Saturday, June 20, 2020
Tips for Compare and Contrast Essay
October 22, 2018 If you are assigned with a compare and contrast essay (sometimes it is called comparison essay) this means that you are required to explain the main similarities and differences of different matters or items. The background of your essay will greatly depend on the origin of the matter, which will influence the structure and content. You can be asked to compare and contrast such topics, as: Scientific approaches and theories; Positions of a particular issue; Data, figures and statistics; Literature; Events and much more. Essay Definition and Structure As you get from its title, a compare and contrast essay is about finding similar and distinguishing features of a certain matter. Such a clear task makes it very simple to complete an essay, as you know what features to focus on at once. When completing a compare and contrast essay, most of the students prefer a ‘point-by-point’ method. Its structure is as follows: Point 1: Discussion of the topic A Point 1: Discussion of the topic B C C: Explain how the Point 1 relates or is different from topics A and B Point 2: Discussion of the topic A Point 2: Discussion of the topic B C C: Explain how the Point 2 relates or is different from topics A and B Discuss as many points as required by the task. How to Complete a Compare and Contrast Essay Such essay is a widely assigned task at both high school and college not depending on the major. That is why you will most likely face it throughout your studies years. Unfortunately, in most of the cases you will be given a particular topic to research, not having a chance to choose the subject on your own. However, if you are lucky to choose a matter to analyze, you need to make sure it is discussable and has similarities and differences you can research. Make sure the analyzed issues have many things in common and can be compared, as a weak topic may easily let you down. Make a List of the Main Features Once you come up with the topic and know what to write about, you need to analyze it and understand how the two main features (events, matters) differ or how they are alike. Then you need to make a list of all your results and ideas. Such list is not considered an outline, although it is a great basis for the future work. If you don’t know where to start, you can get access to a database of compare and contrast essay samples. They will help you to get started and introduce to winning strategies and tools. Where to Start Once you have completed the list of key features of the topic, you need to range them depending on the value and decide whether analyzed matters have more similarities or differences. This will help you to create a thesis statement, which needs to reflect all the conclusions you have made. Remember, the result of your thesis statement should be either ‘similarities overcome differences’ or vice versa. Introduction The first paragraph of your essay should encourage the reader to continue and learn more about your research. That is why you need to concentrate on the key elements of the analyzed and compared matters, explaining what questions you are going to answer in your work. The introductory section should explain what things you are planning to compare or contrast, so make sure you use clear definitions (or explain them if necessary). To engage the reader, try to use various tools of a hook sentence. They may include a rhetoric sentence, anecdotes and jokes, statistics and interesting facts. Your introduction is a sort of an outline of your future work, where you describe what you are going to talk about in your essay. Body Paragraphs As any other type of an essay, a compare and contrast paper needs a very thoughtful planning of its body paragraphs. Before getting started, you need to create a list of the main points, which you want to include to your text and the things you already know. Take some time to review every item you have listed and try to range them according to importance, similarities and differences. This will help you to skip not important sections and concentrate on those, which will help you to develop the topic. When you research the topic, try to use facts and data, which is not known and try to make your essay as informative and interesting, as possible. Remember that your subject may be quite simple and most of the audience already knows what you are trying to compare and contrast. That is why make a deeper research and concentrate on unknown facts. Conclusion The final section of your compare and contrast essay is as important, as the rest of the work and you need to make sure you do your best when summing up everything you have discussed in your work. Remember, you need to paraphrase your statements, avoiding making new assumptions. You can also make prognosis and predictions for the future if it is appropriate. Outline of a Compare and Contrast Assignment There are different types of methods, which you can use depending on the goals you are chasing and the demands of your professor. Such methods include the mentioned Point-by-Point, the Alternating and the Block (Subject-by-Subject) ones. Usage of the Point-By-Point Methodology You are already familiar with the structure of such method (if not, scroll the page up) and the only