The Importance of Participating free essay sample

Therefore, it is crucial that you join in co-curricular activities, as it brings many benefits. First and foremost, co-curricular activities play a vital role in providing knowledge and experience to the students. For instance, students will have the opportunity to gain new experiences when they join a camp. They would learn to be independent. They would also be able to gain extra knowledge such as inventing gadgets from recycled objects and all sorts of other Hellenizing activities. Sometimes, the new experiences gained will teach you to be more matured. Next, active participation in co-curricular activities will help a person to develop holistically. This is because students should not only focus entirely on their studies and instead, should learn to balance between their studies and their involvement in extra curricular activities. Through active participation in the activities, the school would be able to produce students who are smart, intelligent, bold and inquisitive instead of just bookworms. We will write a custom essay sample on The Importance of Participating or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Furthermore, participation in co-curricular activities can also help you to release stress and boredom.I am sure you will feel stressed, especially when the examinations are just around the corner. Hence, by joining clubs or sports in your school, you can set aside your problems for a while. This in turn will make you feel better and less tense, as all work and no play makes Jack a dull boy. Besides that, co-curricular activities will help you to be fit and healthy. All of the toxic substances in your body will be removed whenever you sweat by playing sports and carrying out activities that require a lot of physical movements.Therefore, you will feel better and be more focused in class. You will also have the opportunity to apply things you have learned in the classroom in real life. For example, if you join the Physics Club, you might have a chance to build a rocket based on the physics principles that was taught in class. On the other hand, if you join the life skills club, chances re,you will get the opportunity to build handicrafts or learn how to cook properly.These are rare opportunities that you might not get when you are not actively participating in clubs and societies. Moreover, your chances for further studies are also enhanced, bayou are active in sports, clubs and societies. With an increasing number of students excelling academically, the competition to get into universities is tougher. The universities are not only looking for students who are academically good, but also who are confident and bold. These attributes could only be gained through co-curricular activities.Overall, even though the participation in co-curricular activities are usually seen as less important than the academic subjects, they have been proven to benefit the students in many ways. Co-curricular activities form the core of a students life and pave a brighter future for those who excel in them. So, do not hesitate to join any co-curricular activities now and be an active member who contributes to the club as well as the school. That is all from me today, thank you.

Using the example (simplified) bank balance sheet below show and explain why the Leverage And Capital Ratios are changed as a result of a 6m write-down in mortgages Essay Example

