Therapeutic Approaches Essay Example for Free

Therapeutic Approaches EssayAt the present, the contemporary society has discovered and created many new therapeutic strategies in dealing with psychological problems and wellness maladies. These therapeutic approaches are developed in relation to the different psychological discipline focusing on the different aspects and realms of the human mind. Some of these approaches are turn out effective to many however, some are also ineffective to particular patient. Because of this, it has been determined that part of the effectivity of a certain therapeutic approach is ground on the conformity and acceptance of the patient to the therapy and vice versa on some cases. In this aspect that this author finds a certain specific therapy that he or she is comfortable with. This patient sees the humanistic therapeutic approach to be more convenient and suitable compare to other therapeutic services that are existence offered. This opinion can be said mainly because of the optimistic and po sitive outlook of this therapy to the human nature particularly its patients. In this approach, the said therapy provide a more personal in-depth realization as it try to focus on the positive aspects of the human nature namely the patients neglected strengths and abilities as it was empowered by weakness and insecurities.Compare to other therapeutic approaches, the humanistic view provide a strengthening outlook to the personal life thence promoting the therapys benefit to a long-term advantage for the patient. Other approaches can be said to be only focused on determining the grow of the patients problem thus, they only show the inconsistency of the human nature. However though, most patients know already their inconsistencies thus they become depress and huffish as they accept it. However, the humanistic therapy can show the other side of their personality making the patients realize again that amidst their misdeeds and faults, there is still a acceptable personality that is innate within their being.

Verbs And Adverbs Essay Example for Free

Verbs And Adverbs EssayAn action verb is underlined in each sentence. Write the figure of the Circle the adverb that describes the verb.1. My grandpa snored loudly.2. Chloe played on the bank yesterday.3. I will visit my friend tomorrow.4. George, will you come here?5. My sheepdog sat idly in the pool.6. Neil slowly placed a control panel on the card house.7. Neil stopped suddenly and listened.8. Nathan stamped his feet angrily.9. I carefully glued the last piece onto the model.10. surface-to-air missile accidentally slipped on the ice. 11. Yesterday, they played a game.12. The motortruck grumbled loudly.13. We will go to the concert soon.14. Jen waited patiently for the computer to load.15. Kayla finally arrived at the park.16. My mother nicely reminded me to do my homework.17. The astronaut easily fixed the problem.18. I usually hug my mother when I get home.19. My dog always barks.20. Peter neatly wrote a obtain list.An action verb is underlined in each sentence. Write th e number of the Circle the adverb that describes the verb.1. My grandpa snored loudly.2. Chloe played on the beach yesterday.3. I will visit my friend tomorrow.4. George, will you come here?5. My sheepdog sat lazily in the pool.6. Neil slowly placed a card on the card house.7. Neil stopped suddenly and listened.8. Nathan stamped his feet angrily.9. I carefully glued the last piece onto the model.10. Sam accidentally slipped on the ice.11. Yesterday, they played a game.12. The truck grumbled loudly.13. We will go to the concert soon.14. Jen waited patiently for the computer to load.15. Kayla finally arrived at the park.16. My mother nicely reminded me to do my homework.17. The astronaut easily fixed the problem.18. I usually hug my mother when I get home.19. My dog always barks.20. Peter neatly wrote a shopping list.

Leadership Approach Essay Example for Free

Leadership Approach EssayIdentify and discuss the six trait characteristics in the trait approach to leadership. If one does not charter these traits, can he or she still be a leader? Explain your position Six traits characteristics of leadership are as determine by Mann(1959) study of leadership and small groups are as followed, intelligence, masculinity, ad erectment, dominance, extraversion, and conservatism. There is many traits to leaders from numerous studies, but the focal point of those studies seem to determine with integrity, intelligence, self-confidence, sociability and are defined below. (Northouse, 2010) Integrity- Honesty, trustworthiness, and quality all traits of integrity give an employee a sense of trust and take responsibility for their actions.Self-confidence- Self-esteem and self-assurance and look in ones competencies and skills have ability to make an impact. Sociability- Is a leaders inclination to seek out pleasant social relationships, friendly, ou tgoing, courteous, tactful and diplomatic. Determination- Determination and require to get the job accepte initiative, persistence, dominance, and drive are all key characteristics.Overall when it comes to being a leader you dont have to have a title to be a leader, as we all have probably been involved with people in leadership positions that are everything but a leader. I think that leaders are molded by their experience, environment and exposure to good and bad leaders and from leadership traits from above. I feel that if you dont have any of the traits of being a leader you will struggle to be one, but I believe everyone has the traits of being a leader, you just have to dig inside and find that leader inside you.ReferencesNorthouse, P. G. (2010). Leadership Theory And Practice / Fifth Edition. Los Angles Sage Publication.