thing to consider is that it is the most accurate and up-to-date method, used by students across the world. It is used, when you want to make your paper vivid and deep, providing a thorough research and provoking questions. Alternating Methodology When using this method, you need to discuss various issues, which are related to items A and B, and switch between them based on the main point. For example: Matter A         First Main Paragraph             First Point Matter B         Second Main Paragraph        First Point Matter A        Third Main Paragraph            Second Point Matter B         Fourth Main Paragraph         Second Point This method is used, when you have valuable information about every paragraph and want to share it with the audience, not depending whether two items are alike or different. You can add as many points as necessary, although remember about the required length of your essay. Block Methodology This method is also called the Subject-by-Subject and needs to be used if you are willing to discuss every point gradually without jumping from one matter to another. The structure of such essay should look like this: Matter A                Paragraphs 1-3                  Points 1,2 †¦ Matter B                Paragraphs 4-6                   Points 1,2 †¦ This method is usually used, when two matters of your compare and contrast essay don’t have a clear connection. With such a structure, you can separate two matters and analyze them individually. If you decide to use such a method, you need to provide only related and relevant details. Moreover, every paragraph you complete should interlink with each other, explaining how they are similar or different. This will provide a clear structure and a powerful message of your essay. Tips for Completing a Compare and Contrast Essay If you are allowed to choose the topic on your own, make sure you pick the subject, which is easy to research. If you are not able to find necessary information, you will most likely fail and produce an essay, which no one would like to read; Try to make an equal amount of paragraphs for each discussed matter; The biggest mistake of most of the students is just summarizing general points of the analyzed items without actually comparing them; Make a powerful conclusion. The final part of your work should make a clear statement and explain the readers why the topic is relevant and requires attention; Follow formatting demands. Every formatting style has its own peculiarities, so you need to make sure you complete your essay according to all of the requirements. If you still don’t know how to make a winning compare and contrast essay, you have a great chance to avoid stress and forget about tiring days at the library! Our writing company is here to assist you in completing outstanding compare and contrast essays of any difficulty and urgency. 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Sunday, June 7, 2020
The Growth Of The Eurodollar Market Finance Essay - Free Essay Example
With the globalization of financial markets, the growth of the international capital markets becomes rapidly, especially the Eurocurrency and Eurobond markets. A Eurocurrency is a dollar or other freely convertible currency deposited in a bank outside its country of origin. The prefix Euro as used here has nothing to do with the currency known as the euro or with Europe. Such as, the U.S dollars on deposit in banks outside the United States are called Eurodollar. Eurodollars are not under the jurisdiction of the Federal Reserve. As long as the U.S dollar was the worlds main means of international payments, the Eurodollar became the dominant Eurocurrency in the financial market. The Eurodollar first came about in 1957 because of the cold war. After the Second World War, the quantity of U.S dollars outside the United States increased enormously. As a result, enormous sum of U.S dollars were in the custody of foreign banks outside the United States. During the cold war pe riod, the Soviet Union feared that its deposits in North American banks would be frozen as retaliation. It decided to move some of its holdings to the Moscow Narodny Bank, which is a Soviet owned bank with a British charter. The British bank would then deposit that money in the US bank. There would be no chance of confiscating that money, because it belonged to the British bank and not directly to the Soviets. On February 28, 1957, the sum of $800,000 was transferred, that creating the first Eurodollar. At first the Eurodollar was only in European nations but because of the large commercial deficits of the United States the Eurodollar market quickly expanded worldwide. The growth of the Eurodollar Market is caused of the restrictive U.S government policies. These policies include reserve requirements on deposits, special charges and taxes, required concessionary loan rates, interest rate ceilings, and rules which restrict bank competition. Such as Regulation Q of the Federal R eserve System, which fixed the rates of interest, paid on time deposits but did not apply to time deposits owned by foreign accounts. Competition among New York banks led returns on such deposits in 1958 and 1959 to rise one-fourth of 1 percent above the Regulation Q ceilings. This induced banks in London to bid for dollar