Economy 320 Money and Banking Essay

The Federal Open market Committee has twelve voting members. Seven of these members are the board of governors who are appointed by the president and serve for terms that are fourteen years long. The appointment has to be approved by the senate. The reason as to why the terms are long is so that the committee can be freed from presidential and political influence. The years also end on 31st of every even year eliminating the possibility of a president appointing a majority of the board in their four year terms. The board members are permanent voters and vote every time the exercise is carried out. One of the remaining five positions is filled by the president of the Federal Reserve Bank of New York who is a permanent voter while the rest of the positions are filled by the remaining eleven Federal Reserve Banks on a rotation basis. These include the Reserve Federal Banks of Cleveland, Boston, Chicago, Philadelphia, Dallas, St. Louis, Atlanta, Richmond, Kansas City, San Francisco and Minneapolis. Chicago and Cleveland vote alternatively (vote once in every two years) while the rest of nine Reserve Banks vote after every two years (vote once in three years). This committee is important as it functions to formulate and regulate monetary policy for the country’s Federal Reserve System . which describes the actions implemented by the central bank. The committee also determines the capability of the Federal Reserve joining the Treasury department in the intervention of foreign exchange. It is important to note that the Federal Reserve is in charge of the monetary policy tools which include discount rate and the reserve requirements which are controlled by the board of governors of the Federal Reserve System. The third tool which is market operations is the third tool controlled by the Open Market Committee. Where does the power lie within this committee? The power lies with the president of the Federal Reserve Bank of New York. The New York Fed also acts as the vice chairman to the committee and is a permanent voting member. In the event he is not present during a voting session, his place can not be taken by another Fed, rather, one of his vice presidents votes in his place. This is because the New York Fed plays an important role in the system such as carrying out intervention in the foreign exchange market in the event it is required and conducting all the open market operations for the Federal Reserve. 2. If the Fed lends five banks an additional total of $100 million but depositors withdraw $50 million and hold it as currency, what happens to reserves and the monetary base? From the above question, there will an increase in the Reserves by $50 million, while the MB (Money base) is increased by $100 million. Banks Balance Sheet Assets Liabilities Reserves +$50 M Discount loans +$100 M Deposits -$50 M -$50 M Balance Sheet of Fed Assets Liabilities Discount loans + $100M Reserves +$ 50M Currency +$50M 3. What are the advantages AND disadvantages of inflation targeting? Advantages Inflation targeting unlike exchange rate peg makes it possible for the monetary policy to focus and concentrate on domestic considerations that need to be addressed and respond appropriately shocks that are affecting the domestic economy. When compared to money targeting, inflation targeting is advantageous in that its success is not hampered to a great extend by the stability in the relationship between money and inflation (Mishkin, 2007). This is because instead of depending on such relationships, it utilizes all the information that is available in determining the best strategy and settings for the monetary policy tools. Inflation targeting is also easy to explain to the public as it can easily be understood enhancing transparency. This increases accountability on the central bank’s part (Mishkin, 2007). It also makes it possible to eliminate the possibility of the central bank falling into traps such as time-inconsistency because of the enhanced transparency. Eliminating time-inconsistency which is usually caused by central bank being politically pressured to undertake monetary policy that is overly expansionary makes it possible for inflation targeting to focus and concentrate on political debate that is directed towards what the steps the central bank can take to address issues such as unemployment, increase output growth and external competitiveness through formulations of the monetary policy (Mishkin, 2007). Disadvantages Inflation targeting is associated with some disadvantages as a monetary policy strategy. The method is argued to be too rigid such that it has no allowance for changes in the event they need to be done fast. The method is also said to have the potential of allowing discretion which is not good as it hinders transparency hence accountability of the central bank (Mishkin, 2007). The strategy also feared to be capable of lowering the rate of economic growth as it has the potential of increasing the output instability. Inflation targeting is also argued by critics to only be able to produce weak accountability on the part of the central bank because of the fact that inflation can not easily be controlled and also because of the long lags that exist from the monetary policy tools to the outcome of the inflation. This is a serious problem specifically for countries that have emerging markets. Inflation targeting is also said to be incapable of preventing fiscal dominance (Mishkin, 2007). The exchange rate flexibility that must exist for the inflation targeting to be function can result to financial instability which is very crucial for emerging market countries. 4. You often read in the newspaper that the Fed has just lowered the discount rate. Does this signal that the Fed is moving to a more expansionary monetary policy? Why? One of the instruments used by the Fed to formulate the monetary policies is discount rate. This is the interest charged on loans given to depository institution by the Federal Reserve Bank. This interest is the only one Fed usually charges. Banks usually loan each other money and would not go to the Fed under normal circumstances. However during economic and financial crisis such as the current recession, most banks raise the interest charged on the loans they lend to other banks, in an effort to help banks especially the small ones which are not in a position to afford the high rates demanded by big banks, the Fed usually offer loans to these banks to enable them maintain the reserve requirement they need hence run their operations as usual. The interest rates on these loans are usually low making it easier for banks to borrow from the Fed what they need to remain in business. Market analysts and experts argue that as much as the Fed has the responsibility of lending money to banks in times of need, its announcement of lowered discount rate usually is an indication of a more expansionary monetary policy to come. This is because of the impact lowering discount rates have on the government’s finance. The effects are positive when well managed and if the country recovers quickly from the financial crises. This is because low discount rate is usually the last resort that banks turn to in the event of crises. A decline in interest rates also affects government finance. It is done to lower inflation rates as it increases the number of available projects at a cheap price attracting investors to invest so that there is no money floating around. This is based on the fact that the more money there is the higher the rate of inflation. Lowering the discount rate is hence signals another monetary policy on the way. 5. What happens to nominal GDP if the money supply grows by 20% but velocity declines by 30%? M*V = P*Y a %&? 916; PY = %&? 916; M + %&? 916; V = 20% – 30% = -10% If the money supply grows by 20% and the velocity decreases by 30%, the nominal GDP will decrease by 10 percent. 6. If Mexicans go on a spending spree and buy twice as much French perfume, Japanese TVs, English sweaters, Swiss watches, and Italian wine, what will happen to the value of the Mexican peso? This would result to a negative value being reported during the trading period as the imports will have exceeded the exports resulting to a trade deficit. This would have a great impact on the Mexico’s foreign exchange market. A trade deficit as the one described above, Mexico will have to convert its peso to the currencies of the countries it is importing from. Since it is buying from many countries in large amounts, the supply and presence of the peso will increase on the forex markets causing the peso to lose value as they will no demand for it. The value of Mexican peso would therefore decrease against the French, Japanese English, Swiss and Italian currencies (Mishkin, 2007). 7. If the money supply is 250 and nominal income is 1,900, the velocity of money is v= (P ? Y)/M Where v is velocity, P = price level Y = 1,900 M = 250 Since the price level is not given, velocity of money can also be calculated by dividing the GDP value with that one of money in circulation. Hence v = GDP/ money supply, v=1900/250 v=7. 6 8. What are the key advantages of exchange-rate targeting as a monetary policy strategy? The advantages associated with exchange-rate targeting are several. They include the fact that its nominal anchor is able to fix the rate of inflation of goods that are traded internationally. This enables the strategy to keep country’s inflation rate under control. A credible exchange rate target has the potential of anchoring the inflation expectations to the rate of the anchor country that has its currency pegged (Mishkin, 2007). Exchange rate target has the potential of eliminating the occurrence of time-inconsistency of the central bank if commitment is present as it provides rules of conduct that should be complied with. Exchange rate target strategy is alas simple and clear making it easier for the public to understand hence increasing transparency and accountability of the central bank (Mishkin, 2007). 9. If a pill were invented that made workers twice as productive but their wages did not change, what would happen to the position of the short-run aggregate supply curve? Aggregate supply is used to determine the volume of products (goods or services) produced in an economy at a certain given price level (Mishkin, 2007). The relationship between the aggregate supply and the general price level is such that an increase in price levels implies that the business has to expand and increase its production so as to meet the demand for its products. Increased demand hence results to expansion in the economy’s aggregate supply. Aggregate supply can also be described as the total amount of goods and services present in an economy at all possible (low or high) price levels (Mishkin, 2007). In the short run, nominal wages of employees does not change while production output increases. This implies higher profits. In the event the event the price levels rise, the short-run aggregate supply curve would have an upward sloping because the nominal wages are fixed while the output (production) is rising. However in the event the prices of the products were not increasing, this curve would remain horizontal (Mishkin, 2007). 10. Explain the law of one price and the theory of purchasing power parity. Why doesn’t the purchasing power parity explain all exchange rate movements? What factors determine long-run exchange rates? The law of one price postulates that for a market to be efficient, all goods that are identical in functionality should be sold at one price (Mishkin, 2007). This law is very closely related to the out comes of globalization and the different free trade areas and markets. It seeks to explain that in future, all countries and market areas in the world will earn the same amount of money for equal amount of work/service, product and their quality (Mishkin, 2007). This implies that all sellers will look for markets that have prevailing high prices while the buyers will flock to sellers that are offering low prices for the goods and services. This will force the sellers to converge and agree on one price for the goods. Purchasing-power parity is a theory that explains how the exchange rate is determined and provides a way of comparing the cost of goods and services amongst countries. It postulates that when domestic purchasing power of a country is equivalent to that of another one at a particular exchange rate then the exchange rate between their currencies will be at equilibrium (Mishkin, 2007). This takes form of the law f one price eventuality in which at some point in life it is considered that similar goods will have the same price irrespective of the location or country. Purchasing power parity does not explain all exchange rate movements because the comparisons used in the method have the potential of being misleading (Mishkin, 2007). Most comparisons are usually based on the living standards of the citizens of the countries in context. It is done through assumption that the real value of the goods and services is the same in both the countries being compared. This can however be misleading as cultures vary such that what is considered to be a luxury may not be the same in the other country. Purchasing power parity has no allowance for this diversity hence the exchange rate based on this method differs depending on the goods chosen for use for the index. The major factors that determine long-run exchange rates are inflation and expectations. This is because a change in the levels of money supply causes price levels to change. Inflation also causes increase in the nominal interest rate to its long run rate during the phase of transition. Expectations of inflation usually result to increase in the expected returns on the foreign currency causing domestic currency to lose value (depreciate) before the transition phase (Mishkin, 2007). Since rate of inflation is always on the increase due to the increase in growth rate of money supplies, nominal interest rate also increases. Other factors include yield differentials (difference in interest rates) in the various countries, the flow money/funds used for buying stocks and bonds, the countries’ public debts band the trade balance merchandise (Mishkin, 2007). Word count: 2400. Reference