Emily Dickinsons And John Keats Poetry Death English Literature Essay

Emily Dickinsons And buns Keats Poetry Death English Literature EssayDeath is an unavoidable part of intent and it is true that everyone is well aware of the fact that the circle of bread and butter includes some(prenominal) a beginning and an ending. Emily Dickinson and John Keats accept the fact that death goes handwriting and hand with spirit, and write about it in their poetry as their receive counselling of life of dealing with it. While both spend death in their poetry they use it in different ways. For Dickinson, both her poems, I comparable a look of woe and Split the Lark and youll find the Music, show how death is a way to find the truth of a somebody. However, for Keats, in his poem Ode to a Nightingale death is feared but also seems to be the better option, compared to the suffering and hurt life seems to bring. Both poets use their works to express their feelings and views of death.During the Civil War, Emily and her family, were especially affected because friends of the family were often killed in battle. Death of close friends was a signifi spatet feature of Emilys life many close to her were taken away. This consequently heightened her interest, fascination and perhaps fear of death, which appeared in so much of her poetry, including I like a look of Agony and Split the Lark and youll gind the Music (Tandon 123). Death, the final experience one has, is for Dickinson the best benchmark it reveals the ultimate truth or reality. In her poems I like a look of Agony and Split the Lark and youll find the Music, Dickinson shows the reader how the real truth of a person is found and seen in death.Here she is wishing pain on another, watching them in anguish in the final moments of life leading to death, doing so just so she undersurface organized religion them. It is impossible to behave or fake, so she finds out the real truth finished the agony of the dying person. Dickinson turns the agony of death into a positive, because it is o ne of the few things that an observer can see and trust to her it is a rare moment of undoubted truth.The detailed specifics of this poem exact it clear that she has watched someone in agony, and by her own admission, has enjoyed it, which makes the poem hitherto more disturbing. She doesnt just need tears of agony to trust someone, she wants a Convulsion, a Throe, glazed over eyes, Beads upon the Forehead. These are all symbols of the worst flesh of pain, a pain that ends in death. This just goes to show how much Dickinson values the truth. The awful enlarge of the ending of a life are to her valuable details because they are the proof that what she sees, hears and feels are real and true. This truth is a connection for her and the person dying because she can trust them fully, in most ways that she cannot trust others.The second poem by Dickinson, Split the Lark and youll find the Music has much of the same meaning of death. In this poem, the death of the lark reveals the tru th, that the bird is in fact capable of sound and music. But the death of the bird comes with a price, after you have found the truth, that it is in fact capable of music, it is dead and can never sing again. Here Dickinson questions whether finding the absolute truth is worth the price of death. She begins the poem in the first stanza by explaining to the readerBy countercurrent the lark Dickinson means just that by cutting the lark open, you will easily find the bits and pieces that make the music bulb after bulb. She goes onto say, that if you want to make absolutely certain that it is true you can dissect it. Her description of the scarlet experiment and the gush after gush is the blood of the bird from being cleft and pulled apart. In the last stanza Dickinson also addresses one who, like Thomas, lacks belief and faith in what is true. Thomas in the Bible refused to believe that Christ had risen, that he lived, he lacked the faith in what was true, just like person killing th e Lark. In both of Dickinsons poems, death is used to find the ultimate and final truth, something, which to her seems vitally important.John Keats views death differently in his poem Ode to a Nightingale. While Dickinson views death as a way to find truth, Keats fears death and wishes to live vicariously through the nightingale, who is, in his opinion, immortal. If he cannot live as a happy nightingale, Keats claims during the poem that he would like to die listening to the song of the nightingale and escaping the pain of life. Keats explains the stress of life to the nightingale in the third stanza sayingSurrounded by the nightingales song, the speaker thinks that the idea of death seems richer than ever, and he longs to die in the night with no pain while the nightingale pours its soul joyfully out. If he were to die, he explains that the nightingale would continue to sing, but he would have ears in vain and no longer be able to hear. Keats explains that the nightingale was . . .not born for death . . . but is an immortal bird and the reader can sense how he longs to be like the bird, happy in no pain and in no fear of death.Both poets use death in different ways to cope with their own understanding, interest, fascination and fear of it. They invite the reader in to see what death means to them and how they see it should be viewed. While Emily Dickinson views death as a way to find the truth about something or someone, Keats sees death as a fearful event but also a freeing one, which releases a person from the pain and suffering of life. While they are different in the way the use death in their poems, as well as, how the view death, they are both effective in conveying their feelings and emotions on the subject to the reader.

