FOX Translator
No data currently available.
No data currently available.
TITLE
We like to think that when we deposit a dollar at the bank, it goes into a big vault and we can pull out that same dollar at any time. But that¿s not how the U.S. banking system works. Banks take that money and invest it to make money themselves, so cash gets spread around. This, naturally, leads to a big risk: What happens if those investments go sour? Well, you¿d be out of luck. You can¿t get your dollar back.
The Federal Reserve doesn¿t like that scenario, so it prohibits banks from putting all the cash it has on deposit on the line. In fact, the Fed forces banks to keep a portion of their assets at the Federal Reserve itself, to make sure that some of your assets won¿t get squandered if the bank¿s bets go south. These are called ¿reserves,¿ (hence, Federal Reserve. Got it? Good), and usually amount to 10% of the total cash kept in checking accounts.
These reserves are never exactly 10%, and banks like to keep a little extra in reserve ¿ not, as you might think, to make you more comfortable that they¿re in good financial shape, but rather so they can take that excess and lend it to other banks and make money off it. (They¿re banks, they can¿t help themselves.) The rate at which they make these loans is called the Federal Funds rate, which is set by the Federal Reserve¿s Federal Open Market Committee.
When you hear people chattering about how the Fed cut or hiked interest rates, this is what they¿re talking about: the interest rate banks can charge for lending money from their reserves. This begs the question: If these are essentially loans between banks, why is the Fed Funds rate so important for the rest of the economy?
Well, simply put, because loans make the financial world go round. Bank A lends Bank B $10,000 at a Fed Funds rate of 5%. Bank B then lends out $10,000 to a small business at 7%. The small business then takes that money and expands the business and hires new workers. Now someone is employed, Bank B has made interest off the loan, and Bank A is the richer for making it all happen. It¿s perhaps overly simplistic, but you get the idea. When you want the economy to thrive, you make lending cheaper.
Of course, sometimes you don¿t want the economy to thrive. In fact, you might want it to cool down, mostly to avoid money flooding the system and causing inflation. In that case, the Fed raises interest rates, making it difficult to lend or borrow.
Home / Markets / Industries / Industrials
Friday, May 09, 2008
General Dynamics UK Secures New Export Opportunity
Comtex
LONDON, May 9, 2008 /PRNewswire-FirstCall via COMTEX News Network/ ----General Dynamics United Kingdom Limited has confirmed that it has signed an 85m pounds Sterling GBP ($165m USD) contract to supply a tactical communications and data system as part of the United Kingdom's initiatives to improve economic, educational and defense links with Libya. It will provide communications and data handling capabilities, together with technical and training support, to the Elite Brigade of Libya's armed forces.
The program has been developed with the full support of Her Majesty's Government and is in accordance with both the UK's Defense Industrial Strategy and foreign policy objectives. It recognizes the international reputation of General Dynamics UK as a leading exporter of command, control, communications, computing and intelligence (C4I) capabilities. General Dynamics UK has already achieved export success of similar C4I capabilities with the Netherlands and Romania.
Sandy Wilson, president and managing director of General Dynamics UK, said: "This initiative has been developed with the full help and guidance of the Defense and Security Organization, Department for Business, Enterprise and Regulatory Reform. It complements current business activities in Libya, and other opportunities being explored by European companies."
General Dynamics United Kingdom Limited, a wholly owned subsidiary of General Dynamics (NYSE: GD), is a leading player in the UK's knowledge economy and industrial base. Established in the United Kingdom for over 40 years, it employs around 1,700 people at eight facilities. A prime contractor and complex systems integrator, working in partnership with the Ministry of Defense (MoD) and other allies, growing key intellectual property, skills and capabilities in its UK research facilities and workforce, whilst harnessing world-leading technology.
General Dynamics UK leads a key MoD Defence Technology Centre research consortium and, together with a growing C4I export program, plays a central role manufacturing and developing technology to deliver Network Enabled Capability and ISTAR in the battlespace. The Company is widely recognized as a leading contender to supply and integrate the next generation of Armored Fighting Vehicles for the British Army.
More information about the company is available online at www.generaldynamics.uk.com.
General Dynamics, headquartered in Falls Church, Va., employs approximately 84,000 people worldwide and reported 2007 revenues of $27.2 billion. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available online at www.generaldynamics.com.
SOURCE General Dynamics United Kingdom Limited
http://www.generaldynamics.uk.com
Copyright (C) 2008 PR Newswire. All rights reserved
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
