Financial system Essay Example | Topics and Well Written Essays - 2750 words

Financial system - Essay Example Financial instruments are paper documents. Yet just as a surgeon uses instruments as financial instruments to undertake crucial exchanges of financial resources. They also can use financial instruments to help reduce the risks of financial loss. There are two basic ways to categorise financial markets. One, which distinguishes between primary or secondary markets, separates types of financial markets depending upon whether or not they are markets for newly issued instruments. The other, which distinguishes between capital and money markets, defines financial markets on the basis of the instrument maturities. The maturity of an instrument is the time ranging from the date of issue until final principal and interest payments are due to the holders of the instruments. Maturities of less than a year are short-term maturities, while maturities in excess of ten years are long-term maturities. Maturities ranging from one to ten years are intermediate-term maturities. Institutions that serve as the middlemen in this process of financing are financial intermediaries. These intermediaries exist solely to take the funds of savers and redistribute those funds to the ultimate borrowers. When individual savers allocate some of their saving to a business by purchasing a corporate bond, they effectively make a direct loan to the business. That is, they assist in the direct finance of the capital investment that the business desires to undertake. But the process of financing such endeavours is not always so direct. Consider, for instance, what may happen if the server also purchases a long-term time deposit issue by a banking firm. The bank, turn, may use these funds, together with those of other deposit holders to buy corporate bonds issued by the same business. In this instance, the saver has indirectly financed business capital investment. The bank, in turn, has intermediated the financing of the investment. There are two types of finance Direct finance Indirect finance In the case of direct finance, a financial intermediary such as a bank plays no role. A saver lends directly to parties who undertake investment. Under indirect finance, however, some other institution channels the funds of savers to those who wish to make capital investments. This latter process of indirect finance, which is the most common way in which funds are channelled from saving to investment, is financial intermediation. There are two groups, which comprise market: 1) Involved: These are the people who are the market participants of economic theory. They have all the knowledge regarding financial assets portfolio. 2) Uninvolved: these are the people with limited knowledge. The usually don't have information about the nature of financial claims and fair market value. The financial intermediaries help these people by providing services in shape of information. By investing on their behalf. This reduced the perceived cost of transaction due to the lack of information. Most of the household consumers partly participate in the market. (Allen & Santomero, 1998). Benefits of

Optimisation of Web Protocols and Services Research Proposal

Optimisation of Web Protocols and Services - Research Proposal Example Like many improved efficiencies in the business environment, optimisation of Voice-over-Internet Protocol (VOIP) technology by utilising Intelligent Energy Aware Networks in order to reduce carbon footprint can be achieved both quantitatively and non-quantitatively. The best way to optimise the quantitative function of cost efficiencies remains through Activity-Based Costing (ABC). ABC has become a prevalent cost method for many manufacturing and production industries since its inception. In addition, it has gained exposure in the service industry over the last decade. (Kocakulah, Mehmet, Diekmann, 2005, 10) Despite popular opinion, service companies are ideal candidates for ABC due to their minimal amount of direct materials. They maintain a high level of fixed costs based on personnel who supply indirect support to products and consumers. Fortunately, cost efficiencies from VoIP implementation apply to both manufacturing and service organisations. Hence, this study involves the eff ectiveness of innovation of the existing internet protocols and creation of the brand new protocol or service system for internet. Non-quantitative attributes are harder to measure than quantitative. As a result, they tend to provide confusing conclusions. Improvements not significantly increasing companies bottom-line are viewed as a poor investment decision when in fact they may improve efficiency. Such capital expenditures are best measured with a scorecard approach which reflects "cause and effect" relationships. (Travis, 2004, 137) Perhaps the easiest sell for VoIP systems remains their ability to save corporations money. Unlike many of VoIP's benefits, cost savings is quantitative in nature. There are several ways in which cost savings occurs. Most savings stems from the ability of offices geographically located in different states or countries to communicate with one another without incurring long-distance fees. This benefit occurs because traditional circuit switches do not carry the electronic signal. Instead, the signal travels through a web based connection and is reassembled at the termination point. Electronic signals travel over the web free of charge the same way e-mail is delivered. Since VoIP is classified as information or data service as opposed to communication service, no charge is incurred. Statement of the problem Achievement of optimisation of VoIP technology can reduce carbon footprints and improve business environment. Research Questions The study is meant to answer following research questions. Q1. How to establish an effective process to calculate the overall cost of the current PBX network and compare to the expense of optimising a VoIP networ