Application of Communication Theories | Reflection

Application of Communication Theories ReflectionApplying Communication Theories to the C beer of a Graduate StudentAlayna Naro organisational Culture TheoryMembers of an boldness create their own nuance at heart that organization. The culture potty come from flairs members communicate with each(prenominal) early(a), rituals of the organization, and shared symbols indoors the organization. Each organization has a culture that is distinctly theirs and differs from the cultures of other organizations. Furthermore, organizational culture is not created overnight. An organizations culture is something that builds over a consequence of time and is specialised to the way of living in spite of appearance an organization.Since the fall of 2010, I take been a student of Mississippi State University. I began my academic calling as an undergraduate student. The organizational culture I was a part of at that point in my life is a lot diverse than the organizational culture I am a part of now. As an undergraduate, I was familiar with a majority of my professors, but I did not necessarily extensively communicate with them. Now, as a graduate student, the organizational culture that I am most familiar is within the educate of humanity Sciences, where I am a graduate suspensor as well as a full time student.The make-up of the organization is classical when discussing its organizational culture. In the schooldays of Human Sciences, the organizational make-up consists of a director, faculty members, staff members, and graduate assistants. All of these members, though they have different roles, are who establish the values and moral philosophy for the organization. By beingness active participants within the organization, the members help to create meaningful symbols within the organization.Symbols include verbal and nonverbal communication that is unique to a specific organization. The first type of symbol that can be seen within an organizational culture are physical symbols. Physical symbols consists of designs, logos, dcor, and material objects. Within the School of Human Sciences, we have certain symbols that express the culture house in our organization. The School of Human Sciences has a specific logo that we place on severalise chains, shirts, pens, and other items to market our department. Even our building, Lloyd Ricks-Watson, is a physical symbol that houses us all under one roof.The second type of symbol that can be seen within an organizational culture are behavioral symbols. Behavioral symbols are things such as ceremonies, rituals, or traditions that are specific to that organization. In the School of Human Sciences we have plenty of behavioral symbols that we continuously participate in. Every fall semester, there is a welcome back tailgate for students, faculty, and staff. In the spring, there is a chili supper welcoming students back for a new semester. And one Friday, every month, we have a faculty meeting where we discuss upcoming news within the School of Human Sciences. These reoccurring behaviors help to establish and identify the culture within the organization.Finally, the third type of symbol is verbal symbols. Verbal symbols include jokes, jargon, or stories that hustle around the organization. Within any type of organization, jokes and stories are going to be expressed by dint of verbal communication. Furthermore, faculty calling each other by their first names when students are not around can be seen as a verbal symbol. As a graduate student, I see my instructors calling other faculty members by their first names and then correcting themselves when they realize they are speaking to a student. By listening to stories, joke, or rationality the jargon, one can better understand the culture of the organization.Everyone within an organization is connected. A variety of members make up an organization, and each member contributes something unique to the culture of the organization. W e find connections to the organization through shared ideas, rituals, and symbols. Through physical, behavioral, and verbal symbols, one can feel connection with the organization they are a part of. wiz way this particular theory does not coincide with my career, is that not everyone participates or actively uses all of the things that make up an organizational culture. In any organization or transaction environment, there are going to be those employees who choose not to participate. Even when they are required to immerse themselves within the organizational culture, vindication can quieten be seen. However, overall the theory was very applicable to my situation, and will be applicable to any organizational situation I see in the future.Structuration TheoryGroups and organizations engage in certain behaviors in order to achieve their goals. Within an organization, structure is a requirement. Structure can include the rules and resources use to sustain the organization. Through structuration, organizations transform cordially because of the rules and resources that dictate relationships. Rules and resources guide behaviors and decisions within an organization. Rules consists of guidelines for how a goal can be accomplished. Resources refer to the top executive that all individuals within the organization bring to the throng. Therefore, structuration allows for members of an organization to better understand the social structure of their organization.Power structures are evident in any organizational setting and abet in guiding the decision making process. Power enables members of an organization to achieve goals. Every member within an organization has some form of power superiors, subordinates, etc. Power allows for members of an organization to get what they want within the system. For an individual, power is an authoritative resource that helps the organization to function properly. In regards to this theory, there are five different types of powe r that an individual can exemplify rejoin, coercive, referent, legitimate, and expert.Reward power refers the perception that another person within the organization has the ability to let positive reinforcement. With reward power, the rewards can consist of praise or material rewards. As a student, I deal with reward power on a pretty keep going basis. My instructors are able to reward me for exceptional work by providing words of praise