Revision notes Essay

Hardware is the physical parts of the computer system – the parts that you can touch and see. A motherboard, a CPU, a keyboard and a monitor are all items of hardware What is Software? Software is a collection of instructions that can be ‘run’ on a computer. These instructions tell the computer what to do. Software is not a physical thing (but it can of course be stored on a physical medium such as a CD-ROM), it is just a bunch of codes. An operating system such as Windows XP or Mac OS X, applications such as Microsoft Word, and the instructions that control a robot are all examples of software. The Difference Between Hardware and Software? Computer hardware is the physical components that make up the computer system. Hardware is useless without software to run on it. Software is instructions that tell computer hardware what to do. Software is useless unless there is hardware to run it on. For a computer system to be useful it has to consist of both hardware and software. Central Processing Unit (CPU) The CPU is the ‘brain’ of the computer. It is the device that carries out software instructions. The Pentium processor made by Intel is an example of a CPU. CPUs usually plug into a large socket on the main circuit board (the motherboard) of a computer. They get very hot when they are operating so usually have a large fan attached to their top to keep them cool. Random Access Memory (RAM) Random Access Memory (RAM) is the part of the computer that temporarily stores the instructions that the computer is running, and the data it is processing. RAM is a volatile storage device. This means that if the computer’s power is turned off the contents of RAM disappear and are lost. RAM, like the CPU, also plugs in to sockets on the motherboard. When a computer is in use, its RAM will contain Read-Only Memory (ROM) Read-Only Memory (ROM) is used in most computers to hold a small, special piece of software: the ‘boot up’ program. This software runs when the computer is switched on or ‘boots up’. The software checks the computer’s hardware and then loads the operating system. ROM is non-volatile storage. This means that the data it contains is never lost, even if the power is switched off. Graphical User Interface (GUI) A GUI is an interface built around visual (graphical) things. Windows are regions of the screen used to display information. Icons are small pictures that are used to represent folders, software, etc. Menus are lists of options the user can select from. A pointer is an arrow that can be moved around the screen and is used to select things. Windows XP is an example of an operating system with a GUI. GUIs are quite easy to use due to the visual nature of the interface – the user has lots of visual clues as to what things do. However, to display all of the nice graphics required by a GUI takes a lot of computing power so quite a powerful computer is needed. Mainframe Computer A mainframe computer is a large computer, often used by large businesses, in government offices, or by universities. Mainframe computers are typically: Powerful – they can process vast amounts of data, very quickly. Large – they are often kept in special, air-conditioned rooms. Multi-user – they allow several users (sometimes hundreds) to use the computer at the same time, connected via remote terminals (screens and keyboards). Laptop Computer A ‘laptop’ computer is a light, compact and portable PC. Laptops contain a rechargeable battery so that they can be used even when not plugged in to a mains power supply. They also have a built-in LCD monitor. To make them as portable as possible, most laptops try to avoid any sort of cable or wire. Instead of a mouse, a track pad is used. Instead of a wired connection to a network or printer, ‘wireless’ radio connections are used. MICR Reader Magnetic Ink Character Recognition (MICR) is a technology that allows details from bank cheques to be read into a computer quickly and accurately. The cheque number and bank account number are printed at the bottom of each bank cheque in special magnetic ink using a special font. An MICR reader can detect these numbers. OMR Scanner Optical Mark Recognition (OMR) is a technology that allows the data from a multiple-choice type form to be read quickly and accurately into a computer. Special OMR forms are used which have spaces that can be coloured in (usually using a pencil). An OMR scanner can then detect these marks. Common uses of OMR are multiple-choice exam answer sheets and lottery number forms. OCR Scanner Optical Character Recognition (OCR) is a software technology that can convert images of text into an actual text file that can then be edited, e. g. using word-processing software). The result is just as if the text had been typed in by hand. OCR is typically used after a page of a book has been scanned. The scanned image of the page is then analyzed by the OCR software, which looks for recognizable letter shapes and generates a matching text file. Advanced OCR software can recognize normal handwriting as well as printed text – this is usually called handwriting recognition. Sensors A sensor is a device that converts a real-world property (e. g. temperature) into data