Using the example (simplified) bank balance sheet below show and explain why the Leverage And Capital Ratios are changed as a result of a 6m write Using the example (simplified) bank balance sheet below show and explain why the Leverage And Capital Ratios are changed as a result of a 6m write-down in mortgages Essay Using the example (simplified) bank balance sheet below show and explain why the Leverage And Capital Ratios are changed as a result of a 6m write-down in mortgages Essay The initial balance sheet shows that the total equity is  £16m and the total asset is  £305m. After the written-down of  £6m on mortgages, the mortgages have converted  £120m into  £114m so that the new total assets change to  £299m. In addition, due to the decrease of total assets, the total equity also turned into  £10m In order to make the total equity equal to total assets. As we know, the formula of leverage ratio and capital ratio is: Leverage ratio= Total Equity/Total Assets *100% Capital ratio= Total Equity/Risk-adjusted assets *100% So, as the changing of total equity and total assets, the leverage ratio also change at the same time. Due to the changing of mortgages, the risk-adjusted assets of mortgages also change so that the total risk-adjusted assets turned into  £191m compared with previously figure  £194m. Therefore, capital ratio has changed attributable to changing of total risk-adjusted assets. In a word, the leverage ratio and capital ratio are changed as a result of a  £6m write-down in mortgages. Part B: In the event that this write-down in mortgage assets was widespread; explain what measures all banks would have to take in order to rebuild their capital ratios back to the required minimum of 8%. Answer: 1. The first method is by increasing total equity (with no change in risk-adjusted assets) 1. As we know, the capital ratio = total equity/ risk-adjusted assets *100% From the table, we can see the current capital ratio=5.24%.the target capital ratio =8%.given the risk-adjusted assets  £191, we suppose to find how much total equity is need to achieve capital ratio of 8%? Assume X=total equity. 8%=X/ £191m*100% X= £15.28m. In conclusion, total equity most increase to  £15.28m to achieve the capital ratio of 8% with no change in risk-adjusted assets. 1. From the table we can see, given the bank has £10 in total equity. From 1 X is given  £15.28m. X- £10m= £15.28m- £10m= £5.28m. In conclusion, bank needed additional equity  £5.28m from the existing equity of  £10m to achieve the total equity of  £15.28m so that the capital ratio of 8% can be achieved. 1. The second method is by decreasing risk-adjusted assets (with no change in equity) 1. With no change in equity, we calculate the total risk-adjusted assets. Using  £10m in equity The total risk-adjusted assets= £10m/8% *100%= £125m. In conclusion, assume total equity is fixed; the total risk-adjusted assets have to decrease to  £125m in order to achieve the capital ratio of 8% 1. Form the table, we can see, current risk-adjusted asset = £191m and the target risk-adjusted asset = £125m. The change of risk-adjusted asset =new risk-adjusted assets-old risk-adjusted assets= £125m-  £191m=- £66m. In conclusion: the total risk-adjusted assets must reduce by  £66m in order to get  £125m so that the capital ratio of 8% can be achieved. 2. We now have to change the composition of Assets to make risk-adjusted assets= £125m Because the risk weight of loans and advances is 100%. We need to make it smaller, old loans and advances= £125m, new loans and advances=old loans and advances +changes in composition of assets= £125m+ (- £66m) = £59m. In conclusion, to achieve the value of risk-adjusted asset= £125m, we need to reduce the loans and advances by £66m in order to get the new loans and advances = £59m 1. In order to achieve liabilities=assets, we also need to change the value of cash in tills. New cash in tills balance= current cash in tills + change in composition of assets= £5m+ £66m= £71m. In conclusion, to achieve the value of risk-adjusted asset= £125m, we not only need to reduce the loans and advances, but also need to increase the cash in tills by  £66m in order to get the new cash in tills = £71m. By reduce the loans advances and increase the cash, which will reduce the lending. The liquidity ratio will increase lead to the credit crisis. [C]New balance sheet with the capital ratio of 8% Liabilities  £m Assets  £m Risk Weighting Risk Adjusted Assets ( £m) Deposits Cash Current accounts 195 Cash in Tills 71 (0%) 0 Time deposits 94 Money at call 5 (0%) 0 Total Liabilities 289 Available for sale assets Gove Bonds ; Bills 10 (10%) 1 Other Bonds ; Bills 40 (20%) 8 Equity Shareholder Capital 7 Other assets Retained Profits 3 Loans and Advances 59 (100%) 59 Mortgages 114 (50%) 57 Total Equity 10 Total Liabilities + Equity 299 Total Assets 299 Total Risk- Adjusted 125 UK Liquidity Ratio 3.34% Leverage Ratio 3.34% Capital Ratio 8% Part C: Explain how, in rebuilding capital ratios, aggregate demand will change, as a result the economy as a whole, could slide into recession. Answerà ¯Ã‚ ¼ The bank starts to rebuild the capital ratios by reducing the risk-adjusted assets. Under the reducing the risk- adjusted assets, it will change the composition of the assets by reducing the loans ; advances and increasing cash in tills. It will cause the overflow of the liquidity. Bank is suddenly reducing profitability. Loans become lesser and lesser to firms, individuals and so on. The bank refused to give loans to others in order to rebuild the capital ratio to achieve a higher figure, which will cause the credit crisis. Assuming the entire bank do that, the aggregate will fall due to the falling of the consumption of domestically produced goods ; services and the investment. All of these are depend on loans. For people, they want to take loans from banks by buying cars and house. They also want to pay the educational fees. For the firms, they are in trouble they cannot finance the loans. Sometimes, they don’t have enough money to buy the new equipment and pay the salary t o their employees, so they take loans from banks, the issue is they cannot take enough loans from banks so as to firms are tending to make less investment. Due to rebuilding capital ratio, banks don’t want to give loans to others, the Cd will fall down. As a result, the economic will go into the recession. The economic will experience a huge fall in terms of their aggregate demand. Also, the banks start to rebuild the capital ratio by increasing the equity. Through increasing retained profit, it can delay the payment of dividends and increase its loans rates ; bank charges, or by laying off staff and closing underperforming branches so that it will cause the increasing of the unemployment rate and reducing spending. Everything is tending to fall. Spending lesser and lesser, the aggregate demand will fall. Thus, GDP will fall leading to the recession.