Money Transactions Essay Example | Topics and Well Written Essays - 2500 words

Money Transactions - Essay Example While focusing specifically on the transactions demand of money, this paper is aimed at examining the relationship between the interest rate and money demand in the context of a general assumption held by the financial experts that the transactions demand for money may be interest elastic. In this regard the issues related with the interest elasticity of transactions demand for money are discussed to have deep understanding of the issue. In order to find out the evidences about the interest elasticity of the transactions demand for money it is imperative to have deep understanding of the concept of transactions demand for money and its relationship with interest rate within a market. The transactions demand for money could be denoted by M or Lt that refers to the volume of money that is required to meet the financial expenditures. The equation of exchange is a crucial element for the transactions demand of money. According to the equation of exchange M * v = P * Y. In this equation the Lt or M stands for the transactions demand for money, v is the velocity of the money, P refers to the GDP deflator whereas Y represents the real income. The relationship between the transactions demand fo... ionship between the transactions demand for money and the interest rate possesses great important from the perspective that states that there is a pressure to economize on one's transactional case balance and this pressure is originated from the rate of interest. The holders of the transactions money used to buy bonds and also pay fee and brokerage services and as a result they expect high return on their money due to interest rate. In a market the higher is the interest, the more people get as a final return for their money. Due to this reason most of the households use the transaction money to get benefit from the high rates of interest and for this purpose they make investments in bonds etc. (Nouriel Backus, p6, 1998) The relationship between transaction money demand and interest rates has been a major concern for the economists for a long period of time. The transactions demand is believed to be interest elastic because the interest rate and the transactions demand are closely linked with each other. The holder of the cash strived to take maximum benefit from the money he holds and in such situation the equilibrium balance of money is held. In the transactions demand of money the holder has to deal with the Marginal cost as well as with the Marginal revenues. The marginal cost is the interest that has to be certainly paid by the holder and the marginal revenue is the psychological interest rate that is earned by the holder of money due to overcoming the worries that he might face about non having cash money in hand. It is believed by he economists that the more income a person earns, the more cash he might holds and more he became in a position to afford the loss of interest (Robert, p2, 2007). There are two important implications associated with interest

Managing in an IS Environment Case Study Example | Topics and Well Written Essays - 1500 words

Managing in an IS Environment - Case Study Example Alex has also engaged in monitoring the daily routine work so as to make sure that all things are done in a standardised way. Alex is also involved in interaction with people in form of scheduled meetings to discuss the daily issues with the regional manager. Alex also communicates through telephone conversations usually with suppliers about orders and deliveries. The unscheduled meetings are mainly either brief exchanges with customers as they pay their bill or they are interruptions from staff - requests for information or assistance. Alex doesn't perform any type of decisional role in his job. Because his job is predominantly one of routine paperwork and helping out' to the staff members. Rose who is a manager of domestic service unit is responsible for the cleaning and housekeeping of a large National Health hospital plays various managerial roles while on job. Rose is involved in a little bit of office paper work to manage the hospitals legal documents and other important documents. She is involved in lot of external work for the hospital. She spends a significant amount of her time out of the office, either at meetings or touring the hospital, speaking to domestics, nurses or administrative staff and checking the progress and quality of work. She also plays her informational role while monitoring the day to day activities of her staff members that all the work is done accordingly and the quality is maintainted well. She also helds scheduled meetings like committee meetings, policy meetings or negotiations, involving a wide variety of people, and unscheduled meetings or conversations - with domestic, nursing and administrative staff. As a decisional role she is eng aged in negotiations with the different authority levels of the hospital and is involved in seeking out people to obtain or give information, to deal with problems and to request or give assistance. Stewart's Demands, Constraints and Choices' Model: ALEX Alex is bounded by certain demands that he has to fulfil while on job that includes Ordering and controlling materials, Controlling money, Monitoring operational performance, Maintaining company quality standards, Planning and maintaining staff levels. These are some of the most important demands of Alex job. Along with it he has certain contraints given the number of rules and procedures within which alex has to work like standard menus and prices, methods of food preparation and presentation and etc. That's why he make choices according to situation and does spend much of his time in office doing paper work. ROSE Rose is bounded my certain important tasks that she has to do which includes Planning and ensuring staff level, Good industrial relations, Standard of cleanliness, Cost of domestic service function and etc. Although there are many constraints that she faces in day to day activities like Atmospheric crisis and uncertainity, restructuring issues is what must peoccupy her she has many restictions from within the organizations from different factors. But although she makes considerable choices about how she handles it. She chooses to make the job people-oriented and political', trying to reconcile competing interests, ameliorating the impact of change on domestic staff. The Internal Environment ALEX Alex is influenced by many factors of the organizations internal