Understanding Deviance and the Criminal Justice System

Deviance has been one of the most apparent behaviors or actions of people who commit and engage themselves in violent crimes. By thoroughly understanding its delineated characterization in John J. Macionis’ Sociology, this behavior in most cases violates the established cultural norms which include lawfully enacted rules and even informal defiance of social customs (Chapter 9). The criminal justice system continuously reforms its standards and practices to efficiently maintain social control and crime to carry out proper sanctioning of people who infringe the law.The foremost goal of each society’s correctional theory is to furnish preclusion to the deviant behaviors of some citizens. The success of the current criminal justice system has been in great argument due to the fact that several people who had spent some time in state prison or jail did not change their whole being to the betterment of themselves and the society. The correctional system faces diverse issues a nd challenges in organizing and operating jails in coping up to the above concerns.The facilities and design of the prison are very significant to exhibit a detention cell that can accommodate the necessities of the prisoners but also administer incarceration and imprisonment to the highest level. Though, modern prison cells and jails are now proficient to progressively prohibit the movements of the prisoners in the facility while providing utmost level of direct custody, the overcapacity of prisoners give way to the utilization of other large buildings like gymnasiums to house huge number of offenders which almost establish likely as dormitories rather than prisons.This might be seen as a straight opposition to the punishment that the law offenders should received, and so make them realize that jail is not as strict and as firm as it should be and going back to such state is not hard to accept when they commit another crime. Due to the possibility of former convicted people to do a nother offense once freed, the rehabilitation program has been sought as one of the major reforms to adhere at this moment. Efforts could greatly be provided to the reformation of not only the penal system but the individuals themselves.Successful and effectual imprisonment curriculum decreases the likelihood of another wrongdoing or recidivism in the future (Andrews and Bonta, 2003). This would also bestow a goal which will fix the deficiencies in the offender and bring them back to the society as a more productive citizen. Moreover, the rehabilitation program will provide the prisoners with work skills; education, proper decorum lessons and self discipline which will equip them with the most appropriate social skills when they step out of detention.Hirchi’s Control Theory discusses four main social controls that can be attached to the rehabilitation program. He conferred: Strong social attachments promote conformity. The more the offenders get access to the justifiable and legitimate opportunity, the greater the possibility of conformity. Deviance can be inhibited through extensive participation in legitimate activities. Deviance can be controlled through sturdy belief in conventional respect and morality for the authority (qtd. in Macionis, Chapter 9).Rehabilitation theories, however, received many arguments that need to be addressed when pursued and mainly incorporated to the penal system. One main issue is the non-availability of scientific research in determining the reaction levels of individuals who will undergo the rehabilitation. This is important in determining the success rate of the rehabilitation scheme. Another concern being raised is the method or philosophy to be utilized for the offender. Resources and funds for the program appear to be too costly and complicated to successfully implement.The complexities of the processes to be used are also being questioned. This is because a modification in the values or behavior of the offenders can traumatically change the behavioral structure of the individual. Though there are still many quandaries being raised, the rehabilitation reform can be practiced in the penal system with appropriate resources. Studies should also be developed in answering the queries being raised by people who believe that extending sentences and making the detention cells and prisons a less desirable place than it is today.The deterrence of crime through a more rigid and strict penal system is a broader path to take by the authorities rather than the rehabilitation program. This is because while offenders may have committed heinous or violent crimes, they are still human beings with rights to take in consideration at all times. Despite the fact that, prisoners are deprived of freedom, they are still fully entitled to their human rights.Furthermore, the criminal justice system’s main objective is defined by the President’s Commission as a stand for the society to â€Å"†enforce the standards of conduct necessary to protect individuals and the community. † Prison reform is far from being over. While crime is prevalent, a more effective penal system should also be utilized. The legal and penal system of a society provides a gauge into the government’s law and order to include morality, it is always best to seek reform for the betterment of the offenders rather than harder punishments that callous not only their individuality but also their souls.

A power amplifier

A power amplifier Introduction: A power amplifier is an electronic device that changes the magnitude of a signal. It is usually used to transfer high power to a low output load such as speakers where there load is about 8 ohms [1]. The relationship between the output and input is called the transfer function. An important aspect of the amplifier is the gain. The gain is the ratio between input and output whether this input is current, voltage or power. Therefore, the gain does not have a unit. The quality of the amplifier is determined by many aspects, which are gain, bandwidth, efficiency, linearity, noise and others. As one of these characteristics increase the others may decrease. Therefore, the amplifier will be designed to meet the required specifications determined by the application for which it will be used for. The various designs of the amplifiers are classified into many types which include A,B,C,D and some other types derived by combining the basic ones such as class AB which is obtained from class A and class B pertaining to their efficiency and linearity [1]. Ideally, power amplifiers are supposed to deliver 100% of the power to the load. However, as some of the power dissipates in the components of the amplifier, hence we do not have ideal power amplifiers. It is found that the linearity has an inverse relationship to the efficiency of the amplifier. The classes A, B and C power amplifiers are considered inefficient but linear whereas the other types are considered efficient but more complex than the basic types. Class A power amplifiers are least efficient than the others. The efficiency of class B is much higher than class A, however, class C has the highest efficiency level compared to class A and B [2]. The scope of this paper is to discuss class B power amplifier in details. Class B power amplifier: This class of amplifier was developed in order to improve class A power amplifiers, which have low efficiency rating. [1-3] shows and explains the internal desig n, the efficiency, the advantages and disadvantages, and the applications of class B power amplifiers. Internal circuit and operation: To get a sufficiently good amplification of the input waveform in the output, a push-pull class B power amplifier configuration must be used. This configuration is based on two transistors. The term push-pull comes from the fact that two transistors in a class B amplifier conduct in alternating half-cycles of the input [1]. Moreover, there are two types of push-pull configurations, one with transformers and one without transformers [2]. A balanced centre tapped input transformer is used to split the incoming waveform signal into two equal cycles that are 180 degrees out of phase with each other. Another center-tapped output transformer is used to recombine the signals. If the transformer is ideal we can get two collector currents that flow in opposite directions, hence no magnetization of the transformer core takes place which in turn minimizes the d istortion in between the two signals. Both transistors used are of NPN transistor type where their emitter terminals are connected together [2].

Kosovo & Serbia Essay Example | Topics and Well Written Essays - 1500 words

Kosovo & Serbia - Essay Example It was then that â€Å"the Slavonic tribes, mixed with the Avars, made their appearance in the Balkans, which was sparsely inhabited by many different tribes of the Illyrians, the Dardanians, the Thracians and probably others whose names have fallen into oblivion† (Almond, 1998). The present day hostility between Albanians and Serbians could be traced back to this period. Contemporary Albanians, who descended from the aforementioned tribal groups, were defeated in warfare by migrating Slavonic tribes. While some of the conquered were assimilated into Slavonic tribes, the rest took refuge in inaccessible geographic locations like mountain tops. The victorious Slavs on the other hand took control of the most fertile and irrigable lands in the region. Hence, the geography of the Balkans is an important aspect of ethnic rivalries there. â€Å"There is little doubt that the process of appropriating the possessions of the pre-existing population created a deeply felt resentment between those who lost their homes and their land and those who profited from the conquest. This hatred was transmitted from father to son over many generations and it became a constant factor in the relationship between the Serbs and the Albanians. Inherent to this feeling remained a strong desire to retake the lost areas if an opportunity appeared†. (Velebit, 1999) The other important historical development occurred during the twelfth and thirteenth centuries, when Serbian leader Nemanyitch made Kosovo his capital. This meant that Serbs who made Kosovo their home were forced out of this rich and fertile piece of geography. Serbian peasants suffered the most in the process. But the balance of power continued to change through the following centuries, with no particular ethnic group able to maintain dominance over other groups and geographic locations for long. Toward the end of the fourteenth century, some of the

