Macro11 Essay Example | Topics and Well Written Essays - 1250 words

Macro11 - Essay Example It is the ratio that banks keep with themselves against the deposits they receive; the bank cannot just lend out all the money it receives. A lesser reserve ratio by the government would mean that the commercial banks have to keep lesser sums of money with themselves and are free to lend out more money into the economy which becomes extended through the effect of â€Å"money multiplier†. If the government’s aim is to reduce inflation it can pump less money into the economy by increasing reserve ratio for which the banks would have to abide by and keep more money with themselves. All the commercial banks lend money from the Central bank (controlled by the government or the government’s bank – at times also referred as the bank’s bank). They have to pay money for this lend money to the central bank, in what our terms we call interest, the banks when borrow from the central bank is called the discount rate. A higher discount rate would lead the banks t o borrow less from the central bank and thereby lending less to the public, which would in turn reduce the money supply in the economy. Conversely, if the federal government decides to increase the money supply, a decreased discount rate would be the option. ... The commercial banks are under the control of the central bank thereby they have to abide by the rules and regulations set by the Central bank. In this tool, there is a market of â€Å"bonds† and â€Å"money† whereby if the central bank wishes to contract the money supply, all it has to do is to print a fancy looking bond and write off an amount in it. Then it sells this bond on the written value to the commercial banks who have to buy the bonds; this reduces their money supply, in making up for their reserve ratio they have to make sure they lend out less as money has flown out of the commercial banking system onto to central bank; this has decreased the money supply in the economy. In contrast, if the federal government wishes to expand the money supply, it would purchase securities (bonds) from the central bank; the buyer gets the money and seller gets a piece of paper (Bond). In this market operation, the commercial bank has excess money to lend out because it has s old a bond, therefore after lending, through a multiplier effect the economy would enhance. This is one of the most commonplace tools used by the governments as it gives an efficient way of allocating money and it convenient without as such delays. The effect can also be forecasted depending on the values of the multiplier. It’s all a study about the state of the economy that will determine the success of any of these tools, but as statistics tell us, this has so far been the most effective tool used by governments today. Answer 2: In case of an easy money policy, the government simply decides to reduce the interest rates: As the interest rate falls from 10% to 8%, there becomes an excess demand for money as we move down the same supply â€Å"S1† curve for money. This excess

Management Tasks and Computer Technology Essay Example | Topics and Well Written Essays - 1000 words

Management Tasks and Computer Technology - Essay Example In this scenario, much of the data and information comes openly from the vision and mission statement for the organization. In addition, establishing objectives for the business goal and following up on the implementation of the plan are two significant elements of the planning function. For instance, if an organization wants to open a new local restaurant, the manager will need to develop a marketing plan, a hiring plan and a sales plan. Additionally, the formulation of these plans can involve extensive searches of data and information as well as creation of a technically feasible proposal. In this scenario, computers present an excellent support for carrying out the task of information search through information retrieval systems on the Internet (Rothbauer-Wanish; FAO). Moreover, a good information recovery system which can help in collection and retrieval of related data and information on the subject of concern can significantly improve the quality of data and information collect ion. With the exception of this, there are a wide variety of other packages for this service. For instance, activities such as working out project budgets, time frames and generation of proposal reports can be aided with the help of data management systems, electronic spreadsheets and word processing, which smooth the progress of development and management of various alternatives with relative simplicity. At the present, the majority of business organizations make use of the Internet for planning of their tasks. For instance, if an organization wants to launch a new product or a service, it can use internet based surveys to collect the response of people. In light of their response, an organization can better decide whether it should launch a particular product or not. So, the use of information technology can save a lot of precious time and effort of an organization (Rothbauer-Wanish; FAO). Organizing Another significant job of managers is organization of the business and this cons ists of various important tasks such as organizing people and resources. In fact, determining how many people would be required for specific shifts can be vital to the success of an organization. On the other hand, if those workers do not have the essential resources to carry out their activities, organization cannot occur. In addition, without an organized place of work, workers will perceive a manager as unqualified and may lose respect for that specific manager’s managerial techniques. In this scenario, computer supported tools and applications can play a significant role. At the present, there are a wide variety of tools and applications which can perform these jobs on behalf of managers. For instance, MS Project can be used to organize tasks. A Gantt chart can provide the necessary information such as when a particular activity will be completed and how much resources will be required to perform a specific task. In this way, computer technology has made this function of management relatively easier (Rothbauer-Wanish; FAO). Leading The management and leadership are not the same activity. Basically, a manager is responsible for managing the workers and their tasks. In other words, this person ensures that all the activities are carried out on time and specific rules and standards are followed. In this scenario,