or encouragement. Additionally, as a student, there are ample opportunities for honors, awards and distinguishments. So at the same time, the university itself holds reward power too. Not to mention the greatest material reward a student can receive, a college degree. Because I spot that my professors hold a majority of the reward power, I try my hardest to produce exceptional work. By producing that exceptional and receiving verbal rewards from professors, it provides a sense of incentive to adjudicate out higher rewards, such as the material rewards previously mentioned. powerful power refers to the perception that someone within the organization has the ability to provide punishment. Coercive power makes others feel as though they must comply with the requests of their superiors in order to avoid negative consequences. As a student, the same people who provide me with reward power can also provide me with coercive power, my professors. However, I do not do my work solely to avoid ridicule or punishment, I complete my work in order to maintain my credibility. If I were to not give all of my effort on assignments, did not respect my professors, and did not produce quality work, my credibility with my professors would decrease.Referent power refers to establishing a relationship between a superior in an organization and a member who has slight power than them. A person who holds referent power is typically a friendly, well liked, well respected individual who may even serve as a role model for others within the organizat ion. Again, I believe my professors have lots exposed me to referent power. Sometimes it is very easy for me to form a meaningful relationship not exclusively with my advisor, but also instructors within the department that I respect. I respect them so much mostly overdue to their personality and the way they choose to interact with me as a student. Though I know my professors are above me academically and within the work environment, they still treat me as an individual and pursue general interest in my goals and aspirations.Legitimate power refers to exerting power due to a particular position or title. In the academic community, there are many individuals who exert influence on others based on their titles. For example, I comply with the wishes of my major professor. Her position as my advisor allows her to influence and help structure the direction of my goals by providing her input and expertise when needed. Furthermore, my major professor has someone who exerts legitimate p ower on her as well. The director of our department within the School of Human Sciences holds legitimate power over all instructors within the department. By holding the power as being the director of the department, he has the right and the ability to exert influence over the department as a whole.Expert power refers to a person having a specific set of knowledge or expertise. Those with expert power are very valuable for any type of group or organization. Expert power allows those individuals to assist in decisions making processes and as a source knowledge when consulted. Yet again, my professors hold a sincere do of expert power. All of my professors have completed a bachelors degree, a masters degree, and most have completed their PhD. Therefore, my professors are experts in their fields. It is such a hit for an organization, more specifically outside of academia, to have employees that exhibit expert power.As a graduate assistant, I even experience owning all five of these p owers at some point. As an instructor in classes, I use reward and coercive power by being the person who is in charge of my students grades. Hopefully, through the reward and coercive power used, my students respect me and my assignments, knowing that I hold the power within the classroom. Additionally, I hope I possess some form of referent power with my students and my colleagues. I hope to establish a working relationship with those that I work with and encounter an on everyday basis. I possess legitimate power because of my title as a graduate assistant. That title provides me with the opportunities to serve as an instructor for certain classes, conduct research for myself and for others, and deciphers me from undergraduate students. Finally, I exert expert power because of my degree titles. I have already completed a bachelors degree in which gives me an extensive amount of knowledge in the field of agriculture. Currently, I am pursuing a masters degree which will further enha nce my expertise within the field. genial Penetration TheorySocial penetration refers to a process of relationship bonding where individuals move from superficial communication to more intimate communication. Social penetration relates to more than scarcely physical intimacy, it also incorporates intellectual and emotional intimacy. Social penetration suggests that relationships progress in a systematic way, are predictable, and low-level on our verbal, nonverbal, and environmentally oriented behaviors. All relationships form and follow a particular trajectory in which there are four arranges. The four compass points of the social penetration process include orientation, exploratory affective exchange, affective exchange, and stable exchange.The orientation stage begins by revealing small, ordinary facts about ourselves to others. This past January I moved from an office across campus where I was by myself, into an office which I would share with two other students. For my situa tion as a graduate assistant sharing an office with two other graduate assistants, the orientation stage was very important. At this stage, we divulged enough information for others to begin to find common commonwealth with us, but not enough to be able to judge us. Though the information we tend to express in this stage is simple, and sometimes superficial, it is a necessity for any type of relationship to form.The exploratory affective exchange stage occurs when we begin to share aspects of our individual personality with others. Self-disclosure becomes a crucial part of this stage because it helps to transform superficial relationships into more intimate ones by revealing information about yourself. After a few weeks in the new office situation, I began to realize that I was learning more and more about my office mates. Without even realizing it, we would end up in short conversations about