Tools of Monetary Policy Assignment Example | Topics and Well Written Essays - 2500 words

Tools of Monetary Policy - Assignment Example If the required reserve ratio was increased for these big banks they would hold more deposits and lend few. This would not hold the problem at hand as these banks are too big to suffer from search changes (The Editorial Board). The increase would lead rather to a decrease in the money supply and thus the public would suffer as this would lead to an increase in interest rates. Graph 1 The graph above illustrates and demonstrates a decrease in the money supply, which leads to the increased interest rates. An open market operations Open market operation is the buying and selling of government securities in the open market through the Central Bank of a given country. If there is excess money in the economy or rather inflation, and the government wants to reduce this amount, it will sell its securities to the public. The money obtained is used to develop other sectors of the economy or to invest in investments with high returns (The Editorial Board). If, on the other hand, there is little money in the economy, the government will buy these securities from the public to increase money in the economy. To ensure this, the government has ensured that the public has information about these securities and are educated on their importance in the economy at large. Graph 2 According to the graph above increase in money supply (ms) from (Ms0) to (Ms1) the increase, in essence, leads to a decrease in interest rate (r). Interest rate policy For the central bank to control the flow of money in the economy besides bank rate and cash reserve ratio, the central bank can directly influence the economy by increasing or reducing the interest rates. An increase in interest rate causes an increase in money demand, in the economy. This would be the best choice in an economy that wants to favour capital investment. The author is insisting on a change of laws whereas in a free market there are already flexible policies that can aid in protecting the individuals. As illustrated above when t he interest rates are low the people are encouraged to borrow from the bank since it is cheap, when they borrow they use the money to buy bonds, and for other capital investments the central bank interferes by increasing the bank interest rate to reduce the demand for bonds, in essence, the money demand shifts from MD1 to MD2. 2. What role did weak financial regulation and supervision play in causing the 2007-2009 financial crises? Financial regulation refers to the laws and rules that are set by the government of a particular country to govern the financial institutions like the banks and other investment companies. It is majorly done to ensure financial stability in the financial system thus ensuring that funds flow smoothly between investors and savers. This will, in turn, lead to economic growth. The laws also ensure that there is minimized the rate of financial crime by doing away with illegal businesses in the financial system. This has made the public have confidence in the f inancial system since they are sure that their businesses are legal and whatever the returns the get is transparent. Lastly, financial regulation has helped in increasing information to investors, and this has helped in the reduction of both adverse selection and moral hazard problems. A financial crisis takes place when there is a large interference to the flow of information in the financial markets, and this makes the financial system not to function properly.     Ã‚  

Network technologies and system administration Assignment

Network technologies and system administration - Assignment Example Transmission media is very important in the transmission of signals. For the transmission of the signal copper wires are being in utilization for many years however, as the technology regarding the transmission media developed, wireless technologies got the importance as wireless technologies require less management and lack the burden of wires. In a wired transmission system, digital signals are utilized in the transmission, where various voltage levels are considered to be binary zero and binary one (Omega.com, np). The signal is then transmitted to the copper wire as the voltage signals and a reference voltage is also transmitted. At the other side the transmitted signal is received and the reference voltage signal is created and thus the wired transmission and reception system works. In wired communication twisted pair, coaxial cable and optic fiber cables are utilized. However, optic fiber cable does not come in the category of copper wire and signal is transmitted in the form o f light. The major problem that arises in the transmission of signal through the wired medium is that the copper wires are much influenced by the electromagnetic energy and thus a distorted signal is received due to the interference of the electromagnetic radiations. These electromagnetic radiations are produced by the electrical appliances and transmission lines near the signal wire. This type of problem is more in twisted pair cable as compared to the coaxial cable. However, the twists in the cable help minimize the interference. Another problem with the wired transmission is the difficulty in the management and detection of problem (Polenin, np). There is a need to replace the whole cable if a little defect in the cable arises like small cuts, etc. In order to eliminate the problems of the electromagnetic interference, a pair cable is twisted to reduce the interference. Boosters are utilized at after some fair distances to recover the distorted signals to the original signals. Bo osters also amplify the signals to the desired amplification. In the coaxial cable, metal shielding prevents the loss of the signal and avoids electromagnetic interference. However, the outer insulation is such made to prevent environmental damage and the preventions against cuts, etc. Ethernet is a part of computer networking technology for local area network which is commercially started in 1980. It is consisted of IEE 802.3, LAN technology. In the OSI orientation arrangement, Ethernet is at the data link layer. Ethernet distributes a flow of information through packets which, are known as frames. Each frame consists of source and destination dresses and error checking data so that damaged data can be easily identified and rebroadcasted (Pidgeon, np). As we have discussed data packet on the wire is known as a frame. A frame initiates with the preamble and start frame delimiter. First advantage is that it is conceptually it is simple like it has coax cable and T adapters and no hub s, transceivers and other devices. It is less price device. There is a high level of noise immunity. Disadvantages are Ethernet is difficult to change. Its configurations are not edited easily. If any device or cable section fails, is demolishes the entire network. Ethernet frame is also called as Ethernet link. In the frame structure, octets are distributed to make the Ethernet do its job in a right way. For example, the frame allocated seven octets to the Preamble from 10101010, preamble have the responsibility to synchronize clocks or receiver and sender. For addresses, all adapters receive the frame on LAN at 6 byte. The frame structure type is utilized to identify the higher layer protocol. At receiver, frame is checked for error, if there is any errors present the frame dropped. The MAC Destination takes about 6 octets, MAC source takes about 6 octets, payload takes octets from the rage of 45 to 1500 and inter-frame gap takes about 12 octets. An