fluctuation

Examples of fluctuation in the following topics:

• The Business Cycle

  • The business cycle is the medium-term fluctuation of the economy between periods of expansion and contraction.
  • The term business cycle (or economic cycle) refers to economy-wide fluctuations in production or economic activity over several months or years.
  • Despite being termed cycles, these fluctuations in economic activity do not follow a mechanical or predictable periodic pattern.
  • In recent years, economic theory has moved towards the study of economic fluctuation rather than the study of business cycles.
  • These views have led to the formulation of the idea that observed economic fluctuations can be modeled as shocks to a system.

• The Lender of Last Resort

  • According to the Federal Reserve Bank of Minneapolis, "the Federal Reserve has the authority and financial resources to act as 'lender of last resort' by extending credit to depository institutions or to other entities in unusual circumstances involving a national or regional emergency, where failure to obtain credit would have a severe adverse impact on the economy. " Through its discount and credit operations, Reserve Banks provide liquidity to banks to meet short-term needs stemming from seasonal fluctuations in deposits or unexpected withdrawals.
  • By making these loans, the Fed serves as a buffer against unexpected day-to-day fluctuations in reserve demand and supply.

• Causes of the bullwhip effect and counteracting the bullwhip effect

  • The bullwhip effect is caused by demand forecast updating, order batching, price fluctuation, and rationing and gaming.
  • Price fluctuations due to inflationary factors, quantity discounts, or sales tend to encourage customers to buy larger quantities than they require.

• Pricing

  • Pricing products in foreign nations is complicated by exchange rate fluctuations, tariffs, governmental intervention, and shipping requirements.
  • How should a company deal with fluctuating exchange rates?

• The political/legal environment

  • While the concept of exchange rates appears relatively simple, these rates fluctuate widely and often, thus creating high risks for exporters and importers.

• General and Administrative Expenses (G&A)

  • Fixed expenses generally do not fluctuate from one accounting period to another, while controllable expenses do.

• Small Businesses and U.S. Jobs

  • It has fluctuated slightly in response to economic conditions, declining slightly when the economy is doing well and increasing when the economy struggles.

• The Discount Rate

  • Seasonal credit is extended to relatively small depository institutions that have recurring intra-year fluctuations in funding needs, such as banks in agricultural or seasonal resort communities.

• Fair Labor Standards Act

  • This graph of the minimum wage in the United States shows the fluctuation in government guarantees for minimum standards of labor.

• Financial Statements Across Periods

  • The information contained in these statements, and how this information fluctuates across periods, is very telling for investors and government regulatory agencies.