deposits, which they conceded to New York. European lenders and borrowers in dollars also found it convenient to trade in dollars in London rather than New York, because of the identity of the time zones, without the need to limit trading to the few hours a day when Europe and U.S. banks were open simultaneously. Through the 1960s, the Eurodollar market grew rapidly. Currencies other than dollars were traded outside their domestic markets. London was at the centre of the Eurodollar market at that time. Depositors consist mainly of Europe central banks, firms, and individuals in the United States and in third world countries. In the 1970s, the practice of accept ing deposits in U.S. dollars and other non-local currencies spread to banks in Singapore and Hong Kong. As long as the banks outside of the United States offer convenience and smaller spreads than U.S domestic banks. The Eurodollar market continues to thrive. The most important characteristic of the Eurodollar market is that loans are made on a floating rate basis. The benchmark lending rate for Eurodollar became know as dollar LIBOR (London Interbank Offer Rate). This is also called as the Eurodollar rate, which is a zero coupon dollar benchmark interest rate that is quoted for various period such as overnight, one month, three month, six month and one year. Interest rates on loans to governments and their agencies, corporations and nonprime banks are set at a fixed margin above the LIBOR for the given period and currency chosen. At the end of each period, the interest for the next period is calculated at the same fixed margin over the new LIBOR. Fro example, if the margin is 60 basis points and the current six month LIBOR is 3%, and then the borrower is charged 3.6% for the upcoming period. Since the late 1980s, the London interbank offered rate has become less important as a benchmark for lending money in the Eurocurrency market, in much the same way that the prime rate is no longer the all-important benchmark in the U.S bank loan market. Although Eurocurrency rates are still computed off LIBOR, a number of creditworthy borrowers (such as Denmark, Sweden, several major corporations, and some banks) are obtaining financing in the Eurocurrency markets at interest rates well below LIBOR. For example, high-quality borrowers at the London interbank bid (LIBID) rate, which the rate paid by one bank to another for a deposit. LIBID is about 12.5 basis points below LIBOR. The high-quality borrowers, such as the World Bank, can raise funds at below LIBID. This trend largely reflects the fact that the ability of banks to impose themselves as the credit yardstick by which all other international borrowers are measured had faltered. The LIBOR also used as a reference rate for Eurodollar contracts. The Eurodollar futures contracts are traded at the Chicago Mercantile Exchange (CME) in Chicago. They are the worlds most heavily traded short term interest rate futures contracts and extend up to ten years. Each CME Eurodollar futures contract has a face value of $1,000,000. Though the leverage used in futures allows one contract to be traded with a margin of about $1,000. The CMEs Eurodollar futures contracts are based on three month U.S dollar LIBOR rates. The price of a Eurodollar futures contract is defined to be 100.00 minus the three month LIBOR on the contract settlement date. For example, an anticipated annualized interest rate of 5% will translate to a futures price of 95.00. On the expiry day of the contract, the contract is valued using the current fixing of three month LIBOR. From the example we can see at the expiration, if the interest rate raises 1%, the value of the futures contract will be quoted at 94.00. The buyer will compensate the seller $2,500 for one of $1,000,000 valued contract, and vice-versa. Thus the appropriate hedging position can be used to deliver a cash flow that compensates the hedger for the change in interest rates that occurs between the trade date and the settlement date. However, since futures contracts are marked to market daily by the clearing house of the exchange these transfers actually occur incrementally through the period between the trade date and the delivery date and not just on the delivery date. From the principle of how the Eurodollar futures contract works, we can find out if the yield raises the price of the futures contract will falls and vice-versa. Therefore, if you believe that interest rate will fall, you would then buy a CME Eurodollar futures contract because you expect the contract price to rise. And vice-versa, if you believe rate will rise, you would sell or short-sell a CME Eurodollar futures contract because you expect the contract price to fall. This retains the normal inverse relationship between the price and the yield of interest rate securities. However, the bond convexity is not maintained due to the pricing of the Eurodollar contracts in yield terms. In recent years, the global economic is in recession. There is so much uncertainty in todays financial market. Therefore, it is important for investors to properly analyze, not only market environment, but also their investment goals. Especially invest in currency market, that always with large potential risk.
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