High Powered Money Multiplier to Credit Creation Essay

High Powered Money Multiplier to Credit Creation - Essay Example The high power money multiplier is based on some assumptions, partial fulfillment and non-fulfillment which impact on income generations. Some of the assumptions include; the supply of goods should be adequate, level of investment should be maintained, the economy should be closed and unchanged marginal propensity to consume. High power multiplier has both advantages and limitations to the economy. When money is deposited into the bank by clients, the money is usually given out to other people in need of loans. The bank ends up getting interests in return. The rule associated with banking usually allows them to set aside some money referred to as reserve. The capital set aside by the bank is important in ensuring the daily cash needs of the bank are met (Steindl, 2010). It also ensures the depositors who come back to the bank to withdraw their money are accounted for. Such kind of banking is known as fractional reserve banking. Due to the reason of loaning out that the depositors’ funds by the company, a money multiplier effect usually result. To an individual the benefits are also withstanding. Through money multiplier an individual is able to acquire a loan from the bank for the purpose of expanding his business. The bank also offers protection and security to the deposited money. The high power money multiplier can aid in capital leverage. It ensures for example, the bank is able to make a lot of money out of the little money spent at the start. The individuals too are able to benefit (Bomhoff, 2008). If 10% is the reserve requirement, a bank may lend out $90 of $100 deposited by the customer. The $ 90 can also be lent to someone else who deposits the same amount to the next bank. The bank in receivership can lend out $81 dollars of the am ount deposited. The initial deposit of $100 can be expanded through the banking system as the process proceeds.  

International Students Essay Example | Topics and Well Written Essays - 1000 words

International Students - Essay Example These students' first language is Arabic and they were selected in their respective states for tuition at this college. As getting into Salisbury college was not a decision made by these individuals themselves hence they did not follow the normal procedure of submitting an application, which would have involved contact with Student Services, which would have helped them arrange their visas, police registration and other details. Due to all this they have several issues that includes isolation as their level of English is poor, no arrangements made to have them interacting with the other students of the college. This also reflects from their behavior at the college. This research proposal will notify the appropriate way to handle these students and will help in finding out the main causes of their problems and how to solve them. It will also help in finding out what ethical issues are arising while implying the rules and regulations that are implied on any international student at Salisbury College. The research philosophy of this project would be making it more quantitative rather than being qualitative. There are several reasons for this philosophy. The major reason being that it would be difficult to communicate with the students as their English is weak i.e. communicating with them would be not very easy and a conflict might arise in what they are telling and what we interpret. Therefore, analysing numeric data and leaving non-quantitative data would be more meaningful and applicable for further and future research. However, the utilization of all numeric data would also have certain issues, hence qualitative data will also be analysed. Another reason for emphasizing on numeric data is because all qualitative data leads to difficulty in comprehension and analyses, and thus, the conclusions and outcome becomes highly judgmental in nature. The judgmental approach may reveal biased outcome based on the observer knowledge and expertise. Methodology The data collection methodology would comprise of both the secondary published data along with the primary data thus the research would be a comprehensive mixture of primary and secondary research resources. The secondary research would not just include the journal data but also the published books available on the topic as well as the articles and other research data that has been written across the world on the topic. Different methods used by different international colleges will also be studied in order to get the clearest picture of the scenario. The primary data would be collected by conducting interviews, making the students fill out simple close-ended questionnaires