things unrelated to classes or work, which helped to better grasp each others personalit ies.The affective exchange stage is where the closeness of the friendship begins to blossom. At this stage, nonverbal communication can sometimes substitute for verbal communication. For instance, I can come into the office not say anything, but smile, and my office mates can substitute that as a good morning. Also, during this stage we begin to form our own jargon and inside jokes. For example, after about three months of sharing an office, we had inside jokes, we shared unusual videos and pictures, and we also listened to music together. We share information about our families, significant others, and ask for advice on any problems we may be having. Through this stage we were not only able to form a more intimate friendship with one another, we were also able to create an office environment that was comfortable for everyone.The final stage is the stable exchange stage. At this stage, the relationship is more spontaneous than before. Communication and behavior are a lot more predi ctable, and those involved know a lot more about each other and how they react. After reaching this stage, I can say my office mates are more than just people I share a room with Monday through Friday, they are my friends. We know when to talk, when to not talk. We can tell when someone might need a pick me up. And we are not afraid to be ourselves. By working through the stages of the social penetration process, we were able to divulge information about ourselves at a progressive speed and form relationships with one another.The only way to understand other people is to engage in personal conversations with them and by sharing personal bits of information about yourself. Each personality will influence the direction a relationship will take. Though initial conversations may see unimportant, they allow individuals to understand each other and provide early relational development. Through the social penetration process individuals achieve a way to counterweight their needs while al so forming a relationship with another person.Overall, this theory was very applicable to my current situation. I have seen first-hand how relationships develop, and I agree that they are a linear process. I also agree that there a certain steps, or stages, one must go through when developing a relationship with another person. There is give and take with all individuals associated with a relationship, and relationships take time to develop. I will forever keep this theory in the back of my mind as I embark on my professional career where creating, developing, and maintaining relationships is so important.GroupthinkGroups are sets of individuals whose goal is to work toward completing a labor movement or solving a problem. Groups need a solid foundation and need to be able to remain unaffected by all other influences. In order for the members of a group to work together effectively, the group needs a certain level of cohesiveness, or culture, within the group. Group coherence enco urages greater satisfaction within the group, the group members are more enthusiastic, and the group experience is overall positive.As a student, I am required to work in groups on a pretty regular basis. For example, I am an ambassador for the Graduate Student Association on campus. As an ambassador I am required to attend planning meetings, assist when we host events, and serve as a liaison between the GSA and certain departments on campus. As a task oriented group, every group member has a specific job assigned to them, and when everyone does their job, our overall goal is more easily accomplished.Groupthink is a way of group negotiation that reduces conflict and emphasizes the need for unison. When working within a group, sometimes it is easy to have tunnel vision on the end result. We can succumb to pressures of needing to keep the group harmonious and not really address the problem that we need to solve. The need to form a homogeneous group often distracts away from the true p urpose of the group. Furthermore, rather than face rejection, some members will even withhold their input if it differs from others within the group.The initial group meeting for any group is where groupthink is going to be most visible. Certain people choose not to speak up if their opinion slightly differs, some people do not want to offer up new ideas, and everyone looks to the group leader for direction. As meetings become more frequent and the group members get to know each other, I believe those barriers break down and people feel more open to express their opinions. On the other hand, there will always be group members who are never afraid to voice their opinions. It is easy for those people to have influence over the less vocal members in the group, so it is important to keep a happy balance.The only problem with this theory, as it relates to the group I am a part of, is that the theory seems to focus more on decision making groups. Though the GSA committee makes decisions t hat affect the graduate student body as a whole, it is not our primary role. This particular group, as to begin with stated, is more task oriented.Regardless, overcoming groupthink is a reoccurring challenge when working within a group. One of the ways we have actively addressed groupthink within the GSA committee is by allowing members to voice their doubts. We have created a very neutral environment where everyone feels comfortable expressing their thoughts, even if they differ from the majority of the group. When we cannot make a unanimous decision on an issue or task, we completely discuss both sides. Without interruption, without judgement, and without ridicule, we as group work together to find the solution that will be best for the group as a whole.ReferencesWest, R., Turner, L. (2010). Groupthink. In Introducing communication theory Analysis and application (5th Ed.). capital of Massachusetts McGraw-Hill.West, R., Turner, L. (2010). Organizational Culture. In Introducing c ommunication theory Analysis and application (5th ed.). Boston McGraw-Hill.West, R., Turner, L. (2010). Social Penetration Theory. In Introducing communication theory Analysis and application (5th ed.). Boston McGraw-Hill.West, R., Turner, L. (2010). Structuration Theory. In Introducing communication theory Analysis and application (5th ed.). Boston McGraw-Hill.