Discuss the positive and negative effects of globalisation on China Essay

Discuss the positive and negative effects of globalisation on China - Essay Example Similarly leveraging of huge natural resources for the growth and development of the economy to be a powerful country in the world has been possible in the backdrop of globalization with economic reforms. The environmental impact due to global warming is very important from the international perspective and for sustainable development, because the economic development at the current level by exploiting the natural resources at this level is not sustainable in the long run. The Sustainable Development according Bruntland (1987) means â€Å"Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.† (The World Bank Group, 2001) Background The Chinese economy based on state owned industrial undertakings and collective communes, was ineffective in achieving the desired economic growth in the country which aspired to become a leading international power. The economic reforms introduced during the period of Deng Xi aoping in the late 1970s aimed at catching up with the developed countries gave a fillip to a system of decentralized market-based economy. Goodhart, C. and Xu, C. (1996, p. 34) state â€Å"Following the decision to open the economy, and to increase the role of market forces and reduce the burden of state subsidies on foreign trade losses (since the RMB was artificially overvalued), China began to decentralize its foreign trade and foreign exchange systems in 1979†. The country was successful in establishing the phenomenon of ‘regulated market economy’ without compromising political control of the party. Consequently the foreign direct investment into the country has grown significantly aiding the growth process over the period of time. Environmental Impact The issues related to environmental concerns such as greenhouse gas emissions and global warming in the negotiations at the international level has gathered momentum starting from Kyoto Protocol. China being t he world's largest greenhouse  gas emitter is constrained to take measures in line with the world opinion and committed to 40 to 45% reduction in CO2 emissions from 2005 level by 2020 in the recent Copenhagen Climate Change Summit in December 2009.   Finamore (2009) states â€Å"a carbon intensity target will require each province and major enterprise to measure, report and reduce their CO2 emissions and energy consumption, year-on-year, acting as a driver for greater efficiency and renewable†. The US and China as the major greenhouse gas emitters are expected by the world community to take proactive measures in containing the greenhouse gas emissions. Climate Ark (2007) states â€Å"The world faces a global warming disaster if the United States and China do not take decisive action to cut greenhouse gas emissions, a leading economist said at the U.N. â€Å" Evidence China Daily (2011) states that the new issue of the British "Nature" magazine published the first two st udies to draw definitive conclusions that human activity caused global warming is indeed global rainfall, snowfall intensity increased, an increase in natural disasters such as floods†. Unseasonal droughts, floods and other natural disasters have been closely associated with global warming. The social and environmental consequences of the industrial activities

Management Interview Research Paper Example | Topics and Well Written Essays - 1000 words

Management Interview - Research Paper Example Lloyd responded that management, according to him, is about administering the day to day functioning of the firm. This might include developing newer business plans, preparing budgets, and observing day to day functions. One the other hand, he believes that leadership means to guide in a particular direction. In other words, according to him, leadership is the relationship that the leader develops with the followers in order to energize them to take up the required changes. In order to make his statements more digestible, Mr. Lloyd offered an explanation. According to him, if his subordinates follow his orders because they have to do so according to the company rules, he is just a manger. On the other hand, if his subordinates are eager to hear to him and to follow him, or if he can bring in a change in his organization without the support of an order from the above, he is a leader. Similarly, Mr. Mark was of the opinion that subordinates follow leaders out of emotions. He says a lea der invokes various emotions in employees ranging from hope, fear, respect, and happiness and so on. According to him, while managers rule out of regulations, leaders rule out of aesthetic sense developed in subordinates. He pointed out the difference between his managerial and leadership roles. As a manger, there is planning, budgeting, evaluating, and facilitating functions. At the same time, as a leader, he identifies talents in various employees, utilize various ways of motivation including rewards, reason, and relationships, resorts to coaching to ensure that the employees remain motivated and convinced, and finally build trust so that implementation of various strategies are met with less criticism and doubt. When Mr. Mark was asked as to what are certain similarities between both, he was able to identify certain important similarities between them. The first one is that both management and leadership aim to achieve certain goals. According to him, the second similarity can be found in the fact that both management and leadership require subordinates to achieve the goals by motivating employees. The last point he could identify was that both leadership and management are ways to link the top management and subordinates. Then the question turned towards the management and leadership style Mr. Lloyd has adopted in his organization. It was surprising to note here that he believed in a combination of autocratic and paternalistic leadership styles. He pointed out the fact that though democratic approach can be much better in an organization where the manager would be able to discuss and decide the future course of action, in such a multinational organization which is highly centralized in nature where all the decisions come from the above, he does not have much room for practicing democratic way of leadership. In such cases, manager only acts as a supervisor to see that the changes are implemented, and there is no provision to discuss with the employees and t o get their opinions on the implementation. When I asked the question if he could not adopt bureaucratic approach instead, his reply was that this could make his position vulnerable as there is the chance of the staff challenging his authority. My next question was regarding certain organization development interventions Mr. Mark uses as a part of his OD role. The response was that he has incorporated survey feedback, sensitivity training, team building, and management objectives as ways of

Management Accounting Essay Example | Topics and Well Written Essays - 2000 words - 2

Management Accounting - Essay Example Traditionally, Airlines did not charge for the initial two pieces of luggage unless it exceeded the weight limitations imposed by the company. However, in the contemporary environment there is an accelerating trend of charging the customers with baggage fees. American Airline became the first major airline to impose a $15 fee on checked luggage which was soon matched by other companies. United Airlines recently begin charging its passengers $50 to check a second bag. The same policy was adopted by US Airways just after three weeks when United Airlines implemented the policy. Currently, most of the major airlines charge $15 to check one bag, $25 for a second bag and as much as $ 125 for a third bag with only exceptions include Southwest Airlines, JetBlue Airways and Alaska Air Group which allow transporting one bag for free. The baggage-fee frenzy has made many airline passengers wonder: Isnt luggage part of the service you get when you buy a ticket? Customers are astonished that what it actually costs these airlines to fly the 40 pound suitcase. Airlines are cognizant of the negative reactions sparked among the customers due to charges related to baggage fees. The trend has caused great annoyance among the customers but according to government sources these baggage related fees have become a boon for airline industry by saving billions of dollars for these cash deficient airlines. According to the US Department of Transportation, only baggage related fees from the US Airline Industry accounted to $1.15 Billion in year 2008 (Smith, 2009). According to the recent data, the companies in US Airline Industry collected $670 million only in baggage fees in the second quarter of year 2009 which is also a growth of 18.2% from the last quarter. It is estimated that only United Airlines will be able to earn more than $100 million on baggage related fees (CAPA, 2009). There are several reasons behind the math of baggage related fees. Firstly, in the

What were the major reasons for the collapse of the Soviet Union in Essay

What were the major reasons for the collapse of the Soviet Union in 1991 - Essay Example To begin with, the collapse of the Soviet Union was much a consequential effect of poor managerial aspects of the political system inexistence. Established in 1922 under Vladimir Lenin, Soviet Union was built on terror upon the larger citizenry, orchestrated by the Communist Party of the Soviet Union (CPSU) machinery engineered by Joseph Stalin, the party’s first General Secretary. Intolerant to any form of criticism, Stalin basically murdered millions opposed to his authoritarian nature of leadership; a style of leadership that would set the tone of communism for several decades, in effect, forcefully actualizing the acceptance of the Soviet Union’s governance with all the ills without questioning. In addition to his firm grip on the government machinery, his policy of dà ©tente basically cut off the Soviets from the world. His leadership was one of a kind that non-would have wanted to follow. Accordingly, long before Gorbachev’s assumed power in 1985, successi ve leadership beginning with Nikita Khrushchev-the immediate Stalin’s successor, made numerous changes; gradually losing the very fundamental facets of the Stalinist control (Dallin and Lapidise 675). As ideas from the west, spread in part by academics, begun reaching the masses, commitments to the Soviet Orthodoxy begun a fast downward trend; the exposure to the superior living standards in the west in addition to the political freedoms resulted in widespread jitters in the late seventies through to the Eighties ultimately forcing the introduction of Gorbachev’s ‘glasnost’ (Dallin and Lapidise 681). Instead of rectifying the hitherto growing dissatisfaction, the ‘glasnost’ unveiled the ills of the past regimes, further bringing into question the ideals of communism and legitimacy of the regime in power then. In reality, ideologies advanced by Gorbachev and his