that a computer can process. Examples of sensors and the properties they detect are†¦ A sensor measures a specific property data and sends a signal to the computer. Usually this is an analogue signal so it needs to be converted into digital data for the computer to process. This is done using by an Analogue-to-Digital Converter (ADC). Sensors are used extensively in monitoring / measuring / data logging systems, and also in computer control systems. SensorWhat it Detects TemperatureTemperature LightLight / dark PressurePressure (e. g. someone standing on it) MoistureDampness / dryness Water-levelHow full / empty a container is MovementMovement nearby ProximityHow close / far something is. Switch or buttonIf something is touching / pressing it Printers Dot-Matrix Printer A dot-matrix printer is named after the pattern (a grid or ‘matrix’) of dots used when creating the paper printout. Dot-matrix print quality is poor, the printers are noisy, and there are much better printing systems available today. However, the dot-matrix printers are still used in certain situations: Since the pins actually hit the paper, several ‘carbon-copies’ can be printed in one go. An example of this is airline tickets, which have several duplicate pages, all printed in one go. The print mechanism is very cheap, and the inked ribbons last for a long time. So, where cheap, low-quality printouts are required, dot-matrix printers are used. An example is shop receipts. Inkjet Printer Cheap, high-quality, full-color printing became available during the 1980s due to the development of ink-jet printers. Ink-jet printers are very quiet in use. Since they have so few moving parts they are also cheap to manufacture and thus cheap to purchase. However, the ink is very expensive to buy (this is how the printer companies make their profits! ) so the printers are expensive to use. Laser Printer Laser printers are very complex devices, and thus expensive to buy. However they are very cheap to use. This is because they produce marks on paper using a fine dust called toner that is relatively cheap to buy. A single toner cartridge will often last for 5,000-10,000 pages of printing. The laser printer uses a complex system, involving a laser, to make the toner stick to the required parts of the paper. (This system is very different to a dot-matrix or ink-jet, and you don’t need to know the details. )The laser and toner system allows very fast printing compared to other printers (just a few seconds per page). Plotter Plotters create hard copy in a very different way to printers. Instead of building up text and images from tiny dots, plotters draw on the paper using a pen. The pens are held in an arm which can lift the pen up or down, and which can move across the paper. The arm and pen create a drawing just like a human could, but much more accurately and more quickly. Different coloured pens can be used to produce coloured line drawings. Designers and architects often use plotters since they work with huge pieces of paper, far bigger than anything a normal printer could work with†¦ Why Backup Your Data? If you delete a file by accident, your computer breaks, your laptop is stolen, or your business burns to the ground, having a backup copy means that you have not lost your precious data. You can recover your lost files and continue working. Most businesses use computers to store very important data (customer records, financial information, designs for products, etc. ) If this data is lost, the business could possibly have to close. Backing-up business data is essential. How Are Backups Created? Personal backups of the data on your hard-drive can be made by†¦Burning files to a CD-R. Copying files to an external hard-drive. Copying the files to another computer on a network. Businesses backup essential data by†¦Making copies of data very regularly. Using large-capacity media such as magnetic tape. Keeping old copies of backups, just in case. Automating the system so that nobody forgets to do it! Keeping backup media off-site (in case of fire or theft) What is a Network? A network is two or more computers, or other electronic devices, connected together so that they can exchange data. For example a network allows computers to share files, users to message each other, a whole room of computers to share a single printer, etc. Network connections between computers are typically created using cables (wires). However, connections can be created using radio signals (wireless / wi-fi), telephone lines (and modems) or even, for very long distances, via satellite links. Local Area Network (LAN) A Local Area Network is a network confined to one building or site. Often a LAN is a private network belonging to an organisation or business. Because LANs are geographically small, they usually use cables or low-power radio (wireless) for the connections. Wireless Local Area Network (WLAN) A wireless LAN (WLAN) is a LAN that uses radio signals (WiFi) to connect computers instead of cables. At the centre of the WLAN is a wireless switch or router – a small box with one or two antennas sticking out the back – used for sending and receiving data to the computers. (Most laptops have a wireless antenna built into the