CHAPTER 1
INTRODUCTION
The purpose of present thesis is to better comprehend the impact of inflation on bank deposit in Pakistan throughout the year of 2006 to 2014. The key intention of this study is to explore the affiliation between bank deposit and inflation. The study of this relationship reveals the observable facts that how this economic factors affects the financial routines of the banking sector. According to the previous review the subject of the inflation always residue among the other economic distress in Pakistan. The rising trend of Inflation always harmfully affected the financial sectors of the country. Inflation gives the impression to be an unrelieved problem in many parts of the world. High Inflation rate creates the catastrophic effects on folk’s living standard. Especially
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They added that increase in inflation rate hurts the functions of financial markets as result generate the financial development of the country begin in diminishing growth.
Haron and Azmi in 2006 have examined the determinants of deposit in commercial bank of Malaysia. They have used the cointegration techniques to show that commercial bank of Malaysia is dependent on deposit which people placed in bank account. In their study they explain the theory of Keynesian the reason of holding the money. He explored the behavior of saving. For capture this motives banks classifies the facility as per people intention. They have described their intentions which are
• Demand deposit is for those customers of bank who not enough money for their expenditure of households they earn their income to cover their expenses. The purpose of this facility is to facilitate the people for their business and daily commitments. Expenses.
• Saving Account is for the purpose of future investment.
• Third is only deposit hold by individual or firm just balance their fund it can be hold for unforeseen
According to the policy, the provision of money in the economy as an effect of increasing or decreasing the inflation rate, thus, the side effect of money supply on the economy can be monitored and the inflation effect associated with the policy should be check by reducing the money supply to the economy (Hoag & Hoag, 2006). . The demand and supply of money in the economy depends on the interest rate of the country. An interest rate of almost zero suggests that the demand for money in the economy by investors is slight. Thus, the production of the economy is very small. From the supply side means the economy is full of money already therefore the policy necessary by monetary is to reduce the money supply by raising interest rate of the central bank and selling treasury bills and treasury bonds to the public.
Pension Plans By Tay’veun Glenn Introduction Pensions are known as a retirement account that most employers maintain to give employees who have stayed with the company a payout upon retirement. Most employers give recipients of pension accounts a choice between a lump-sum payment or monthly annuity payments that are based upon the amount of time that the employee worked and their final salary prior to leaving the company. There are different types of pension plans and the use of each one is dependent on the employer. The Governmental Accounting Standards Board and Financial Accounting Standards Board both have to report pensions and have designated different ways to account for it.
The Bank was to act as a depository for federal funds and paid national debts, but it was answerable only to the directors and stockholders. The supporters of this bank were mainly people involved in the industrial and commercial ventures. On the other
The cases of intentional inflation have been so bad especially in Korea, housing prices rose by a few hundred percent over the past decade (Kotkin), that the middle-aged workers have to work decades just to save up for a house. There have also been a lot of scandals where estate owners would make secret deals in order to raise the price of a certain area together. These market manipulations are ruining the middle class because each house purchase could potentially end as a bankruptcy (Knapton) as it just simple costs too much. This means that the middle class can no longer properly afford houses and thus they are required to live in their parent’s basements until the day when they are able to buy a house. Even if these inflations were supposed to be natural, it is abnormal for the supposedly middle class to have such little buying power with their salaries, when the buying power of the middle class decreases it is usually an indication of a dying middle class since it signifies less money in circulation.
Savings: Client was instructed to adhere to savings plan, she is expected to save at least 50% of her weekly income and submit proof. Client was also recommended to open a bank account and to submit her bank statement as a proof of income. Medical: Client has no medical appointment to report at this present moment.
The question is; which option should I choose? The value of each alternative is revealed by using the present value concept for cash, as well as, for an annuity. Additionally; the current interest rate, number of payment years, and, the future value of cash payments, are considerations used in the calculation.
Since the creation of the Federal Reserve, inflation has been a persistent, ongoing problem within the United States (Durden, 2013). Since the Federal Reserve is owned by the banks, it is not surprising that it serves the interests of the bank over the American population, and therefore goes against the idea of a free market and biblical principles (Durden, 2013). The value of money is constantly changing and it subject to manipulation by the Federal Reserve. For example, the Federal Reserve can randomly produce money, and add it to the money system, which devalues the currency already in place, and adds to inflation. This is one reason why the value of the U.S. dollar has fallen by 83 percent since 1970 (Durden, 2013).
The third part is monthly projects, such as monitoring PI’s patents and maintaining PI Portfolio Master Database; another is department 's finance work, such as a part of budget forecast and interacting with outside counsel for forecast,
Inflation is the rate at which the general level of prices for goods and services is rising, and, then purchasing power falling over a period of time. When price level rises, dollar buys fewer goods and services. Therefore, inflation results in loss of value of money.
Along these lines, unemployment may decrease, as this has different favorable circumstances, for example, lower government using on profits and less social issues. However, this phenomenon includes a number of different expenses. Firstly, if economic growth is unsustainable and is higher than the long run pattern rate, inflations are liable to be seen. An increase in economic growth could prompt an equalization of issued installments. In case the expanded customer expenditure causes further development, there will be an increase in the import sector.
CHAPTER 2 LITERATURE REVIEW INFLATION (InvestorWords, 2015) stated that inflation is the increase in the general price level of goods and services in economy, normally caused by excess supply of money. Inflation usually measured by the Consumer Price Index (CPI). When the cost of producing goods and services goes up, the purchasing power of dollar will decrease. A customer will not be able to purchase the same goods and services as he/she previously could.
Self -Reflection on Module 8.2a Financial Management Before the commencement of the sub-module 8.2, we were supposed to choice either 8.2a (Financial Management) or 8.2b (Investing Social Security Reserves), because the sub-module is divided into two. I have decided to take the sub-module 8.2a, and during online VC sessions, I have had gained some basic knowledge from this subject (Financial Management). For me, this is the first time I had chance to learn about the subject, before that I have just heard some information about financial management only from a friend who studied Accounting and working as Auditor at Association of Chartered Certified Accountants (ACCA) consultancy in Ethiopia. From the beginning I am so much eager and impressed
Sinking fund provision: Risky for issuer and the relatively safe for the investor. C) an asset value is the present value of its expected future cash flows D) By calculating the stream of requiring interest payment +return of par at maturity. By using a financial calculator I input :
1- Investment decision 2- Financing decision, 3- Assets Management decision.
The first step to take before jumping into the process of saving your money is setting your saving goal. If you have something