The Role of Financial Intermediation in Banking

The Role of pecuniary Intermediation in Banking monetary intermediaries exist to solve or subdue market imperfections such as differences in preferences of lenders and borrowers, movement cost, shocks in consumers consumption and asymmetric culture. Theories demonstr competent to explain how fiscal intermediaries reduce market imperfection asset transformationTransaction cost reductionLiquidity insuranceInformational economies of scale and delegated monitoringAsset revolutionAsset transformation is a process performed by monetary intermediaries to transform particular types of assets into to others. This is to satisfy the need of borrowers for long term dandy and the need of lender for high degree of liquidity in their asset. Financial intermediaries transform the primary securities issued by firms into indirect securities by lenders. They issue liabilities (deposit claims) which atomic number 18 short term, low risk and high liquidity, and use parts of these funds to hold larger, high risk and illiquid claims.3 Main TransformationsMaturity TransformationAs the liabilities of financial intermediaries mature faster than their assets, financial intermediaries mismatch the maturity date of the assets go out maturity of the liabilities by making long-term loans and fund them by issuing short-term deposit.Size TransformationThe amount required by borrowers are much to a greater extent(prenominal) than the amount made available by lenders. Financial intermediaries willing then collect and combine the f belows from lenders as required by the borrowers.Liquidity TransformationFinancial intermediaries provide financial or secondary claims or loans. Deposits which are held under liabilities of banks balance are low risk and high liquidity, while loans which are held under the assets of banks balance are riskier and illiquid. To hold liabilities and assets of different degree of liquidity, financial intermediaries will diversify their portfolios. More divers ification will dismantle the default probability.Risk TransformationFinancial intermediaries must(prenominal) be seen by the lenders as a safe place to make deposits. However, the loans made by the intermediaries to the borrower bear some default risk. Therefore, financial intermediaries have to transform risk to reconcile the preferences of borrowers and lenders.Firstly, banks use credit scoring to select close borrowers with respectable re wearing loans history to minimize the risk of loss of for each one loan.Second is to diversify risk by lending to different types of borrowers. Banks try to avoid heavy concentration on an economic activity or on a particular area. They also limit the amount that can be loan out. character From 1985-1989, 400 Texan banks failed which are resulted from heavy concentration on their loan portfolio in real estate dependent on the oil businesses.Third is by pooling risks. Variability of losses can be reduced by making loans to many borrowers. Al though by making out many loans does non reduce the loss in the portfolio of loans overall, but it increase the bank accuracy of farsightedness and limits maximum loss for which the intermediaries has to intromit.How financial intermediaries reduce proceeding costs?Financial intermediaries reduce transaction costs by internalizing them. They make network and information establishment available to lenders and borrowers. As such, lenders and borrowers do not have to find a suitable counterpart each time they want to make a transaction with the other party. Financial intermediaries also provide standardized products which help to reduce the information cost related with scrutinizing individual financial instruments. They also use time-tested procedures and routines.Theory of transaction costsEconomies of scale refer to the transaction costs per dollar of output is reduced as the number of financial transactions increase.Example When using loan contract for many loans, the unit co st of a contract per loan is lower than a loan contract drawn up individually when undertaking direct lending.Economies of cost refer to the cost of producing at least 2 products to discombobulateher is lower that producing them individually. It is concerned with deposit and payment services, because deposits are legal financial claims which allow banks to collect funds to sustain their lending activities and satisfy the request of making payments.ExpertiseThey demonstrable expertise to lower transaction cost. Financial intermediaries such as banks and mutual funds develop in information technology such as ATM to provide liquidity service. asymmetrical InformationAdverse SelectionIt arises when borrowers who are likely to parent un plummy results are the one who are actively seeking loans, because they know that they are unlikely to pay it back. Adverse selection increases the probability that the loan might become a bad credit risk. Hence, lenders whitethorn decide not to loan o ut, point when there is good credit risk.Moral HazardIt is the risk that occurs after the transaction has been made. It is the risk that the borrower may engage in activities which is undesirable from the lenders point of sketch because there a likelihood that the loan will not be re give. Therefore, lenders may decide not to make loan.How adverse selection influence financial structure?Equity MarketWhen borrower wanted to make investment and yet is unable to distinguish between good and bad firms, he is only automatic to pay the price the price that reflects the average quality of firms. However, the firms have more information than the investors and will know the quality of the projects. Good firms will not be willing to sell the securities because they know that their securities are under reputed. Only bad firms are willing to sell their securities at the average price because the price is higher than the value of bad firms securities. However, investors may not want to buy se curities from bad firms and end up decides not to buy any.Bond MarketA potential investor will only be willing to buy a gravel if the interest rate is high enough to compensate him the average default risk between the good and bad firms. Good firms will not want to borrow funds because they know that they are less risk adverse and should not pay an interest that is higher than what they originally should pay for. Only bad firms are willing to pay for such interest rate. However, investor does not wish to buy bond from bad firms. Subsequently, there will be fewer bonds sold in the markets.Tool used which helps to reduce or solve adverse selection problems closed-door production and sales of informationGovernment regulation to increase informationFinancial intermediariesPrivate companies such as Standard and Poors, Moodys and Value Line rumple firms financial position and investment activities, and sell them to potential investor. Such information will help