Money and Banking Assignment Example | Topics and Well Written Essays - 1500 words

Money and Banking - Assignment Example The flow of money is not constrained by physical proximity, money flows around the globe through banking institutions and financial markets. This seemingly free flow of money is constrained, however, by rules under which banks and financial markets must operate, as dictated by government policy. This essay will examine different concepts which affect money and banking. I. If the central bank has an interest rate target, why would an increase in the demand for bank reserves lead to a rise in the money supply? If the central bank has an interest rate target an increase in the demand for bank reserves will lead to increase in the money supply since the increase in the demand for reserves shifts the reserves demand curve to the right which in turn would increase the interest rates. In order to prevent this, the central will buy bonds to increase the supply of reserves. The open market purchase will then cause the monetary base and the money supply to expand (Bishop 2012). II. The benefits of central bank lending to banks (rediscount operations) to prevent bank panics are obvious. What are the costs? The benefits of the central bank lending money to banks include helping them to maintain at least a fixed ratio of reserves relative to their to their transaction deposits, they help stabilize the total willingness to hold reserves in the overnight inter-bank loan market. A stable demand of reserves in the overnight inter-bank loan market helps to stabilize the overnight inter-bank loan interest rate, given a quantity of reserves supplied by the central bank. Central banks may lend emergence reserves and other funds when banks have liquidity problems or other financial problems such as shortage of capital. But like deposit insurance, the lending increases moral hazard if the central bank guarantees that all institutions can have access to discount loans, even institutions that are poorly managed. Part of the cost of poor management of

The Law of Evidence Essay Example | Topics and Well Written Essays - 2500 words

The Law of Evidence - Essay Example In order to proceed further, it is pertinent to define the meaning of trick and understand whether that meaning falls into the conundrum of facts of the case. â€Å"A cunning or skilful act or scheme intended to deceive or outwit someone. Intended or used to deceive or mystify, or to create an illusion.†1 To trick someone into something is to make the other person believe that he is showing him the true face of the situation, but, on the other hand he is infact putting him through a fake image of illusion and therefore cheating him to deceive him according to his whims and fancies. ... helps the accused as the departure from the strict procedure has been adopted by design with a view to securing the admission of evidence obtained by an unfair trick. As per the findings of Lord Cooper, "I can find nothing to suggest that any departure from the strict procedure was deliberately adopted ... in the present instance the irregularity ought to be ‘excused’.†150 The Privy Council, in its opinion delivered on an appeal from Kenya, mentioned, as a ground for excluding relevant evidence that it had been obtained by a "trick." 1:;1 Kingsmill Moore ]., admitting evidence of this kind in an Irish case, said: "I can find no evidence of deliberate treachery, imposition [or]deceit." 152 As a ground for rejecting evidence, the Supreme Court of Canada has pointed out: "Admittedly, the statement by the accused was procured by trickery, duress and improper inducements." Therefore, in the first instance, according to the precedents laid down by the Courts worldwide as well as the law in the PACE Act, it has been clearly stated that any evidence produced by putting the individual under a trick is negligible and liable to be excluded under the law. Thus David may be supported with the help of the same. 2. The Law governing the admissibility of the confession Section 82(1) of the PACE Act defines the law governing the admissibility of confession. The Section is as follows: â€Å"confession†, includes any statement wholly or partly adverse to the person who made it, whether made to a person in authority or not and whether made in words or otherwise†.4 According to the facts of the case, it is a clear cut proposition that David was oppressed into confessing that he knew about the stolen nature of the car radio. The Court should look at this situation from a holistic