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HOSTILE TAKEOVER: In the world of mergers, the acquisition of one company by another against the wishes of the company being acquired. Also termed a hostile acquisition, this is accomplished by purchasing controlling interest in the stock of the acquired company, usually by offering to pay a price exceeding the current market price. A hostile takeover might be motivated to eliminate competition, to sell off the assets of the company for more that the takeover payment, or to temporarily inflate the price of the stock.
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Lesson Contents
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Unit 1: What It Is |
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Unit 2: Banking Details |
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Unit 3: Reserve Banking |
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Unit 4: Regulating Banks |
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Unit 5: The Economy | |
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Banking
In this lesson, we take a look at the role banking plays in the macroeconomy. Banking is most important to the study of macroeconomics because a substantial fraction of the economy's money supply is under the direct control of commercial banks (as opposed to government). Because government needs to control the money supply to promote business-cycle stability, they need to control banks control of the money supply. As such, we need to take a look at how banks operate, including how they issue the deposits that make up the money supply. - The first unit opens this lesson with an overview of banks and the banking system, including their role as financial intermediaries.
- Moving into the second unit, we take a closer look at the banking system, especially the four basic types of banks (banks, savings and loans, credit unions, and mutual savings banks) and the assorted assets and liabilities of a typical bank.
- The key banking principle -- fractional-reserve banking -- is then discussed in the third unit with a little story about Fred the Goldsmith.
- The fourth unit of this lesson discusses the why, how, and who of bank regulation.
- The fifth and final unit then examines the benefits and problems of fractional-reserve banking for the macroeconomy.
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RISK LOVING A preference for risk in which a person prefers risky income over guaranteed or certain income. Risk loving arises due to increasing marginal utility of income. A risk loving person prefers to undertake risk and is even willing to pay to do so. This is one of three risk preferences. The other two are risk neutrality and risk aversion.
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BEIGE MUNDORTLE
[What's This?]
Today, you are likely to spend a great deal of time driving to a factory outlet seeking to buy either storage boxes for your computer software CDs or a set of tires. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
Your Complete Scope
This isn't me! What am I?
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Natural gas has no odor. The smell is added artificially so that leaks can be detected.
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"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
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NFS
Not For Sale
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