investors in making more accurate investment decisions. However, this does not completely solve the asymmetric problem because of the bump-rider problem. The free-rider problem occurs when individual who do not pay for the information take advantage of the information of which others has paid for. An investor who has paid for the information knows which the are good firms. He decides to buy securities of good firms that are undervalued. The free-riding investors observe which securities is the investor who paid for information is buying, will buy the same securities. This leads to increase in demand of the securities and soon the price of that security will increase to reflect the true value. As a result, because of these free-riders, the investors who bought the information will not benefit. As such, he will realize that he should not buy the information in the first place. If other investors also realize this, private companies may not be able to make enough meshwork from producing the information, and less information is produced in the market and so adverse selection will interfere with the efficient knead of securities markets.Government regulation to increase informationGovernment could regulate financial markets to ensure that firms let loose all information so that investors could distinguish between good firms and bad firms. In United States, the Securities and Exchange Commission (SEC) is the government agency that requires firm selling securities to be certified in adhering to standard accounting principles and disclose honest information about their sales, assets and earnings. But, government intervention on disclosing information does not solve adverse selection completely because accounting principles can be manipulated. Also bad firms can slant information which is required to transmit public to make them look like good firms. By doing so, they can get higher price for their securities. Thus, investors will have problem again to identify which firms are the good one s.Financial intermediariesFinancial intermediaries such as banks have developed expertise in the production of information so that they can evaluate the quality of firms better. Banks produce information through the transactions on the borrowers bank accounts. From the transactions, banks will be able to determine the suitability of credit and ability to repay the loan. Banks then acquire funds from depositors and lend them to good firms. By lending the capital to good firms, banks will be able to earn a higher return than they pay to depositors. Banks will then earn make and can stay fresh in producing information. Also, banks can make profit because it can avoid free-rider problem. They make private loans which are not traded in open markets. As such, other investors cannot preserve what the bank did and bid the price of loan where the bank does not get any gain for the information it produces.Fact Banks are important to developing countries. When banks produce information, th e problem on asymmetric problem is less severe, and it will be easier for firms to issue securities. Information in developing countries is difficult to get as compared to developed countries. Therefore, banks have to play the role in producing information.CollateralCollateral which is property that promised to the lender if the lender default, reduces the adverse selection problem because it reduces the lender losses if the borrower goes into default.How honourable risk influences financial marketsMoral hazard occurs after the transaction takes place. It is the risk that the borrower may engage in risky activities which is undesirable from the lenders point of view, because the loan may be unpaid.Because of the presence of moral hazard problems, firms find it easier to raise fund with debt instruments or else than with rightfulness contracts.Moral hazard in equity contractsEquity contracts landing field to a type of moral hazard known as principal-agent problem. In a firm, the re are managers and stockholders. Usually, managers and stockholders are different people. Managers are the ones who have more information than the stockholders while the stockholders own most of the firms equity. The separation of ownership and control and with the presence of asymmetric information, managers may act in their own interest rather than the interest of the stockholder because managers have fewer incentives to maximize the profit that the stockholder do.Tools to help reduce/solve moral hazard in equity markets outturn of information monitoringTo reduce moral hazard problem, stockholders can engage in the monitoring of the firm activities by auditing the firm frequently and checking on what the commission is doing. However, monitoring can be very costly. (Monitoring is a costly state verification). This also explains in parts why equity is not an important atom in the financial structure.However, this could also cause free-rider problem. Free-rider problem reduces th e moral hazard problem. Because, when stockholder knows that other stockholders are paying for the monitoring activities, he can free ride on their activities. If all stockholders share the same mentality, no stockholders will be willing to pay for the monitoring activities.Government regulation to increase informationGovernments enforce laws to ensure that firms are adhering to accounting standards which can verify the profit easier, and impose penalties on people who committed fraud in hiding or stealing the profit. However, this measure is not very effective because managers have the incentive to make fraud difficult to be proven.Financial intermediaries active in the equity marketAn example of financial intermediaries is the venture capital firm which cans helps to reduce moral hazard arising from the principal-agent problem. They use fund of their partners to help entrepreneurs in setting up bran- unseasoned businesses. In exchange for the use of funds provided by venture capi tal firm, venture capital firm get an equity shares in the new business. Because verifying profit is important in eliminating moral hazard, venture capital firms usually insist on having several of their own people to participate in the management of the firm. Also, the equity in the firm cannot be sold to anyone but to the venture capital firm. Therefore, other investors are unable to free-ride on the venture capital firms activities on verifying profit.Debt ContractsDebt contract is a contractual agreement by which the borrower promised to pay lender fixed amount at regular intervals. The amount of profit made by firm will not affect how much will the lender be receiving. Therefore, whether did the managers have been hiding or stealing profit or engaging in activities which do not increase the level of profit earned, it is of no concern to the lenders, so long as the firm is able to make payment. Only when the firm is unable to make payment as promised, then will