THE ROLE OF CONTROLLED DRUG RELEASE IN CANCER THERAPEUTICS Essay

THE ROLE OF CONTROLLED DRUG RELEASE IN CANCER THERAPEUTICS - Essay Example Cancer is known to develop when a gene mutation occurs in the oncogene and suppressor genes. The cell becomes incapable of repairing its damaged DNA and undergoes programmed cell death (Castro 2011, p.12). The cells continue to grow resulting in accumulation of many abnormal cells. These tumours are able to invade the nearby healthy tissues making them cancerous also. Some of the common cancers in the world are liver, lung, prostate, cervix, skin, breast and others. Therefore, there are many types of cancer depending on the organ attacked (Melancon, Zhou and Li 2011, p.12). Cancer has the capability of spreading to other body parts through blood and lymphatic systems. It should be noted that not all tumours are cancerous. For example benign tumours neither invade the neighbouring cells nor spread through the lymphatic or blood systems (Horcajada, Serre, Ferey, Couvreur and Gref 2011, p.102). When cancer is able to spread to other body parts successfully, the process is called metasta sis. Scientists research reported in Nature Communications (October, 2012) that spread of cancer is facilitated by the adhesive properties of cancer. Specific molecular interactions between cells and the extracellular matrix cause them to become unstuck at the original tumour site. Many drugs have been formulated in treatment of cancer. However, the effectiveness of these drugs is not as expected since they have serious side effects to the users. The effectiveness of these drugs is being hindered by the hydrophobic nature of these drugs. Therefore, development and application of nanotechnology is one of the solutions to these blockages. (Gubin, 2009, p. 54). Multi Drug Resistance This leads to most of the drugs to have little efficacy unless used in huge doses which will in turn lead to toxic side effects. The main problem in cancer treatment is the multi-drug resistance of the cancerous cells to chemotherapeutics. This is due to the over expression of the Adenosine Triphosphate (AT P)dependent efflux pump called P-glycoprotein which pumps drugs out of the cells body. Loss of P53 genes that promotes cell apoptosis, over-expression of bd-z genes that blocks cell death, reduced drug uptake due to damage of foliate carriers, and increased DNA repair (Dass and Choong 2008, p.21). Liposomes Liposome is an artificial vesicle with an aqueous space into which drugs are inserted (Jain, Das, Swarnakar and Jain 2011, p.37). They have the ability to target cancer cells. They are being used as vehicles for drug administration. The tight junctions in the endothelium cells do not allow movement of large molecules like liposome out of the blood vessel in a normal cell (Yoshikawa, Okada and Nakagawa 2007, p.33). On the other hand tumour cells have hyper-permeability in their endothelial cells due to a physiological defect hence they allow penetration of liposomes inside them (Natalya, R., Zhonggao, G. And Anne, K. 200). Anti-cancer drugs are being coated with these liposomes cr eating a reservoir in the blood system. On detection of a cancerous cell, the liposome extravasates from these leaky blood vessels, and accumulates in the tumours and kills the cancerous cel

Law Enforcement Agencies Essay Example for Free

Law Enforcement Agencies Essay Identify three federal law enforcement agencies. Roles and responsibilities and comparison of local and state law enforcement duties, functions, and their two main differences. The duties, functions, and responsibilities of Local Law Enforcement agencies are as follows: They are required to arrest law violators, perform routine patrol, investigates crimes, enforce traffic laws (including parking violations), provide crowd and traffic control for example parades and other huge public events. Today they also have duties such as: Performing the duties of coroners, tax assessors, tax collectors, keepers of county jails, court attendants, and executors of criminal and civil processes, as well as law enforcement officers. The duties, functions, and responsibilities of State Police Agencies are as follows: patrol small towns and state highways, regulate traffic, and have the primary responsibility to enforce some state laws. They also carry out many duties for local police agencies, such as the managing of state training academies, criminal identification systems, and crime laboratories. Some of the differences between the state and the local police are as follows: State police cooperates with an assortment of law enforcement agencies such as local police, the highway patrol, and park or forest rangers. Really the differences between a sheriff and a police officer vary slightly from state to state, which sometimes lead to confusion. Three federal law enforcement agencies are: Federal Bureau of Investigation (FBI), Drug Administration or Agency (DEA), and the Alcohol Tobacco Firearms (ATF). â€Å"The FBI is a threat-based, intelligence driven national security organization, their principal investigative arm of the U.S. Department of Justice and a full member of the U.S. Intelligence Community,†(FBI 2010). These agents are â€Å"dedicated men and women of the DEA are working hard to investigate and arrest the traffickers of the dangerous drugs.† These agents also help keep our schools and neighborhoods safe and secure. The â€Å"Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) seeks to reduce alcohol smuggling and contraband cigarette trafficking activity, divest criminal and terrorist organizations of monies derived from this illicit activity and significantly reduce tax revenue losses to the States,† (ATF 2010). These agents are also reducing violent crime, and enforcing the Federal explosives laws and regulations. These agents are working to enforce Federal firearms laws and regulations.  All these agents whether local, state or federal work together to protect the United Sates residents from all criminals activities.