case. )It is much more convenient to use wireless connections instead of running long wires all over a building. However, WLANs are more difficult to make secure since other people can also try to connect to the wireless network. So, it is very important to have a good, hard-to-guess password for the WLAN connections. Typically, the range of a wireless connection is about 50m, but it depends how many walls, etc. are in the way. Wide Area Network (WAN) A Wide Area Network is a network that extends over a large area. A WAN is often created by joining several LANs together, such as when a business that has offices in different countries links the office LANs together. Because WANs are often geographically spread over large areas and links between computers are over long distances, they often use quite exotic connections technologies: optical fibre (glass) cables, satellite radio links, microwave radio links, etc. Topologies The word topology means ‘arrangement’, so when we talk about the topology of a network, we mean how the different parts are arranged and connected together. There are three common network topologies†¦ Bus Network In this type of network, a long, central cable, the ‘bus’ is used to connect all of the computers together. Each computer has a short cable linking it to the ‘bus’. A bus network†¦Is cheap to install (just one long cable). Can be quite slow since all computers share the same cable when communicating. Will stop working if there is a break in the central bus cable. Ring Network In this type of network each computer is connected to a loop of cable, the ‘ring’. (If you took a bus network and connected the ends of the bus cable together, you would have a ring network. )A ring network†¦Can cope with a break in the ring cable since all computers are still joined together (it is now a bus network) Star Network In this type of network every computer is connected to a central device. The device passes messages between computers. At the center of a star network you might use a hub (cheap, but slower) or a switch (more expensive, but faster). A star network†¦Is quite expensive to install (you have to buy lots of cable and the central device)Is very fast since each computer has its own cable which it doesn’t need to share. Can cope with a broken cable (only one computer will be affected). Will stop working if the central device breaks. Is the most common network topology. †¢Any computer that is to be connected to a network needs to have a network interface card (NIC). Cables are still used in most networks, rather than using only wireless, because they can carry much more data per second, and are more secure (less open to hacking). †¢A hub is a device that connects a number of computers together to make a LAN. †¢A switch, like a hub, is a device that connects a number of computers together to make a LAN. †¢A router is a network device that connects together two or more networks. A common use of a router is to join a home or business network (LAN) to the Internet (WAN). †¢A proxy server is a computer setup to share a resource, usually an Internet connection. A bridge is a network device that typically links together two different parts of a LAN. What is a Record? The set of data associated with a single object or person is known as a record. What is a Field, and what is a Field Name? You’ll see that each of our student’s records contain the same items. These items are known as fields. Each field has a field name. What is a Key Field / Primary Key? It is very important that every record in a database can be individually identified. We need to be sure that when we access a record, we are accessing the correct one. Analogue to Digital Convertor (ADC) If you want to attach an analogue input device to a digital device such as a computer, you will need an analogue to digital convertor (ADC). A good example of a computer peripheral that requires an ADC is a microphone. When you plug a microphone into a computer, you are actually plugging it into an ADC which converts the analogue signals from the microphone into digital data that the computer can then process. Digital to Analogue Convertor (DAC) If you want to attach an analogue output device to a digital device such as a computer, you will need a digital to analogue convertor (DAC). A good example of a computer peripheral that requires a DAC is a loudspeaker or headphones. When you plug a loudspeaker into a computer, you are actually plugging it into a DAC, which takes digital data from the computer and converts it into analogue signals which the loudspeaker then converts into sound. The Effect of These Devices on Our Lives Look at the list of devices above. Now try to imagine living without them – washing your clothes by hand! Life would be a lot tougher. Microprocessor-controlled devices mean that we have more leisure time to relax and enjoy ourselves instead of doing household chores. We are able to communicate with people very easily using computers, mobile phones, etc. We can become part of online social networks, making friends with people from all over the world. Computers and Internet connections mean that many of the tasks that involved us leaving the house, for example, shopping