the lenders have to know how much profit is the firm getting. As such, less monitoring is required for debt contracts and therefore, lowering the cost of state verification. This also explains why debt contracts are used more often than equity contracts to raise funds.The ideal of moral hazard explains why stocks are not the most important source of financing for businesses.How moral hazard influences financial structure in debt marketsAlthough debt contracts has lower moral hazard as compared to equity contracts, but debt contracts are still subjected to moral hazard. Because debt contracts only require firms to pay a fixed amount and allow them to watch over profit above this amount, firms have an incentive to take on risky investment projectsTools to help reduce/solve moral hazard in debt marketsMaking debt contract incentive-compatibleHigh net worth makes the debt contract incentive-compatible it aligns the incentive of the borrower with that of the lender. Firms with higher net worth are more likely to act in the way that are desirable form the lenders point of view, and thus reducing moral hazard problem, and it will be easier for firms to borrow.Monitoring and enforcement of constrictive covenantsBy introducing restrictive covenants into debt contracts, moral hazard problems are be reduced, as restrictive covenants is a provision which restricts firms activities by either ruling out undesirable behavior or encouraging desirable behavior.There are mainly four types of covenants/Covenants to discourage undesirable behaviorsSuch covenants restrict firms to use the debt contracts to finance on fixed assets or inventories. Others may restrict firms to engage in risky activities such as acquiring other businesses. Covenants may also disallow firm to issue new debt or dispose it asset, and may also restrict dividend payments if ratios such as leverage ratio, ratio of debt to equity has up to a certain level.Covenants that encourage desirable behaviorSuch covenants require t he borrower to have a life insurance that pays off the loan upon the death of the borrower. Such covenants may also encourage firms to keep it net worth high because firms with high net worth reduce the moral hazard problem. Hence, it minimizes the chance that the lenders may be making losses. These covenants require firms to restrain minimum holding of asset relative to the size of the firm.Covenant to keep collateral valuableSuch covenants encourage borrower to keep the collateral in good condition and it must be in the possession of the borrower.Covenants to provide informationSuch covenants provide information about its activities periodically in the form of quarterly accounting and income reports. Such covenants may also allow the lender to audit the firms anytime.This explains why debt contracts are complicated legal documents with restrictions on borrowers behavior.Covenants reduce moral hazard but do not eliminate them, as it not difficult to rule out every risky activity. Also, to ensure that firms are complying with the covenants, monitoring must be enforced. However, monitoring is very costly. Investors may free-ride on the monitoring activities undertaken by other investors.Financial intermediaries, particularly banks are able to avoid the free-riders problems

Secondhand Smoking Essay -- Tobacco Nicotine Smoking Cigarettes

A blockbuster case published in the January issue of the Journal of the American Medical linkup (JAMA) examined the impact of exposure to ETS on the progression of athersclerosis (hardening of the arteries) and concluded, in part, that the arteries of non-smokers exposed to ETS thickened 20% faster than non-smokers with no second-hand exposure (JAMA). Another study published in Pediatrics in January estimated that, about half of the cases of early childhood cases of asthma, chronic bronchitis and wheezing are attri andable to exposure to secondhand smoke (JAMA). Smoking in earthly concern areas such as bars and restaurants can be harmful to the health of not only the smoker himself, but everybody around him. Recent studies on the number of deaths as a result of smoking confirmed that eight out of ten people affected with diseases affiliated with smoking were a face of second hand smoke. Laws are in the process of being passed to make certain places completely non-smoking. Why sh ould a person who has been careful about their health be subject to smokers health problems? Why should a family going out to dinner have to smell the smoke from someone else when the family has conscionable as much right to be there as the smoker does? Isnt there some way to compromise between the two? wont someone be unhappy no matter what the decision about banning smoking is? The fact is that everyone has the right to smoke if they want to but there is no way that a non-smoker should be forced to inhale smoke that isnt theirs. Although, wont a restaurant lose a lot of business if they cut out the smoking sections? The Institute for Social Research at York University for the Ontario Tobacco Research Unit at the University of Toronto performed a study on smoking attitudes and behaviors. First of all, only 19% of Toronto adults smoke, 15% daily (institute). The study proved that, eight out of 10 smokers in Toronto say they would postdate the rules if there were more restrictions on smoking, even without the threat of a fine. Only one in 10 smokers say they would ignore parvenu restrictions (institute). Half of the adults who go out to eat dont go to the smoky restaurants or bars for that matter, but somewhere else. Only a quarter of all the non-smokers replied that they would not take a smoking table even if it was the last one in the restaurant (institute). This information was provid... ...eness Coalition formed in upstate rising York and the Tobacco-Free Tri-Counties including Washington Counties and Oregon. The fact is that many groups are strongly against public smoking because of the effect it has on innocent bystanders. The tobacco companies are afraid of what all these organizations depart do to their profits and, as a result, are bringing forth lawsuits against some select organizations because the organizations are so effective in making new laws. The many new non-smoking laws in bars and restaurants have proved many times profitable to these public places. Therefore, the bars and restaurants, along with many other public places of employment are becoming much safer because of the no smoking rules. This includes less second hand smoking diseases as well as something as forceful as a fire. These new regulations naturally make the non-smoking community very happy some smokers even confide in the new safety rules. Those smokers who believe they have the right to do whatever they want when they want will have to learn to cope with the new ways. Eventually, these laws will be very coarse and it wont be such a big deal to the smoking society once it gets used to it.