Contemporary Issues in Financial Services Essay - 2

Contemporary Issues in Financial Services - Essay Example This paper will, therefore, identify and discuss some of the key and contemporary issues that have emerged in the financial services sector. The main aim will be to bring into focus some of the key issues in the nature and functionality of financial systems that continue to influence the economy and other financial service operations. To begin, it has been noted that the financial systems in the contemporary society have increasingly been associated with a linkage to overall economic conditions of nations. This will be discussed in the section that follows. Links between the Financial System and the Real Economy The relationship between a financial system and the real economy can be clearly understood in three components. They include the composition of aggregate demand, level of aggregate demand and allocation of resources. Composition of Aggregate Demand The financial system plays an important role in the economy in various ways. At the beginning, one should mention aggregate deman ds in relation to the total expenditure of goods and services of an economy for a specified period for a specified price (McEachern, 2011). The financial system of an economy has a bearing on the way its aggregate demand is constituted. One of the ways it influences economic dynamism is in the way it acts as a facilitator of lending on the one hand and borrowing on the other. Since scarcity is one of the great hindrances to economic growth, by providing a means of obtaining extra resources to offset deficits, the financial sector is therefore a good linkage to economic growth (Burton and Brown, 2009). In effect, the financial sector plays a direct role in the effective planning of expenditure independent of an individual or organization’s present income. A good example is the way creditors or lending institutions are able to store wealth for future consumption through giving out at certain levels of interest whereas borrowers are able to acquire finances to make purchases in advance of income. The result of positive influence of a well regulated and efficient financial system will lead to a relatively higher investment rate than that of consumption in the given economy. Since economic growth relies on investment levels, a financial system is, therefore, a necessary component of the economy. Level of Aggregate Demand Financial development levels may also have an influence on the level of aggregate demand. The level of agreement is subject to the rate of flow of the finances or money in the financial system. A high flow, or otherwise referred to as velocity, is a great determinant of the level of aggregate demand. In a financial system, individuals or lending institutions may decide to retain the cash they have at their disposal as a result of taking precautions for speculative purposes or by having them in solid assets. As a result, the flow or velocity of finances may be lowered as a consequence of decreased liquidity. On the other hand, a well function ing financial system that is able to effectively produce a range of assets that are liquid in nature may help reduce the amounts held by the said parties in the financial markets. The resultant effect will be that of increased velocity of money in the economy which is healthy for economic growth enhancement. The level of aggreg

What make Abraham Lincoln an American Research Paper

What make Abraham Lincoln an American - Research Paper Example Varying aspects define America and as such define what Abraham as an American was. However, of surety is the fact that great Americans of all times have been described or defined by certain of these characteristics. This paper establishes the characters, which defined him to be a great American of all the times. The analysis of Abraham Lincoln as a great American revolves around the definition of Americanism to allude to great conviction or attitude that has special attention ascribed to the nation, US culture, political interest as well as the national interest of the great American state. Therefore, this paper has special attention in the deep political convictions and great oratory competence that saw him rise to the height of his political career and life as the sixteenth US president. To be specific, Abraham was described by his stern stand against slavery and discrimination, which has a great attention in what, defines the United States. His rise to power for instance signaled the divide, which saw the northern states as well as the Northern states separate on the bases of support of or against slavery. The Southern had great regard to slave and slave trade which according to Abraham created class divide among the Americans and which he strictly opposed. His governance was therefore characterized by the great opposition from the political elites who advocated for the class divisions as against the sovereignty of all Americans; the free and the slaves. In a century and over time in the history of America, Abraham Lincoln continues to have great perception amongst the American natives as well as across the globe. Penn Schoen Berland conducted a study to establish the perceptions of Americans towards Abraham and found out among other things that he is perceived to have been the best as well as most influential US president that has ever been. However, there were still a number who opposed the opinion and even lesser number having no knowledge about Abraham L incoln. In fact, a good percentage of the Americans in the current time reason that president Obama compares to some extent with Abraham Lincoln though not to a matching degree where there is still the perception that Abraham stands out against the current president in matters off ideal as well as leadership. In many aspects, among the legendary American heroes, Abraham Lincoln is depicted as being the ‘American original’ from his deep conviction of the sovereignty of the state and all the inhibitors, not defined by race or state of life; slaves and or free (Penn, 2-4). In an evaluation to his life, much lays an inspiration to many following his determination to hail from a very humble background and to forge his way to the highest office in the land and to command great leadership of all the time. His ambition and great determination, which saw him, uphold great integrity are among the basic traits that illustrated the great ‘American’ in him. He represent ed the ‘self made’ person of his time as the nobility in his character is often described. Though he was raised from a poor background, he struggled his way through academics through self-sponsorship, which led him to his law career. Having been brought up in the countryside by his step mother (having lost own mother at the age of 9 years), Lincoln had great determination to acquire formal education. Despite the great challenges that came his way, his staunch determination saw him rise to the House of Commons and thus engaged in his political career (Abraham Lincoln, para 1). It is within his service in the state legislature of Illinois that he started voicing his against slavery, not only