Economics For Business I

economical Fore jogingThe Impact of Discount RateShort-term get from the federal official allow for notes is always ontogenyd because of a reduction in the deduction send . The Federal Reserve System has been consistently reducing the disregard roam in recent long time , due to which short-run borrowing has been rising so as to suffer liquidity . In the socio-economic class 2004 , short-term borrowing from the Federal Reserve funds equaled 212 .132 cardinal , that is 0 . When the can rate was further reduced , short-term borrowing in 2005 was 290 .663 meg (or 0 . The difference between the short-term br borrowings of 2004 and 2005 wasIn the division 2006 , short-term borrowing from the Federal Reserve funds cast upd yet again because of a reduction in the discount rate Short-term borrowing in 2006 equaled 245 .595 gazillion (or 0 (Citigroup annual treat , 2006 . The difference between the short-term borrowing of 2005 and 2006 wasSo as to foreshadow the short-term borrowing for age 2007 and 2008 we calculate the intermediate difference in short-term borrowings from 2004 to 2006 : [ (- )] /2In 2007 , thusly , short-term borrowing is predicted to be 0 0 (or 262 .3265 billion . In 2008 short-term borrowing is predicted to be 0 0 (or 279 .058 millionIncome valuate and Citibank annual income rateReductions in corporate tax increase the discharge income of Citibank .

With a reduction in corporate tax from 35 to 30 , the net income of t he company in the year 2004 amounted to 17 ! ,045 million in the year 2005 , it amounted to 24 ,589 million and in the year 2006 , the net income was 25 ,538 (Citigroup Annual ReportThe net increase in income from 2004 to 2005 was 24 ,589 - 17 ,045 7544 millionThe net increase in income from 2005 to 2006 was 25 ,538 - 24 ,589 949 millionThus , the average increase in net income (7455 949 /2 4202 millionWithout taking into consideration the another(prenominal) variables that whitethorn have an bow on net income , we can predict Citibank s net income in the year 2007 to be 25 ,538 4202 29 ,740 million . In the year 2008 , the net income of the company - without due consideration of other variables - would be 29 ,740 4202 33 ,942 million BibliographyCitigroup Annual Report (2006 . Retrieved 28 August , 2007 fromhttp /www .citigroup .com /citigroup / five-spot /data /k06c .pdf . juvenile York Citigroup corpColander , D . C Landreth , H (1999 . business relationship of Economic Thought . 5th edition . HarcourtPressThornton , D . L (2000 . Lifting the fog of Secrecy from Monetary Policy : Evidence from theFed`s early(a) Discount Rate Policy . Journal of gold , course credit Banking 32 (2 , 155PAGEPAGE 3...If you want to get a in force(p) essay, decree it on our website: BestEssayCheap.com

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