Institution Environment of Finance Essay Example | Topics and Well Written Essays - 1000 words

Institution Environment of Finance - Essay Example The channeling of funds between the two groups mentioned can only happen accurately in the presence of particular participants and via main routes such as financial intermediaries or through the use of organized financial markets. - Mishkin and Eakins (2006) discuss that financial intermediaries can substantially reduce transaction costs that can be defined as the time and money spent in performing financial transactions for instance the exchange of assets, goods or services. One major difference between 'deposit-taking institutions' (DTIs) and 'non-deposit-taking institutions' (NDTIs) is that deposit-taking institutions are organizations such as banks and building societies, whose liabilities (assets to lenders) are primarily deposits. These can be withdrawn at short (sometimes zero) notice and usually form part of the national money supply. Non-deposit-taking institutions are organizations such as life assurance companies whose liabilities are promises to pay funds to savers only in response to a specified event. Unless the specified event occurs, it is very difficult to withdraw these funds and there is usually a considerable financial penalty for savers who do so. Similarly, contributions to a pension fund cannot be easily withdrawn until the pension falls due for payment. While the difference between Discretionary financial saving and Contractual financial saving is that discretionary is a day-to-day decision to acquire financial assets of varying kinds and in varying quantities. While contractual is the regular acquisition of a financial asset of a kind, of an amount and on a date specified in a contract. Question 3 How do money markets differ from capital markets Who are the main users of money markets Basically the difference between the capital markets and money markets is that - Capital markets are for long term investments, - Companies are selling stocks and bonds in order to borrow money from their investors to improve their company or to purchase assets. Whereas money markets are more of a short term borrowing or lending market where - Banks borrow and lend between each other, as well as finance companies and - Everything that is borrowed is usually paid back within thirteen months. Another difference between the two markets is what is being used to do the borrowing or lending. In the capital markets the most common thing used is stocks and bonds, whereas with the money markets the most common things used are commercial paper and certificates of deposits. Traditionally, differences of maturity have been used, as in Table, to create a distinction

The topic is to respond to the question in the assignment Essay

The topic is to respond to the question in the assignment - Essay Example State can also be described as a political institution with a core government that maintains a command of the rightful use of coercion to achieve loyalty within a definite territory. States worldwide have increasingly misused (exaggerated) their power, and this sometimes led to violent protests or revolutions, as witnessed recently in the Arab countries. Dictatorial leadership styles where leaders want to stay in power more than they are required are to be blamed for this. The protests have resulted in countless deaths of innocent citizens and atrocities against humans committed by state machinery such as the army and police. States behave like this because there is no power that holds them accountable. This paper will illustrate how the state operates, the role of the state and its obligations to its citizens, the various instruments that the state uses to obtain allegiance, the role of the media in shaping the image of the state and its representation of situations such as war, and, lastly, the rise of resistance and rebellion against the state. Nation is a term used to refer to people who belong to a shared cultural community with a historical trajectory (Heywood, 2011). Every state, whether capitalist or democratic, uses various forms of coercion. Even under pluralism, where a lot of official democratic liberty exists, the state uses tyranny, sometimes in enormous quantities. A case in point is the penal structure in the United States of America. Approximately two million prisoners, or 60 percent, are black, and this shows that the legal system has been utilized as a tool of repression against the black community. In every society, there is likely to be a set of regulations which are largely acknowledged by the society. These forbid anti-social actions such as murder, rape, and theft. Through such laws and their enforcement, a country attains its class as an impartial watchdog of the society. Nevertheless, law has been used by the system to control its