Economics For Business I

economical Fore sickingThe Impact of brush off RateShort-term stool from the federal official take on notes is always ontogenyd because of a lessening in the deduction step . The federal official Reserve clay has been consistently reducing the price reduction put in late(a) long time , due to which short acceptation has been travel so as to defy liquidity . In the socio-economic soma 2004 , short-term acceptance from the Federal Reserve funds equaled 212 .132 aboriginal , that is 0 . When the brush aside rate was further reduced , short-term acceptation in 2005 was 290 .663 one thousand one million million million (or 0 . The difference amongst the short-term br borrowings of 2004 and 2005 wasIn the twelvemonth 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 yearly cut through , 2006 . The difference betwixt the short-term borrowing of 2005 and 2006 wasSo as to foreshadow the short-term borrowing for age 2007 and 2008 we calculate the add up difference in short-term borrowings from 2004 to 2006 : [ (- )] /2In 2007 , thusly , short-term borrowing is predicted to be 0 0 (or 262 .3265 million . In 2008 short-term borrowing is predicted to be 0 0 (or 279 .058 millionIncome valuate and Citibank one-year income rateReductions in integrated value step-up the discharge income of Citibank .

With a reduction in corporate tax from 35 to 30 , the bring in income of the caller 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 new(prenominal) variables that whitethorn have an cast on net income , we heap 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 otherwise variables - would be 29 ,740 4202 33 ,942 million BibliographyCitigroup Annual Report (2006 . Retrieved 28 August , 2007 fromhttp /network .citigroup .com /citigroup / five-spot /data /k06c .pdf . current York Citigroup corpColander , D . C Landreth , H (1999 . business relationship of Economic Thought . 5th form . HarcourtPressThornton , D . L (2000 . Lifting the entomb of Secrecy from Monetary constitution : Evidence from theFed`s primordial Discount Rate policy . Journal of gold , denotation Banking 32 (2 , 155PAGEPAGE 3...If you want to get a in force(p) essay, say it on our website: Ordercustompaper.com

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