• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Banking and International Finance.

Extracts from this document...


Tutorial essay: Banking and International Finance Essay 2 (spring term) In describing his trading experience throughout the book, Rothchild mentions financial terms that can be unfamiliar to the reader. He has, however, written a glossary defining these terms, which appear to be different from formal definitions in many ways and for various reasons. Rothchild describes a technical analyst as 'a person who thinks market action itself can predict future course of markets; deluded individual'. The formal definition is 'Technical analysts try to forecast price movements by examining and charting the patterns formed by price history, trading volume, the ratio of advancing stocks to declining stocks, and other technical data'. Rothchilds definition is far less detailed as it doesn't include the elements technical analysts consider in their analysis, maybe because he himself only had a brief understanding of their roles. Also, he is critical of technical analysts by calling them 'deluded', implying they are fools. This may be due to the number of times he ended up unsuccessful after following their information. ...read more.


The various audiences targeted by the two different authors again justify this. Additionally, the definitions can be dissimilar in terms of the way the words are spelt, i.e., Rothchild spells rumours as rumors. This can be due to the different native languages of the authors. The definition of leverage has similarities such as they are both more or less the same length, easy to understand and written to the same degree of depth. However the main difference is that the formal definition uses examples to explain the meaning while Rothschild's definition does not. This analysis is evident by reading the formal definition- 'the use of various financial instruments or borrowed capital such as margin to increase the potential return of an investment' and Rothchild's version, 'controlling a large investment with a smaller amount of money; betting more than you can afford to lose'. There are three definitions of money supply, each consisting of different forms of money. They are distinguished by naming them M-1, M-2 and M-3. ...read more.


Inflation is a matter which is important because it involves the falling value of money. Inflation can be defined as 'the general rise in the price levels' in a given time period. It is measured by the changing index. However, 'rising inflation' is when the rate at which prices rise increases per time period. This means the effects of inflation worsen each time period. Rothchild's version is, 'period when things are worth more than money, and you have more of the latter'. This version, although puts the same point across, does not sound "professional enough" as it makes use of words like 'things' and 'you'. This may be done to make it more comprehensible to the average reader. After comparing and contrasting the two different versions of the definitions, we can point out that the most apparent differences were the different degrees of detail and depth; the complexity of languages used; the extent of formality in the language and the different grammar use. The main reasons for the dissimilarities were, the different audiences targeted by the authors; the different levels of knowledge of the authors and the different levels of explanation required by the readers. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Sources of Finance.

    The market decides what will be produced. This means that resources are used efficiently, but the wealthiest members of society determine production decisions. There will be little or no provision of goods and services for vulnerable members of society. Mixed Economy In a mixed economy, some production decisions are made by government and others by the market.

  2. Managerial Performance and the Need for Data.

    See also the graphs No. 1.1 and 1.2. They show that statistics is a way of thinking that helps managers and business professionals collect or create, summarize, organize, analyze and interpret data in order to register and solve problems, to sense opportunities and risks.

  1. Free essay

    Globalisation & changing career patterns

    The benefits, according to companies such as HSBC, is that by opening a major operation in say Bangalore, then they are enhancing the local economy by providing work, with good working conditions to people who have not had this chance in the past.

  2. Selecting international modes of entry and expansion

    We found that there are some important differences that can help managers learn how to better determine modal choices. Target market factors are generally more important to Japanese firms than company factors; whereas, company factors seem most important to US firms, when making modal choices.

  1. Environmental Analysis Of Landis Lund.

    Our product dependant suppliers are either chosen by our engineers or chosen by our customers. As machines are always variations on a theme, the knowledge of supplier's components is high so our engineers can design assemblies using products they know.

  2. Forms Of Finance.

    The alternative to higher purchase is leasing which is something similar to higher purchase but you never own it. Long term loan- (contracting building) mortgage- using property as security against loan repayments. A lot of the increase of new housing is due to the cheap loans available at the minute your mortgage rate is approx 5%.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work