1. Introduction
(1) Background imformation of Umpqua bank
Today, not only is Umpqua 13th on Fortune’s list of the Best Companies to Work For, it has also been voted the top bank in Portland for the last three years and is 5th in market shares alongside big players Wells Fargo and Bank of America. But back in 1994, when the bank was a mere six branches, CEO Ray Davis got all the managers to
policies were aimed to stabilize the housing price and not to reduce it. Despite the measures, because of China’s fast growing economy and the high deposit level in banks, housing prices continued to surge.
In 2007, tighter financing policies were implemented. The central bank raised lending rates by six times during the year, directly increasing the burden of housing mortgage loans. The cen
banking laws and electroniccommerce.The Board also exercises broad supervisory control over the financial services industry, administers certain consumer protection regulations, and oversees the nation's payments system. The Board oversees the activities of Reserve Banks, approving the appointments of their presidents and some members of their boards of directors.
The Board's most important res
bank totaling 4,698,284,265,771 to make up for their shortage in cash.
Considering all the information above, Korean Airlines should try harder to make larger cash flows from their business instead of borrowing from the bank. Also, cash flows from investing activities suggest that they should restrain themselves from over-investment.
E. Check the main accounting policies of KAL. Choose one
2. Policy Analysis with Partial Capital Mobility
• Expansionary fiscal policy, fixed exchange rates
IS curve shifts right, Y and R increase.
Higher R increases foreign capital inflow.
• Creates BP surplus and upward pressure on currency.
Central bank intervenes in the foreign exchange market.
• Buys excess foreign currency.
Incr