Comparison of Housing Loans from SBM and UBI

Comparison of Housing Loans from SBM and UBI This research article is aimed to compare and critically analyse the housing loan schemes offered by State Bank of Mysore and Union Bank of India, Bangalore Branch, India OBJECTIVE OF THE STUDY To recognize and evaluate literature relevant to the theories of home loans. To evaluate the general awareness of the various schemes currently offered by HFCs / banks and the purpose of which housing loan are given. To perform comparative analysis for housing loan schemes for State Bank of India and Union Bank of India. To study the documentation process in HFCs (Housing Finance Companies) and critically evaluate problem faced by clients during the process of lending housing finance in banks. To assess and suggest appropriate Conclusions and Recommendations with regards to housing loan schemes offered by SBM or UBI Bank to the customers. Introduction This article explains the housing loan schemes offered by banks in order to bolster the current housing finance situation in India and to taper down the margin between the housing demand and the availability of houses, The National Housing Bank was set up in the year 1988. This was done by keeping in mind that a home seeker though does have a desire for a house but lacks the resources for construction or buying it. To give an enhancement to private housing finance institutions the National Housing Bank came into the picture. It is a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions. While it is important to keep in mind that the National housing Bank itself does not give loans or finance individuals or a party as such. It is only a corporate body to promote, establish, support or aid the housing finance institutions.   India have been serving the people for around three decades and providing various housing loan schemes according to the customers various needs at attractive and reasonable interest rates. In order to facilitate the best housing loan schemes at the least interest rate this research article will help in critically evaluating and comparing the schemes of housing loan for two banks i.e. State Bank Of India and Union Bank of India, Bangalore, India in order to know the best offers provided by the banks as well their performances in order to retain in competition within marketplace. This research article analyses the effectiveness and efficiency of housing loan schemes provided by SBM and UBI bank which will provide its customers a attractive interest rates in on housing loan. Company Overview of SBM and UBI State Bank of Mysore was formed as Bank of Mysore Ltd. in 1913 under the benefaction of the former Government. Of Mysore, on the illustration of the banking commission headed by the great Engineer-Statesman,  Late Dr. Sir M.Visvesvaraya. Subsequently, in March 1960, the Bank became an Associate of State Bank of India. State Bank of India holds 92.33% of shares. The Banks shares are listed in Bangalore, Chennai, and Mumbai stock exchanges. Branch Network The Bank has a widespread network of six hundred eighty two only (682) branches (as on 30.09.2009) and 20 extension counters spread all over India which includes 5 specialised SSI branches, 4 Industrial Finance branches, 3 Corporate Accounts Branches, 4 specialised Personal Banking Branches, 10 Agricultural Development Branches, 3 Treasury branches, 1 Asset Recovery Branch and 8 Service Branches, offering wide range of services to the customers. Human Resources The Bank has a dedicated workforce of 9720 employees consisting of 3169 supervisory staff, 6551 non-supervisory staff (as on 31.03.2008). The skill and competence of the employees have been kept updated to meet the requirement of our customers keeping in view the changes in the environment. (Source: http://www.statebankofmysore.co.in/profile.htm) Union Bank of India UBI Bank is consistently dedicated to bind and maintain its distinctiveness as a foremost, pioneering cost-effective Bank, by means of a down to business approach to the shifting requirements of the general public. A extensive scale of goods and services has been resulted and also made accessible to its precious customers to cater the least of their requirements. Today, with its well-organized, value-added services, continual intensification, reliable productivity and expansion of innovative technology, UBI bank has ensured comprehensive shopper delight, keeping up its image,  Ã¢â€š ¬Ã…“GOOD QUALITY POPULACE TO BANK WITHâ‚ ¬?.   The key to the triumph of any organisation lies with its personnel or manpower. No wonder, UBI dedicated tem of dynamic and enthusiastic skilled personnel consists of 26000 thousand employee who contribute to the maximum in order to ensure growth for UBI. The bank went for Initial Public offer (IPO) on 20th august 2002 which was followed by the publi c offer made on February 2006.Government of India holds fifty five percent (55.43%) share capital of Union Bank the current share capital holding of the bank is forty four point five seven percent 44.57 % which includes Individuals and Others. Reason behind choosing the topic for the study Housing is the one of the main priority sector needs a lot attention now days the interest rate of the housing loan is raising very high customers are worried about the rates due to indefinite fluctuation. This study is about the comparison of the various schemes and the interest rate of the two banks State Bank of Mysore and Union Bank of India. After this study we will be able to know that which bank is more convenient in the lending of loan. Different schemes of the bank are convenient in different manner according to customers priority. The study is important also in case of comparison of the many other banks schemes to these two banks. Literature Review Meaning of Loan: Loan is a method of lending under which bank gives credit to a borrower for a fixed period and for a specific purpose. Loan are promises for future payment, they have to be repaid in periods beyond a year and are therefore long-term liabilities 3.3Types of Loan: Generally bank grant loans for different period like shorts, medium and long and for different purpose. Broadly, the loans granted by banks are classified follows Bank Loans (1) Short-term Loans: Short-term loans are granted to meet the working capital needs of the borrowers. These loans are granted against the securities of tangible assets mainly the movable assets like goods and commodities, share debenture, etc. (2) Term Loans: Medium and long-term loans are usually called term loans. These loans are granted for more than a year and are meant for purchase of capital assets for the establishment of new units and for expansion or diversification of an existing unit. Loan Procedure: Generally various banks adopt following procedure for loan. Appraisal of Loan Submit the Application Documentation Convene to loan applicant To Issue Draft or Pay order Submit the Application: First of all the loan borrower should submit application to the particular bank. The borrower is required to fill out a common application form, which seeks comprehensive information about proprietors and loan borrowers back ground and his business network and as well as his cost of project and economic consideration. Appraisal of Loan: The bank follows good appraisal system for effective lending and to make easy repay in future way. The main task of the lending bank is to make sure that the income generated from the loan is sufficient to repay the loan installments according to the terms and conditions of amortization. The risk involved in term lending is much more than the risk in short-term lending because the loans are given to new undertaking, or for the modernization and expansion of existing undertaking and for loan period. Before sanctioning any loan a banker should assure himself that the borrowing concern shall be able to earn sufficient income to pay the loan installments. The methods of analysis and standard to be adopted for an appraisal of loan are more similar to investment decision than to short-term lending. The appraisal of loan included projection of future trends of output, sales estimated of costs, returns and flow of funds. It is extremely difficult to have a clever cut formula for the appraisal of term loan since many factors have to be considered such as the type of borrowing bank and its activities, the markets potential, its management, and financial position. The amount of loan and the period of its repayment. Another important factor is whether to give weight age to profitability or to its broad economic significance in the development of the economy. A term loan may be appraised by considering four different aspects of the proposal. They are: Technical feasibility Economic feasibility Managerial competence Financial feasibility Documentation: After completing the step of submit the application and appraisal system of loan. Then loan applicant should collect the document for borrowing loan, every documents and requirement are needed according to the co-operative bank rate. If the loan applicant wants to borrow loan of huge amount, so at a time strong documents are presented by loan applicant against bank like evident of shareholders, original and photocopy of propertys documents, photocopy last three years income tax returns file, etc. if loan applicants has no any recommendation from share holder so firstly the bank becoming share holders of his bank by issuing share to them, so above types of documents are used to borrow loan and advances from the bank. Convene to Loan Application: After collecting the necessary documents, an officer of the recipient bank review it to ascertain whether it is complete for processing, when the application is considered complete. Then the co-operative bank held meeting of his loan applicant and sanctioned the particular loan. Generally this meeting is convened on Monday and Thursdays in every week. Otherwise expected it in other contingent situation and gives date, day and time for delaying particular meeting. To Issue Draft or Pay order: At the last stage is that, after convening of loan applicant and sanctioning loan, borrower should pay its stamp duty, margin and one installment of loan, then in the stamp document or stamp procedure. Then bank gives to them pay order or draft. If the any loan borrowers want to purchase machinery or vehicle from out of city so he need quotation of that particular company, and finally bank made draft of companys name otherwise if the quotation of city area so at a time the co-operative bank made pay order of companys name. Them it gives to company through loan applicant. Thus above procedure is followed by the loan applicant, who wants to borrow loan from banks and satisfied his goal or objectives. 1.) In December 2006 Fulbag Singh and Reema Sharma had studied about the housing Finance in India. Housing, as one of the three basic needs of life, always remains on the top priority of any person, economy, government and society at large. In India, majority of the population lives in slums and shabby shelters in rural areas. From the last decade, the Government of India has been continuously trying to strengthen the housing sector by introducing various housing loan schemes for rural and urban population. The first attempt in this regard was the National Housing Policy (NHP), which was introduced in 1988. The National Housing Bank (NHB) was set up in 1988 as an apex institution for housing finance and a wholly-owned subsidiary of Reserve Bank of India (RBI). The main objective of the bank is to promote and establish the housing financial institutions in the country as well as to provide refinance facilities to housing finance corporations and scheduled commercial banks. Moreover, f or the salaried section, the tax rebates on housing loans have been introduced. The paper is based on the case study of LIC Housing Finance Ltd., which analyzes region-wise disbursements of individual house loans, their portfolio amounts and the defaults for the last ten years, i.e., from 1995-96 to 2004-05 by working out relevant ratios in terms of percentages and the compound annual growth rates. A relevant chart has also been prepared to highlight the results. 2) In May 18, 2007 Michael La Cour-Little had studied about the Economic Factors Affecting Home Mortgage Disclosure Act Reporting. The public release of the 20042005 Home Mortgage Disclosure Act data raised a number of questions given the increase in the number and percentage of higher-priced home mortgage loans and continued differentials across demographic groups. Here we assess three possible explanations for the observed increase in 2005 over 2004: (1) changes in lender business practices; (2) changes in the risk profile of borrowers; and (3) changes in the yield curve environment. Results suggest that after controlling for the mix of loan types, credit risk factors, and the yield curve, there was no statistically significant increase in reportable volume for loans originated directly by lenders during 2005, though indirect, wholesale originations did significantly increase. Finally, given a model of the factors affecting results for 2004-2005, we predict that 2006 results will c ontinue to show an increase in the percentage of loans that are higher priced when final numbers are released in September 2007 3.) â‚ ¬Ã…“The housing finance market has been consistently exhibiting rapid growth in the past few years. Growth has been largely concentrated on urban areas and in the middle to high income groups, focusing on the salaried class. This growth was partly fuelled by the entry of commercial banks seeking asset growth in a sluggish business environment coupled with the tax incentives on housing loans. The banks, with their lower cost of funds, extensive branch network, capability to provide a range of personal banking services and aided by the average low default rates in housing finance, could expand the market considerably. They however, continued to focus on middle to higher income groups. Lower income groups, self employed and the rural population are by and large excluded. While the middle and higher income groups may continue to access conventional housing finance, increasing attention will need to be paid to the needs of the underservedâ‚ ¬?. (Source: Saravanan P. Recent Experiences in the Housing Finance Sector A Study with Reference to India.  