation of wage is 22.3081 and 14.021437. The amount of wage has minimum value 4.33 and maximum value 76.39. The range of wage is 72.06. The descriptive statistics of education shows that mean and standard deviation of years of education is 13.76 and 2.727044. The years of education has minimum value 6 and minimum value 21. The range of years of education is 15. Scatter plot: This is a scatter plot of education vs. wages. Here, years of education are an independent variable and wage is a dependent variable. The years of education is plotted in the x-axis and wage is plotted in the y-axis. The trend line is fitted in the scatter plot. The scatter diagram indicates that the two variables are not well correlated (Neter et al. 1996). The data points are not also well concentrated. Simple Linear Regression: The simple linear regression determines the linear relationship between two or more variables. One variable must be dependent or response variable and predictor or independent variables are one or more than one in number. The simple linear regression model is stated as Y = 0 + 1*X (Zou, Tuncali and Silverman 2003). Here, Y = dependent/ response variable X = independent/ predictor variable 0 = intercept of the regression model 1 = slope of the regression model / coefficient of the predictor SUMMARY OUTPUT Regression Statistics Multiple R 0.413051559 R Square 0.17061159 Adjusted R Square 0.162148443 Standard Error 12.83441505 Observations 100 ANOVA df SS MS F Significance F Regression 1 3320.693589 3320.6936 20.15936 1.94674E-05 Residual 98 16142.77655 164.72221 Total 99 19463.47014 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept -6.914787841 6.633894418 -1.0423422 0.299818 -20.07953508 6.249959394 educ 2.123756384 0.473005701 4.4899171 1.95E-05 1.185091988 3.06242078 The estimated intercept of the model is (0 = -6.914787841). It means that if the year of education were 0, then the daily wage would be (-6.914787841) (Montgomery, Peck and Vining 2012). The estimated slope of the model is (1 = 2.123756384). It means if the education level increase or decrease by 1 year, the amount of daily wage is increased or decreased by 2.123756384 units. The estimated linear regression model is- Wage = (-6.914787841) + 2.123756384*educ. The calculated Multiple R (Correlation Coefficient) of the model is 0.413051559. It indicates a moderately positive correlation between these two variables. The value of multiple R-square is 0.17061159. Multiple R-square is also known the coefficient of variation. Years of education can explain only 17.06% variability of amount of daily wage. The linear association is not strong and significant. The value of multiple R-square (17.06%) refers that the fitting of the linear regression model is not good. The F-statistic is 20.15936 with significant p-value 1.94674E-05 (0.0). The p-value is less than 0.05 when chosen level of significance is 5%. Hence, we reject the null hypothesis of statistically significant linear relationship between the dependent variable (wage) and independent variable (education) with 95% probability. We can conclude that there is no significant effect of years of education on the amount of daily wage. Prediction education wage 12 18.5703 14 22.8178 Difference 4.2475 For the years of education 12, the amount of daily wage is predicted as 18.5703. For the years of educational 14, the estimated daily wage is 22.8178. The difference of daily wage is 4.2475 units for the difference of two years of educations. Discussion: In this research report, the result does not match with outcomes of data analysis executed by economists. The key strength of the research is that the collected data is primarily surveyed and authentic. The limitation of the data analysis of the research is that the size of the surveyed data is small. Therefore, the outcome significantly fluctuated from the previous results. The method of data collection and sampling are similar to other studies. However, the chosen target population may have lots of homogeneity. The outcome is inconsistent in comparison to the other studies. The findings do not have clear policy implications. It is just based on primarily collected data. Recommendations: We should recommend the data collector to collect more data for presenting the true scenario of association between two variables that are years of education and daily wages. The large sample would definitely provide better outcome. References: Budra, S. and Moro-Egido, A.I., 2008. Education, educational mismatch, and wage inequality: Evidence for Spain.Economics of Education Review,27(3), pp.332-341. Martins, P.S. and Pereira, P.T., 2004. Does education reduce wage inequality? Quantile regression evidence from 16 countries.Labour economics,11(3), pp.355-371. Maxwell, N.L., 1994. The effect on black-white wage differences of differences in the quantity and quality of education.ILR Review,47(2), pp.249-264. Montgomery, D.C., Peck, E.A. and Vining, G.G., 2012.Introduction to linear regression analysis(Vol. 821). John Wiley Sons. Neter, J., Kutner, M.H., Nachtsheim, C.J. and Wasserman, W., 1996.Applied linear statistical models(Vol. 4, p. 318). Chicago: Irwin. Oja, H., 1983. Descriptive statistics for multivariate distributions.Statistics Probability Letters,1(6), pp.327-332. Zou, K.H., Tuncali, K. and Silverman, S.G., 2003. Correlation and simple linear regression.Radiology,227(3), pp.617-628.