Question 1 Whenever the inflation rate is below the expected limit, the real interest rate increases to high levels than expected. For instance, the market equilibrium is expected to have a 3% real interest rate whenever marketers expect inflation to hit 4%. As such, the nominal interest rate tends to increase by up to 7%. However, if the inflation rate is 2%, the real interest rate is 5%, which is as a result of subtracting the 7% from the 2% inflation rate. In this case, the real interest rate is beyond the expected limit; thus, the leader tends to gain while the borrower loses. The Global Financial Crisis was characterized by homeowners who had invested in fixed-rate mortgages. However, in the mid-2000s, the homeowners having fixed mortgages lost to pay high-interest rates. On the other hand, banks that have had the mortgages benefited due to the low than expected inflation rates experienced in the markets. Expecting a higher inflation rate provides the best opportunity to align the mortgage rates. However, the difference between the variable rates and fixed rate is…

Name Supervisor Course Date Importance of Commercial Banking Commercial banks are an indispensable element of any functioning market economy. Commercial banks facilitate a transfer of payments in private households, companies, and government entities. As cash only plays a minor role in our everyday lives, banks organize a large part of our monetary dealings through electronic transactions. The purpose is for the exchange of economic goods and services for zero money or the settling of financial obligations. Companies pay wages, taxes, and contributions to social insurance systems suppliers’ invoices, and make other transactions. Electronically, private households transfer rents and pay their bills. Everything we pay is debited from our accounts. All of these money flows are made possible through the bank’s transfer of payments. Banks act as financial intermediaries for people and businesses that save money and those that also need loans. In this context, commercial banks fulfill several functions. Their most important tasks as intermediaries are the pooling of assets, maturity transformation, and the risk transformation for savers and providers of capital on the one side and borrowers and investors…

          ATF Regulations and Current Events Pushing to Change Them Student Institution Date                             ATF Regulations and Current Events Pushing to Change Them The gun violence burden is significantly high for the urban areas in America. Braga et al. (2012) observe that gunfire kills thousands of Americans annually, with hundreds of thousands more facing injuries and gun threats in assaults and robberies. The supply of firearms that fall into the wrong hands contributes substantially to serious gun violence. Statistics indicate that only one in six firearms used in crime was acquired legally, and a relatively small number of very active criminals commit most of the serious gun violence (Braga et al., 2012). Irvin et al. (2014) note that the current federal regulations and enforcement practices curtail the ability of the federal government to deter the sales of illegal firearms effectively by licensed dealers. Consequently, states have enacted their laws and established an additional layer to effect gun control oversight. The gun dealer procedures…

Merging Organization Culture The change management challenges For one, organization culture can become challenging to merge, especially for employees joining the mother organization. During such a change, the employees may find it challenging to adapt to the new culture or simply resist (Managing Change, 2009). Another concern is about retaining employees. A new organization may downsize the operation of the acquired firm to optimize performance. The organization will find it hard to retain the remaining workforce. The second challenge is that the quality of customer service and the competitive edge of the brand may vanish during such a change. This is because the new organization may become too big and lose touch with its customers. Customer’s concerns about the merger However, for customers of Canada Trust, an acquisition causes a change in the organization’s culture as they have to adapt to TD’s culture. The level of customer service may be affected because TD’s strength is not in customer service but enhancing sales and having a robust banking presence (Jackson, 2018). For one, Canada Trust’s branches have been reduced, which further…

The threats and the disadvantages of quantum computers and cybersecurity Introduction The development of new generation computers that can solve complex scientific problems depends on quantum mechanics to unlock every single digital vault globally. Quantum mechanics has been behind the idea of quantum computing which will be able to perform computations in seconds that have taken years for conventional computers. These computers will enable improved weather forecasting, logistical planning, financial analysis, a simplified approach towards searching for earthlike planets and discovering new drugs. However, despite this advantage that is presented by quantum computers, they will compromise bank records, passwords on computers and private communication globally. This compromise is because modern cryptography has been based on encoding data that is in large numerical combinations and quantum computers have the potential to guess these numbers instantly. Expectations on quantum computing will be revolutionary, as expected, however, so far and in the future, there are some threats and disadvantages on cybersecurity. The purpose of this paper is to assess the foreseeable and existing risks and disadvantages of quantum computers and cybersecurity. Quantum Computers…