Effects of Queensland Floods in 2011

In this report you will find current and past trends and target values for these indicators and the current macroeconomic policies of the Federal Government of Australia and the RBA.

An increase or decrease in the unemployment rate can have a multiple effects on the Australian economy, both beneficial as well detrimental to the economic conditions and the societal outlook.

e. If we evaluated at the same effective rate, the earlier payments would give the semiannual bond the higher value.

Determining the cash rate by the Reserve Bank of Australia establishes a number of different factors for the Australian economy. The RBA is responsible for controlling monetary policy and ensuring that Australia’s financial system is stable. In light of recent events that have impacted economic growth, the RBA has maintained a 2.0% cash rate, which affects the overnight rate for loans to commercial banks. Previously held at 2.25%, a decrease by 25 basis points brought down the cash rate to 2.0%, an all time low in the past decade. The RBA held an expansionary stance to promote investment and spending in the local economy in order to drive growth. It is recommended that the RBA maintain the current cash rate of 2.0% in light of consumer confidence

The figure obviously had not return to pre-crisis level. Moreover, recent commodity prices had fallen significantly which will affect Australia’s short and long term economy.

5. Compare and contrast selling Eurodollar futures and being a fixed rate payer in a swap as a risk management technique. Explain in detail.

10. The current price of silver is $750. Storage costs are $8 per ounce per quarter payable in advance. The interest rate is 12% p.a. with continuous compounding. Calculate the futures price of silver for delivery in six months (to two decimal places).

Climate change is defined as long-term transformation in weather conditions behavior in excess of durations which cover anything from many years to millions of many years. The changes can be modifications in environment measured by change in temperature, precipitation, sea level, humidity and wind pattern. Human activities are the major cause of climate change as these are increasing the amount of greenhouse gases which results into rise in temperature, evaporation etcetera in many cities of the world. One of the cities of Australia, Brisbane, is especially vulnerable against atmosphere change due to its increasing population and waterfront area. Human settlements, biological communities and commercial enterprises all face dangers from compelling

A flood can be defined in many depths but is simply water where it isn’t wanted. In late 2010 Queensland was affected by major flash flooding this continued on into the beginning of 2011 and ¾ of Queensland was declared a disaster zone.

This increase was largely due to the expansionary fiscal policies that many countries adopted in response to the Global Financial Crisis.” According to estimates, Australia is supposed to minimize debt that is slowly growing by 2018. Australia’s income is slower than what others expected and there has been an increase in unemployment (Carmignani

The Queensland floods were a devastating natural disaster which occurred mainly in Brisbane and surrounding areas from 2010 around mid december to early 2011 in January. The Queensland floods lasted for around 1 month and created a lot of damage leaving many people with nothing including no home and nowhere to go. Many areas were affected but the main areas were those around the banks of the Burnett River as well as the Fitzroy river. Unfortunately as time moved on the flood spread to many neighbouring cities affecting hundreds of thousands of people. A flood is “an overflow of a large amount of water beyond its normal limits, especially over what is normally dry land”, therefore being classified as hydrochloric process being part of the branch

Queensland has experienced many economic impacts due to the flooding in 2010-2011. The floods will have a serious significant impact on the Australian economy. Queensland has a share of 20% on Australia’s economy. It also has 60% of global coking coal exports. Queensland with 28% of fruit and vegetable production gone. Due to the crisis of the Queensland flooding Australia is forecasted to 2.6% GDP rise in 2010-2011. With 4.7% unemployment in Queensland and an enormous sum of money such as $10 billion are being contributed to re-constructions.

This image highlights that some regions in Sydney were suffering the flooding after the low pressure system swept down the east coast, Queensland, NSW, the ACT and Tasmania. Also the heavy raining and pale force wind leads numerous trees came down over the roads in Sydney. This circumstance has long-term impacts to the environment and the agriculture. Flooding in key agricultural production areas can lead to widespread damage to crops and fencing and loss of livestock. However, flooding has both negative and positive impacts. Positive impact is to increase fish production and recharge ground water. The negative impacts flooding leads too much sediment and nutrient, destroy habitat and impact the water

To calculate the return at T, several calculations have to be performed. The following formula is applied to calculate the future value of the loan taken, in other words, what Jim has to buy back at T:

The Reserve Bank of Australia has cut the official cash rate to a low two percent through the use of expansionary monetary policy. Through decreasing the interest rate, the Reserve Bank of Australia aims to increase business investment in Australia, which in turn may increase aggregate demand. Monetary policy is controlled by the monetary authority of a country, in this case the Reserve Bank of Australia, to control the supply of money in an economy. This is done by targeting both inflation rates and interest rates. Expansionary monetary policy can be achieved through decreasing interest rates, or by increasing the money supply. Other banks are also responding to the cash rate cuts, with the Australia and New Zealand Banking Group (ANZ) dropping their standard variable home loan rate by 0.25 percentage points. These changes, assuming ceteris paribus, may increase consumer borrowing, allowing for an increase in consumption.