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On Line Shopping RIghts

]]> On-Line Shopping Rights Are you shopping early for Christmas and using internet suppliers? If you buy on-line your rights are a bit different to those you get when buying from a shop. Delivery Issues Always check the promised delivery times on the web site. If no delivery time is given then delivery should be within 30 days. If your…

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Reforms To Banking Sector

Readers Question: Creating a post recession; what steps should the EU take to reform the banking sector? I have looked at this important issue in this essay: – Steps to Avoid Financial Crisis Reforms To The Banking Sector Could Include: Regulation of Mortgage Products Unconventional Mortgages like 100% mortgages, self-certification, interest only, mortgages several times income, contributed to the boom in housing markets and the asset bubble. Also, these mortgage products make mortgage default more likely when circumstances change. The real problem with mortgage default was in America which had the least…

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Richest Man in World 2010

There’s always a fascination with the richest people in the world. Apparently, according to Forbes, the richest person in the world is now a Mexican called Carlo Slim Helu. According to IMF statistics, his wealth of $53.5bn is roughly equal to the GDP of both Sudan $57bn and Slovenia $54bn (ranked 69th in list of GDP by country 2008) Updated 01/01/2011 Top 10 Richest Men in the World Carlo Slim Helu – Mexico $53.5 billion, up $18.5 billion in 12 months. Shares of America Movil (oil) Bill Gates, US $53…

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How To Increase the Supply of Money

Readers Question: how will central bank may increase the supply of money in economy? The money supply is the total amount of money available in the economy at a particular point in time. A narrow definition of money involves notes and coins. A broader definition includes cash plus bank and building society deposits. Policies to Increase Money Supply Print Money. Central Banks can decide to print more notes and coins. This increases the money stock in a direct way. Reserve Ratio. Central Banks can make commercial banks keep a certain reserve ratio e.g….

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National Debt FAQ

Definition of National Debt and National debt in the UK – National debt is essentially the total amount the government has borrowed from the private sector Should we worry about UK’s current situation? – Essay on reasons to worry and reasons not to worry Understanding Government debt statistics – History of National Debt – National debt is not a new thing. It has been much higher in the nineteenth century and 1940s/50s Who Owns Government debt? – Mainly private financial organisations – pension funds, investment trusts, personal investors….

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Revising Economic Statistics

Readers Question: Does growth forecast always corresponds to the mesured growth? If a bias exist, is it always on the same side? Recently, growth statistics published on February 26th showed that the GDP figures for the fourth quarter of 2009 were a higher than first recorded. GDP grew by 0.3%, rather than the initial estimate of 0.1%. However, the growth was from a lower base, though, and the cumulative loss of output to the trough in the third quarter was revised down to – 6.2% from – 6.0%. This shows that economic…

Why Do Countries Run Deficits?

Why Do Countries Run Deficits?

Readers Question: Why Do Countries Run Deficits? (what about planned economies) Can an economy function without it if it refused to borrow to smooth out recession or to fund whatever it finds to have a public value worth going into debt for. Reasons for Deficits include: 1. To Finance Investment in Public Services 2. Counter Cyclical Demand Management – borrow in recessions 3. Political Pressures 4. War 1. Investment A justification for government borrowing is to finance investment in public services. If governments borrow to build infrastructure like roads and railways it is investing in…