Housing Finance International  [serial online]. September 2007; 21(5):45-48. Available from: Business Source Complete, Ipswich, MA. Accessed June 17, 2010) 4.) The innovations in housing finance systems in advanced economies over the past two decades have altered the role of housing sector in business cycle and in the monetary transmission mechanism. It concludes that these changes have spilovers from the hosuing sector to the rest of the economy and have amplified their impact by strengthening the role of housing as collateral. This analysis suggests in economies were developed mortgage markets, monetary policymakers may need to respond over aggressively to developments in housing sectors, within a risk-management approach that treats house price dynamics as one of the key factors to be considered in assuming balnce of risks to output and influence. (Source: World Economic Outlook(International Monetary fund), 2008, ISBN 978-1-58906-719-6) 5.) Today, the housing finance market has evolved into an oligolpolistic structure (SSKI, 20606) with three dominant providers-DFC, the largest housing company, ICICI bank the largest private sector bank, State Bank of India the largest bank in country. According to SSKI India research estimation in 200, the three leading housing credit providers accounted for approximately 75 of the market. Only a few foreign banks are involved and they tend to focus on High net worth individuals.Towards the end of 2005, India saw a graduate inching uo of interest rates. Despite this, close to 85 % of housing credit customers still prefer floating rate of interest.(Source: Housing Finance mechanism in India, 2008, ISBN- 978-92-1-131970-5, [emailprotected] United Nations Human Settlement Programme 2008) 6.) â‚ ¬Ã…“As per a article report published in wall street the trend in housing sector in India as on February 20,2008 were heading for a slowdown. The withdrawal of an Initial Public offering (IPO) by Emaar MGF Pvt. Ltd is an indication of difficulties companies worldwide are having in tapping market. (Source: Kilbinger, Sara Seddon. India Faces Housing Slowdown.  Wall Street Journal Eastern Edition  20 Feb. 2008: B7.  Business Source Complete. EBSCO. Web. 17 June 2010) 7.) â‚ ¬Ã…“The housing market in the Indian metropolitan city of Bangalore. Some problems of housing finance from the viewpoints of families and of public authorities are indicated. It is argued that it is these financial problems that make access difficult for the poorer half of the population of Bangalore to forms of housing other than inner city slums or urban fringe informal housing. Public housing with its unrealistic standards of service provision, but especially its high initial access costs is not well designed to meet the needs of the majority of families. The paper concludes that unless public housing authorities emulate the private housing market they will continue to play a marginal role in housing in a city such as Bangalore. There are signs that this is happening in India with experimentation in both housing finance and lower service standard. (Source: Blore, Ian. Housing and the working class in an Indian metropolis.  Public Administration Development  9.5 (1 989): 557-568.Business Source Complete. EBSCO. Web. 17 June 2010.) 8.) The housing sector in India for several decades faced a number of set-backs, such as an unorganized market, development disparities, a compartmentalized development approach and a deterrent rent control system. There was not even a concerted attempt to understand the housing problem let alone promote it. Reforms introduced in the sector during the 1990s, however, have overturned the situation to a great extent. The designing of a shelter policy, the organization of the housing finance market, the introduction of fiscal incentives, increased public investment, legal reforms and others initiatives have brought about a number of changes in the housing sector. Interestingly, these changes have been concerned with both reducing the housing shortage and increasing the number of quality housing stock besides increased access to various other housing amenities like safe drinking water, good sanitation and household electricity. However, the reform initiatives of the housing sector need t o take deep roots and to go a long way to address the growing incidence of sub-standard and dilapidated housing stock for further minimizing the deprivations of housing amenities. This paper considers a few policy options towards addressing the challenges of the housing sector. (Source: Mahadeva M. Reforms in housing sector in India: impact on housing development and housing amenities.  Habitat International[serial online]. September 2006;30(3):412-433. Available from: Business Source Complete, Ipswich, MA. Accessed June 17, 2010) OPERATIONAL DEFINITION OF THE CONCEPT EMI- Equated Monthly Installment is what a loaner pays the Banks every month towards repayment of loan. It is comprises of principle and interest. EMI = L * r (1 + r) n x 1 (1 + r) n â‚ ¬Ã¢â‚¬Å" 1 12 Interest rate- It is the amount which banks charge along with the principal amount per year on the basis of fixed rate or floating rate. UBI- Union Bank of India SBM- State Bank of Mysore HFC- Housing Finance Company METHODOLOGY The study dwells on both secondary and primary data. The primary data is collected through interviewing staffs of the banks, secondary data is collected through past details of the Housing finance structure, reports, pamphlets, brochures etc Primary research is form of research which includes the gathering of new data using an acknowledged research method. This could be in form of opinion poll, questionaaire, telephonic interviews or personal interview etc For this research article the author has chosen to carry out primary research by collecting data in form of questionnaire or by interviewing SBM and UBI with the support of bank officials or staff members of bank. Secondary Research is referred to data which is not a original creation. This form of data is already available to a researcher in order to carry out the research process in form of websites, journals or newspapers or company annual reports. How Primary data can be collected: 1.) Questionnaire or Opinion Polls: Questionnaire or opinion polls are intended to gather primary data from a sample taken into consideration, with a aim to critically evaluate or analyse the data in form of tabulated results e.g. stastical data or even by simplifying the results in form of a inference of the numeric data. Questionnaire can be performed in several ways such as telephonic interview, Emails, Online surveys or face to face. These methods of opinion polls are elaborated in broader perspective: Telephone interview: This is the most important and widely accepted method of collecting the original and accurate data for resolving the complex issues and providing the accurate solutions. Merit: From the author point of view the main merit of this method is that its more time consuming and a person can explain views more easily which they cannot do sometime face to f ace. Demerit: The demerit of this method could be that the rejection for telephonic interview which doesnt allow the researcher to receive any data for the research. Online Surveys: Surveys nowadays most commonly and widely accepted method of research as it can be presented in many dimension and can be analysed and interpreted based on the requirement of the person and also can be presented in form of tabulation sheets or some analytical software. Merit: This method is very advantageous as a researcher can have a global access from the respondent and its more faster and accurate and easy to administer. Demerit: For this method to have access a user must be well versed with computers as well as its more global method a user should ahve access to internet so that could be a biggest drawback in order to collect data if the respondent dont have knowledge or access to these resources. Personal interview: This form of method is acceptable by everyone as its being designed and implemented based on the convenience of the respondent. A respondent can choose their timing to answer the questionnaires as well its helps in solving the complex issues as it provides the accurate data as well a discussion about the analysis of data from the respondent Merit: The main advantage of face-to-face or direct interviews is that the researcher can accommodate the questions as necessary, classify doubts and ensure that the responses are properly understood, by repeating or rephrasing the questions. The researcher can identify nonverbal clues from the respondent. Disadvantages: The main disadvantage of face-to-face interviews is that geographical limitations may impose restrictions on the surveys and the vast resources that would be needed if such surveys need to be done nationally or internationally. Respondents may feel uneasy about their privacy of their responses when they interact face-to-face with the interviewer. Postal Interview: The most commonly used method of distribution which is fairly easy to administer. The questionnaire and the covering letter will be posted to the sample, usually with a prepaid envelope for returning the completed questionnaire. For this medium short questionnaire will be used. Advantages: A wide geographical area can be covered with the use of postal interview. The respondents use their convenience to fill the form at their own pace. Anonymity of respondents is high. Disadvantages: Any doubts that respondents have cannot be clarified. The return rates of mail questionarres are typically low. Follow up procedures for non responses are necessary in postal interviews. Sampling: Survey provides representative information about a group from which sample was drawn. This qualitative research will involve nonrandom sampling or non-probability sampling where everyone in the population will not have an equal chance to be chosen as part of a sample. The non-probability samples provide good estimates of a population characteristic. Target Population: The target population of my sample will include all bank employees of IS bank. The recruitment of individuals for participation will require the selection of individuals who are employees of IS bank. The sample for the research survey will be selected mostly by these methods: Convenience Sampling: This will be used to identify bank employees who are willing and available for the research survey. As most of the bank employees will be working and will not be available for questioning convenience sampling would be a better choice. Snowballing: This sampling method will be used to identify the first participant. Then that first participant will be asked to refer to other participants with similar characteristics. I have used this method to select bank employees and their friends. It is easier to get representatives for research through this method that has same characteristics. Secondary data can be obtained by: Comparative Case studies: I will go through case studies of competitors who are offering mortgage products in the Turkey market. This will help in understanding their strategies and policies. It will also help in understanding about how they achieve their goal. It will also help in identifying the challenges they faced during marketing their products. Comparative Case Studies helps in comparing two industries and understanding their shortfalls. Hypothesis Since the interest rate on home loan is frequently changing and it is expected that it will rise again by the end of the year 2010. Customers who want to take loan for a long time i.e. more than 15 years and also the big amount are really worried about the payment of high EMI. The problem is mainly for salaried class people who are unable to pay the EMI fixed by the banks on their monthly salary. As the fixed rate of interest is 12.5% now customers are suggested to take loan on floating rate of interest. So hypothesis will be based on the current and future trend of the interest rates of the banks. Analysis of Data Data for analysis will be present in following ways in order to carry out the research as well to do comparative analysis for the subject by giving information in different perspective. Frequency tables  Ã‚   Bar charts, histograms and pie charts  Ã‚   Contingency tables or cross-tabulations   Quantitative and Qualitative data: Qualitative data is form of data which includes the fact and figures such as financial report of a company and Quantitative data is a form of data which can be used analyse the data which is in form of questionnaire and surveys which help in order to analyse the current situation of company and provide the better solutions for company. For this research article author will be using both the data Quantitative as well Qualitative as the research includes both data collection numeric data as well survey or questionnaire data. 3). LIMITATIONS OF THE STUDY If there are advantages of study then obviously there are limitations of that study also. So, some limitations of this study are: This is basically an academic study suffers from time and money constraints. The other limitation includes the sample size, which is small. Analyses of only two banks are done rather than more banks Study is limited to local area of Bangalore, India Since banks are not willing to disclose their client details so the availed information is limited to report, pamphlet, brochure etc. SCOPE OF STUDY The study mainly deals with Housing Finance Sectors. The two important sectors identified for this purpose are companies and client of public and private Housing finance sector in Bangalore, India. AREA OF THE STUDY The study is limited to only one branch of both banks i.e. UBI and SBM situated in Bangalore due to time, money and information availability constraints. Ethics As the research article is focused on banking industry the confedentiaity of the data will be used for academic purposes within the field of study that is housing schemes of two banks and as per the accordance of business ethics. Comparison of Housing Loans from SBM and UBI Comparison of Housing Loans from SBM and UBI This research article is aimed to compare and critically analyse the housing loan schemes offered by State Bank of Mysore and Union Bank of India, Bangalore Branch, India OBJECTIVE OF THE STUDY To recognize and evaluate literature relevant to the theories of home loans. To evaluate the general awareness of the various schemes currently offered by HFCs / banks and the purpose of which housing loan are given. To perform comparative analysis for housing loan schemes for State Bank of India and Union Bank of India. To study the documentation process in HFCs (Housing Finance Companies) and critically evaluate problem faced by clients during the process of lending housing finance in banks. To assess and suggest appropriate Conclusions and Recommendations with regards to housing loan schemes offered by SBM or UBI Bank to the customers. Introduction This article explains the housing loan schemes offered by banks in order to bolster the current housing finance situation in India and to taper down the margin between the housing demand and the availability of houses, The National Housing Bank was set up in the year 1988. This was done by keeping in mind that a home seeker though does have a desire for a house but lacks the resources for construction or buying it. To give an enhancement to private housing finance institutions the National Housing Bank came into the picture. It is a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions. While it is important to keep in mind that the National housing Bank itself does not give loans or finance individuals or a party as such. It is only a corporate body to promote, establish, support or aid the housing finance institutions.   