Essays on Money

Introduction ETFs are funds that track a stock index, bonds, or commodities. In contrast to mutual funds, exchange-traded funds are not actively managed, since their policy is only to reproduce the same diversification of a particular index.[1] Passive Investment Strategy Investors in these open-end funds pursue a passive investment strategy. Banks usually offer...

Money laundering is a method used to make money obtained illegally appear to originate from legitimate sources (Madinger, 2016). The process is termed as “laundering” since money from the illicit activities is considered as “dirty.” The most commonly used strategies of laundering money include utilizing legitimate cash-based businesses, shell companies,...

Although banks, credit unions, and saving and loan companies offer similar services, they have pertinent features that cater to specific financial needs of customers. Saving and current are the two basic types of accounts offered by financial institutions. Savings accounts accumulate interests, which vary depending on the prevailing market rates,...

Although banks, credit unions, and saving and loan companies offer similar services, they have pertinent features that cater to specific financial needs of customers. Saving and current are the two basic types of accounts offered by financial institutions. Savings accounts accumulate interests, which vary depending on the prevailing market rates,...

Do you think levels of pay contribute to Twitters success? I think the salary levels of Twitter have contributed to the success of the organization. Talented people in business are highly sought out given the contribution that they bring to the organization. They are the persons that are skilled in bringing...

Business Environments and Macroeconomics In the business environments, macroeconomics involves external factors which affect the business along with resource allocation. On the other hand, microeconomics concerns aspects associated with the availability of resources, their usage and how they influence individuals and the organization at large. Hence, understanding the microeconomic factors within...

The Impact of the Housing Sector on the Economy The housing sector is a vital component of an economy. Trends in the sector are likely to be replicated on an economy-wide scale leading to far-reaching effects as the 2008 global financial crisis demonstrated (Haberler, 2017). Housing contributes to the economy in...

The return to the gold standard will stabilize the already falling value of the dollar, boost the confidence of foreign and domestic investors and discipline spending by the federal. The United States constitution enables for a gold standard for the nation with a specific direction that Congress define the dollar...

The relationship between households and financialisation. Financialisation is a term used to refer to the process of making and accumulating profit through financial channels in financial institutions rather than the conventional way of trade and production of commodities. The behaviour of household consumers keeps changing depending on payment stagnation, increase...

Profit Motive Profit motive refers to the aim to accomplish a financial gain or material bid. It may as well be described as the fundamental reason as to why people or organizations take part in any activity. In economics, the profit motive is the incentive of companies which function for profits...

Define and explain investment decisions in the Capital Market with respect to expected returns, discounted cash flow, and classical utility theory.  Give specific examples. A capital market is part of the financial system which aims at raising capital through the selling of binds, shares and other long-term investments. They offer various...

Monetary Policy Monetary policy is the action taken by the Federal Reserve to achieve specific economic goals. The main targets are the inflation and the unemployment rate. Some of the tools used to achieve the goals are open market operations, the reserve requirement and the discount rate. The policies the Fed...