Identify five key economic variables that could represent major opportunities or threats to a bank in your town or city. Identify which that you believe to be most important, and describe at least one strategic response.© BrainMass Inc. brainmass.com October 25, 2018, 9:44 am ad1c9bdddf
There are key economic variables that could pose opportunities or threats to banks in any town or city. These are inflation, unemployment, recession, economic boom, and exchange rate.
Inflation is "an increase in the general price level, and is typically expressed as an annual percentage rate of change" (Santoni, 1986).
The same study by Santoni (1986) found out that any unexpected resurgence in inflation would be harmful to banks. The real value of bank deposits will be rendered devalued during inflationary period. Depositors will shy away from banks. Investors will shun bank loans during this period resulting to bank run and possibly bank closure.
Unemployment creates ripple effect in the banking sector. A high ...
This is a 375 word discussion that summarizes the impact of five key economic variables to banks.
Capital Budgeting and Sensitivity Analysis Paper
In this assignment, Bigtime Conglomerate is making a decision to acquire BG Enterprises. The learner will review and modify, as necessary, the model for the Capital Budget and perform two sensitivity analyses of the data. The learner will write a paper that summarizes the changes in the model based on changes made, contrast the two analyses, correlate the purchase to internal competencies, and detail how the analyses affect the decision to acquire BG Enterprises.
Use the following information to ensure successful completion of the assignment:
Refer to "Example of Capital Budgeting Model."
Refer to "Capital Budgeting Model."
This assignment requires that at least two additional scholarly research sources related to this topic, and at least one in-text citation from each source be included.
Use the "Capital Budgeting Model" file and the instructions noted within the file to do the following:
1) Complete the capital budgeting model using "Capital Budgeting Model."
2) Perform two types of sensitivity analysis.
Write a paper (1,250-1,500 words) contrasting the sensitivity analysis types used, summarizing how results adjust, and detailing how your analyses affect decision making. Include the following in your paper:
1. Offer a research-based contrast of and rationale for the sensitivity analysis types used and the results achieved by each.
2. Summarize how the model results adjust to changes in key input variables.
3. Summarize market conditions that support or oppose the acquisition.
4. In your conclusion, detail how the data gathered affect the decision to acquire BG Enterprises.
I have finished this assignment on my own but I felt lost the entire time. My instructor is not readily available for help and I couldn't schedule a tutor before the paper is due. I just want something to compare my assignment to from someone that understands the instructions.View Full Posting Details