India have been serving the people for around three decades and providing various housing loan schemes according to the customers various needs at attractive and reasonable interest rates. In order to facilitate the best housing loan schemes at the least interest rate this research article will help in critically evaluating and comparing the schemes of housing loan for two banks i.e. State Bank Of India and Union Bank of India, Bangalore, India in order to know the best offers provided by the banks as well their performances in order to retain in competition within marketplace. This research article analyses the effectiveness and efficiency of housing loan schemes provided by SBM and UBI bank which will provide its customers a attractive interest rates in on housing loan. Company Overview of SBM and UBI State Bank of Mysore was formed as Bank of Mysore Ltd. in 1913 under the benefaction of the former Government. Of Mysore, on the illustration of the banking commission headed by the great Engineer-Statesman,  Late Dr. Sir M.Visvesvaraya. Subsequently, in March 1960, the Bank became an Associate of State Bank of India. State Bank of India holds 92.33% of shares. The Banks shares are listed in Bangalore, Chennai, and Mumbai stock exchanges. Branch Network The Bank has a widespread network of six hundred eighty two only (682) branches (as on 30.09.2009) and 20 extension counters spread all over India which includes 5 specialised SSI branches, 4 Industrial Finance branches, 3 Corporate Accounts Branches, 4 specialised Personal Banking Branches, 10 Agricultural Development Branches, 3 Treasury branches, 1 Asset Recovery Branch and 8 Service Branches, offering wide range of services to the customers. Human Resources The Bank has a dedicated workforce of 9720 employees consisting of 3169 supervisory staff, 6551 non-supervisory staff (as on 31.03.2008). The skill and competence of the employees have been kept updated to meet the requirement of our customers keeping in view the changes in the environment. (Source: http://www.statebankofmysore.co.in/profile.htm) Union Bank of India UBI Bank is consistently dedicated to bind and maintain its distinctiveness as a foremost, pioneering cost-effective Bank, by means of a down to business approach to the shifting requirements of the general public. A extensive scale of goods and services has been resulted and also made accessible to its precious customers to cater the least of their requirements. Today, with its well-organized, value-added services, continual intensification, reliable productivity and expansion of innovative technology, UBI bank has ensured comprehensive shopper delight, keeping up its image,  Ã¢â€š ¬Ã…“GOOD QUALITY POPULACE TO BANK WITHâ‚ ¬?.   The key to the triumph of any organisation lies with its personnel or manpower. No wonder, UBI dedicated tem of dynamic and enthusiastic skilled personnel consists of 26000 thousand employee who contribute to the maximum in order to ensure growth for UBI. The bank went for Initial Public offer (IPO) on 20th august 2002 which was followed by the publi c offer made on February 2006.Government of India holds fifty five percent (55.43%) share capital of Union Bank the current share capital holding of the bank is forty four point five seven percent 44.57 % which includes Individuals and Others. Reason behind choosing the topic for the study Housing is the one of the main priority sector needs a lot attention now days the interest rate of the housing loan is raising very high customers are worried about the rates due to indefinite fluctuation. This study is about the comparison of the various schemes and the interest rate of the two banks State Bank of Mysore and Union Bank of India. After this study we will be able to know that which bank is more convenient in the lending of loan. Different schemes of the bank are convenient in different manner according to customers priority. The study is important also in case of comparison of the many other banks schemes to these two banks. Literature Review Meaning of Loan: Loan is a method of lending under which bank gives credit to a borrower for a fixed period and for a specific purpose. Loan are promises for future payment, they have to be repaid in periods beyond a year and are therefore long-term liabilities 3.3Types of Loan: Generally bank grant loans for different period like shorts, medium and long and for different purpose. Broadly, the loans granted by banks are classified follows Bank Loans (1) Short-term Loans: Short-term loans are granted to meet the working capital needs of the borrowers. These loans are granted against the securities of tangible assets mainly the movable assets like goods and commodities, share debenture, etc. (2) Term Loans: Medium and long-term loans are usually called term loans. These loans are granted for more than a year and are meant for purchase of capital assets for the establishment of new units and for expansion or diversification of an existing unit. Loan Procedure: Generally various banks adopt following procedure for loan. Appraisal of Loan Submit the Application Documentation Convene to loan applicant To Issue Draft or Pay order Submit the Application: First of all the loan borrower should submit application to the particular bank. The borrower is required to fill out a common application form, which seeks comprehensive information about proprietors and loan borrowers back ground and his business network and as well as his cost of project and economic consideration. Appraisal of Loan: The bank follows good appraisal system for effective lending and to make easy repay in future way. The main task of the lending bank is to make sure that the income generated from the loan is sufficient to repay the loan installments according to the terms and conditions of amortization. The risk involved in term lending is much more than the risk in short-term lending because the loans are given to new undertaking, or for the modernization and expansion of existing undertaking and for loan period. Before sanctioning any loan a banker should assure himself that the borrowing concern shall be able to earn sufficient income to pay the loan installments. The methods of analysis and standard to be adopted for an appraisal of loan are more similar to investment decision than to short-term lending. The appraisal of loan included projection of future trends of output, sales estimated of costs, returns and flow of funds. It is extremely difficult to have a clever cut formula for the appraisal of term loan since many factors have to be considered such as the type of borrowing bank and its activities, the markets potential, its management, and financial position. The amount of loan and the period of its repayment. Another important factor is whether to give weight age to profitability or to its broad economic significance in the development of the economy. A term loan may be appraised by considering four different aspects of the proposal. They are: Technical feasibility Economic feasibility Managerial competence Financial feasibility Documentation: After completing the step of submit the application and appraisal system of loan. Then loan applicant should collect the document for borrowing loan, every documents and requirement are needed according to the co-operative bank rate. If the loan applicant wants to borrow loan of huge amount, so at a time strong documents are presented by loan applicant against bank like evident of shareholders, original and photocopy of propertys documents, photocopy last three years income tax returns file, etc. if loan applicants has no any recommendation from share holder so firstly the bank becoming share holders of his bank by issuing share to them, so above types of documents are used to borrow loan and advances from the bank. Convene to Loan Application: After collecting the necessary documents, an officer of the recipient bank review it to ascertain whether it is complete for processing, when the application is considered complete. Then the co-operative bank held meeting of his loan applicant and sanctioned the particular loan. Generally this meeting is convened on Monday and Thursdays in every week. Otherwise expected it in other contingent situation and gives date, day and time for delaying particular meeting. To Issue Draft or Pay order: At the last stage is that, after convening of loan applicant and sanctioning loan, borrower should pay its stamp duty, margin and one installment of loan, then in the stamp document or stamp procedure. Then bank gives to them pay order or draft. If the any loan borrowers want to purchase machinery or vehicle from out of city so he need quotation of that particular company, and finally bank made draft of companys name otherwise if the quotation of city area so at a time the co-operative bank made pay order of companys name. Them it gives to company through loan applicant. Thus above procedure is followed by the loan applicant, who wants to borrow loan from banks and satisfied his goal or objectives. 1.) In December 2006 Fulbag Singh and Reema Sharma had studied about the housing Finance in India. Housing, as one of the three basic needs of life, always remains on the top priority of any person, economy, government and society at large. In India, majority of the population lives in slums and shabby shelters in rural areas. From the last decade, the Government of India has been continuously trying to strengthen the housing sector by introducing various housing loan schemes for rural and urban population. The first attempt in this regard was the National Housing Policy (NHP), which was introduced in 1988. The National Housing Bank (NHB) was set up in 1988 as an apex institution for housing finance and a wholly-owned subsidiary of Reserve Bank of India (RBI). The main objective of the bank is to promote and establish the housing financial institutions in the country as well as to provide refinance facilities to housing finance corporations and scheduled commercial banks. Moreover, f or the salaried section, the tax rebates on housing loans have been introduced. The paper is based on the case study of LIC Housing Finance Ltd., which analyzes region-wise disbursements of individual house loans, their portfolio amounts and the defaults for the last ten years, i.e., from 1995-96 to 2004-05 by working out relevant ratios in terms of percentages and the compound annual growth rates. A relevant chart has also been prepared to highlight the results. 2) In May 18, 2007 Michael La Cour-Little had studied about the Economic Factors Affecting Home Mortgage Disclosure Act Reporting. The public release of the 20042005 Home Mortgage Disclosure Act data raised a number of questions given the increase in the number and percentage of higher-priced home mortgage loans and continued differentials across demographic groups. Here we assess three possible explanations for the observed increase in 2005 over 2004: (1) changes in lender business practices; (2) changes in the risk profile of borrowers; and (3) changes in the yield curve environment. Results suggest that after controlling for the mix of loan types, credit risk factors, and the yield curve, there was no statistically significant increase in reportable volume for loans originated directly by lenders during 2005, though indirect, wholesale originations did significantly increase. Finally, given a model of the factors affecting results for 2004-2005, we predict that 2006 results will c ontinue to show an increase in the percentage of loans that are higher priced when final numbers are released in September 2007 3.) â‚ ¬Ã…“The housing finance market has been consistently exhibiting rapid growth in the past few years. Growth has been largely concentrated on urban areas and in the middle to high income groups, focusing on the salaried class. This growth was partly fuelled by the entry of commercial banks seeking asset growth in a sluggish business environment coupled with the tax incentives on housing loans. The banks, with their lower cost of funds, extensive branch network, capability to provide a range of personal banking services and aided by the average low default rates in housing finance, could expand the market considerably. They however, continued to focus on middle to higher income groups. Lower income groups, self employed and the rural population are by and large excluded. While the middle and higher income groups may continue to access conventional housing finance, increasing attention will need to be paid to the needs of the underservedâ‚ ¬?. (Source: Saravanan P. Recent Experiences in the Housing Finance Sector A Study with Reference to India.  