Q 11.38: A regional bank has an objective of increasing lending, with a target of a $1,000,000 increase during 2015. In conjunction with this objective, it wants to decrease the interest rate charged for loans and to advertise the decreased rate. It also plans to monitor the demand for loans and make further interest rate adjustments if needed. All of these objectives, initiatives, and measures lead to its financial goal, which is to increase margins. This integrated plan, with one objective leading to another, is an example of A a strategy map a strategic initiative the internal business processes perspective D a balance scorecard
Functions of the Federal Reserve System
The Federal Reserve System looks after the financial activities and operations of the banking system. It is the apex body that has complete control over the banking regulations. All the guidelines regarding the banking system, money supply, and formulation of the monetary policy come under the purview of the Federal Reserve System. The New York Fed also helps in drafting the monetary policy and supervising the financial system.
Elastic and Inelastic Markets
Measuring the change in percentage of an economic variable with respect to change in a different economic variable is known as elasticity. This change in percentage results in a change in price concerning changes in other factors. In simple terms, when one factor brings a change to another factor, it is called elasticity.
Step by step
Solved in 3 steps