Housing Finance International  [serial online]. September 2007; 21(5):45-48. Available from: Business Source Complete, Ipswich, MA. Accessed June 17, 2010) 4.) The innovations in housing finance systems in advanced economies over the past two decades have altered the role of housing sector in business cycle and in the monetary transmission mechanism. It concludes that these changes have spilovers from the hosuing sector to the rest of the economy and have amplified their impact by strengthening the role of housing as collateral. This analysis suggests in economies were developed mortgage markets, monetary policymakers may need to respond over aggressively to developments in housing sectors, within a risk-management approach that treats house price dynamics as one of the key factors to be considered in assuming balnce of risks to output and influence. (Source: World Economic Outlook(International Monetary fund), 2008, ISBN 978-1-58906-719-6) 5.) Today, the housing finance market has evolved into an oligolpolistic structure (SSKI, 20606) with three dominant providers-DFC, the largest housing company, ICICI bank the largest private sector bank, State Bank of India the largest bank in country. According to SSKI India research estimation in 200, the three leading housing credit providers accounted for approximately 75 of the market. Only a few foreign banks are involved and they tend to focus on High net worth individuals.Towards the end of 2005, India saw a graduate inching uo of interest rates. Despite this, close to 85 % of housing credit customers still prefer floating rate of interest.(Source: Housing Finance mechanism in India, 2008, ISBN- 978-92-1-131970-5, [emailprotected] United Nations Human Settlement Programme 2008) 6.) â‚ ¬Ã…“As per a article report published in wall street the trend in housing sector in India as on February 20,2008 were heading for a slowdown. The withdrawal of an Initial Public offering (IPO) by Emaar MGF Pvt. Ltd is an indication of difficulties companies worldwide are having in tapping market. (Source: Kilbinger, Sara Seddon. India Faces Housing Slowdown.  Wall Street Journal Eastern Edition  20 Feb. 2008: B7.  Business Source Complete. EBSCO. Web. 17 June 2010) 7.) â‚ ¬Ã…“The housing market in the Indian metropolitan city of Bangalore. Some problems of housing finance from the viewpoints of families and of public authorities are indicated. It is argued that it is these financial problems that make access difficult for the poorer half of the population of Bangalore to forms of housing other than inner city slums or urban fringe informal housing. Public housing with its unrealistic standards of service provision, but especially its high initial access costs is not well designed to meet the needs of the majority of families. The paper concludes that unless public housing authorities emulate the private housing market they will continue to play a marginal role in housing in a city such as Bangalore. There are signs that this is happening in India with experimentation in both housing finance and lower service standard. (Source: Blore, Ian. Housing and the working class in an Indian metropolis.  Public Administration Development  9.5 (1 989): 557-568.Business Source Complete. EBSCO. Web. 17 June 2010.) 8.) The housing sector in India for several decades faced a number of set-backs, such as an unorganized market, development disparities, a compartmentalized development approach and a deterrent rent control system. There was not even a concerted attempt to understand the housing problem let alone promote it. Reforms introduced in the sector during the 1990s, however, have overturned the situation to a great extent. The designing of a shelter policy, the organization of the housing finance market, the introduction of fiscal incentives, increased public investment, legal reforms and others initiatives have brought about a number of changes in the housing sector. Interestingly, these changes have been concerned with both reducing the housing shortage and increasing the number of quality housing stock besides increased access to various other housing amenities like safe drinking water, good sanitation and household electricity. However, the reform initiatives of the housing sector need t o take deep roots and to go a long way to address the growing incidence of sub-standard and dilapidated housing stock for further minimizing the deprivations of housing amenities. This paper considers a few policy options towards addressing the challenges of the housing sector. (Source: Mahadeva M. Reforms in housing sector in India: impact on housing development and housing amenities.  Habitat International[serial online]. September 2006;30(3):412-433. Available from: Business Source Complete, Ipswich, MA. Accessed June 17, 2010) OPERATIONAL DEFINITION OF THE CONCEPT EMI- Equated Monthly Installment is what a loaner pays the Banks every month towards repayment of loan. It is comprises of principle and interest. EMI = L * r (1 + r) n x 1 (1 + r) n â‚ ¬Ã¢â‚¬Å" 1 12 Interest rate- It is the amount which banks charge along with the principal amount per year on the basis of fixed rate or floating rate. UBI- Union Bank of India SBM- State Bank of Mysore HFC- Housing Finance Company METHODOLOGY The study dwells on both secondary and primary data. The primary data is collected through interviewing staffs of the banks, secondary data is collected through past details of the Housing finance structure, reports, pamphlets, brochures etc Primary research is form of research which includes the gathering of new data using an acknowledged research method. This could be in form of opinion poll, questionaaire, telephonic interviews or personal interview etc For this research article the author has chosen to carry out primary research by collecting data in form of questionnaire or by interviewing SBM and UBI with the support of bank officials or staff members of bank. Secondary Research is referred to data which is not a original creation. This form of data is already available to a researcher in order to carry out the research process in form of websites, journals or newspapers or company annual reports. How Primary data can be collected: 1.) Questionnaire or Opinion Polls: Questionnaire or opinion polls are intended to gather primary data from a sample taken into consideration, with a aim to critically evaluate or analyse the data in form of tabulated results e.g. stastical data or even by simplifying the results in form of a inference of the numeric data. Questionnaire can be performed in several ways such as telephonic interview, Emails, Online surveys or face to face. These methods of opinion polls are elaborated in broader perspective: Telephone interview: This is the most important and widely accepted method of collecting the original and accurate data for resolving the complex issues and providing the accurate solutions. Merit: From the author point of view the main merit of this method is that its more time consuming and a person can explain views more easily which they cannot do sometime face to f ace. Demerit: The demerit of this method could be that the rejection for telephonic interview which doesnt allow the researcher to receive any data for the research. Online Surveys: Surveys nowadays most commonly and widely accepted method of research as it can be presented in many dimension and can be analysed and interpreted based on the requirement of the person and also can be presented in form of tabulation sheets or some analytical software. Merit: This method is very advantageous as a researcher can have a global access from the respondent and its more faster and accurate and easy to administer. Demerit: For this method to have access a user must be well versed with computers as well as its more global method a user should ahve access to internet so that could be a biggest drawback in order to collect data if the respondent dont have knowledge or access to these resources. Personal interview: This form of method is acceptable by everyone as its being designed and implemented based on the convenience of the respondent. A respondent can choose their timing to answer the questionnaires as well its helps in solving the complex issues as it provides the accurate data as well a discussion about the analysis of data from the respondent Merit: The main advantage of face-to-face or direct interviews is that the researcher can accommodate the questions as necessary, classify doubts and ensure that the responses are properly understood, by repeating or rephrasing the questions. The researcher can identify nonverbal clues from the respondent. Disadvantages: The main disadvantage of face-to-face interviews is that geographical limitations may impose restrictions on the surveys and the vast resources that would be needed if such surveys need to be done nationally or internationally. Respondents may feel uneasy about their privacy of their responses when they interact face-to-face with the interviewer. Postal Interview: The most commonly used method of distribution which is fairly easy to administer. The questionnaire and the covering letter will be posted to the sample, usually with a prepaid envelope for returning the completed questionnaire. For this medium short questionnaire will be used. Advantages: A wide geographical area can be covered with the use of postal interview. The respondents use their convenience to fill the form at their own pace. Anonymity of respondents is high. Disadvantages: Any doubts that respondents have cannot be clarified. The return rates of mail questionarres are typically low. Follow up procedures for non responses are necessary in postal interviews. Sampling: Survey provides representative information about a group from which sample was drawn. This qualitative research will involve nonrandom sampling or non-probability sampling where everyone in the population will not have an equal chance to be chosen as part of a sample. The non-probability samples provide good estimates of a population characteristic. Target Population: The target population of my sample will include all bank employees of IS bank. The recruitment of individuals for participation will require the selection of individuals who are employees of IS bank. The sample for the research survey will be selected mostly by these methods: Convenience Sampling: This will be used to identify bank employees who are willing and available for the research survey. As most of the bank employees will be working and will not be available for questioning convenience sampling would be a better choice. Snowballing: This sampling method will be used to identify the first participant. Then that first participant will be asked to refer to other participants with similar characteristics. I have used this method to select bank employees and their friends. It is easier to get representatives for research through this method that has same characteristics. Secondary data can be obtained by: Comparative Case studies: I will go through case studies of competitors who are offering mortgage products in the Turkey market. This will help in understanding their strategies and policies. It will also help in understanding about how they achieve their goal. It will also help in identifying the challenges they faced during marketing their products. Comparative Case Studies helps in comparing two industries and understanding their shortfalls. Hypothesis Since the interest rate on home loan is frequently changing and it is expected that it will rise again by the end of the year 2010. Customers who want to take loan for a long time i.e. more than 15 years and also the big amount are really worried about the payment of high EMI. The problem is mainly for salaried class people who are unable to pay the EMI fixed by the banks on their monthly salary. As the fixed rate of interest is 12.5% now customers are suggested to take loan on floating rate of interest. So hypothesis will be based on the current and future trend of the interest rates of the banks. Analysis of Data Data for analysis will be present in following ways in order to carry out the research as well to do comparative analysis for the subject by giving information in different perspective. Frequency tables  Ã‚   Bar charts, histograms and pie charts  Ã‚   Contingency tables or cross-tabulations   Quantitative and Qualitative data: Qualitative data is form of data which includes the fact and figures such as financial report of a company and Quantitative data is a form of data which can be used analyse the data which is in form of questionnaire and surveys which help in order to analyse the current situation of company and provide the better solutions for company. For this research article author will be using both the data Quantitative as well Qualitative as the research includes both data collection numeric data as well survey or questionnaire data. 3). LIMITATIONS OF THE STUDY If there are advantages of study then obviously there are limitations of that study also. So, some limitations of this study are: This is basically an academic study suffers from time and money constraints. The other limitation includes the sample size, which is small. Analyses of only two banks are done rather than more banks Study is limited to local area of Bangalore, India Since banks are not willing to disclose their client details so the availed information is limited to report, pamphlet, brochure etc. SCOPE OF STUDY The study mainly deals with Housing Finance Sectors. The two important sectors identified for this purpose are companies and client of public and private Housing finance sector in Bangalore, India. AREA OF THE STUDY The study is limited to only one branch of both banks i.e. UBI and SBM situated in Bangalore due to time, money and information availability constraints. Ethics As the research article is focused on banking industry the confedentiaity of the data will be used for academic purposes within the field of study that is housing schemes of two banks and as per the accordance of business ethics.