for music, clothes or food, can now be done on-line. Online shopping gives us more choice of products and saves us time. It is also great from those who are unable to get out of the house easily, such as the elderly, or the disabled. Trailing Cables Computer equipment is often connected to lots of cables: power, network, etc. If these cables are lying on the floor, they can cause people to trip over them. Solution: Place cables inside cable ducts, or under the carpet / flooring Spilt Drinks or Food If any liquids are spilt on electrical equipment, such a s a computer, it can result in damage to the equipment, or an electric shock to the user. Solution: Keep drinks and food away from computers Overloaded Power Sockets Plugging too many power cables into a socket can result in the socket being overloaded, overheating, and a fire starting. Solution: Never plug too many cables into a socket. Always make sure there are fire extinguishers nearby Heavy Objects Falling Many items of computer equipment are very heavy: CRT monitors, laser printers, etc. Heavy items can cause serious injury if they fall on people. Solution: Make sure equipment is placed on strong tables / shelves †¢Use strong passwords to protect your user login account †¢Never reveal your login password to anyone else †¢Place a firewall between your computer and any network †¢Disconnect from networks when you are not using them †¢Encrypt any sensitive information (just in case they get in) Batch Processing It is often not desirable to deal with a set of data inputs until a certain number have occurred or a set time has passed. So they are stored until the system comes online to process the data in one ‘batch’. The advantage of batch processing is that it can be done during less-busy times on the computer or jobs can be queued up in order to fairly share a computing resource such as a super-computer. The main disadvantage of batch processing is the time delay between collecting the input data and getting an output. It can also be frustrating to find out only later that a batch run has failed due to a data input problem. Good Luck!

The Twilight Saga 5: Midnight Sun 6. Blood Type

I followed her all day through other people's eyes, barely aware of my own surroundings. Not Mike Newton's eyes, because I couldn't stand any more of his offensive fantasies, and not Jessica Stanley's, because her resentment toward Bella made me angry in a way that was not safe for the petty girl. Angela Weber was a good choice when her eyes were available; she was kind – her head was an easy place to be. And then sometimes it was the teachers who provided the best view. I was surprised, watching her stumble through the day – tripping over cracks in the sidewalk, stray books, and, most often, her own feet – that the people I eavesdropped on thought of Bella as clumsy. I considered that. It was true that she often had trouble staying upright. I remembered her stumbling into the desk that first day, sliding around on the ice before the accident, falling over the low lip of the doorframe yesterday†¦ How odd, they were right. She was clumsy. I didn't know why this was so funny to me, but I laughed out loud as I walked from American History to English and several people shot me wary looks. How had I never noticed this before? Perhaps because there was something very graceful about her in stillness, the way she held her head, the arch of her neck†¦ There was nothing graceful about her now. Mr. Varner watched as she caught the toe of her boot on the carpet and literally fell into her chair. I laughed again. The time moved with incredible sluggishness while I waited for my chance to see her with my own eyes. Finally, the bell rang. I strode quickly to the cafeteria to secure my spot. I was one of the first there. I chose a table that was usually empty, and was sure to remain that way with me seated here. When my family entered and saw me sitting alone in a new place, they were not surprised. Alice must have warned them. Rosalie stalked past me without a glance. Idiot. Rosalie and I had never had an easy relationship – I'd offended her the very first time she'd heard me speak, and it was downhill from there – but it seemed like she was even more ill-tempered than usual the last few days. I sighed. Rosalie made everything about herself. Jasper gave me half a smile as he walked by. Good luck, he thought doubtfully. Emmett rolled his eyes and shook his head. Lost his mind, poor kid. Alice was beaming, her teeth shining too brightly. Can I talk to Bella now â€Å"Keep out of it,† I said under my breath. Her face fell, and then brightened again. Fine. Be stubborn. It's only a matter of time. I sighed again. Don't forget about today's biology lab, she reminded me. I nodded. No, I hadn't forgotten that. While I waited for Bella to arrive, I followed her in the eyes of the freshman who was walking behind Jessica on his way to the cafeteria. Jessica was babbling about the upcoming dance, but Bella said nothing in response. Not that Jessica gave her much of a chance. The moment Bella walked through the door, her eyes flashed to the table where my siblings sat. She stared for a moment, and then her forehead crumpled and her eyes dropped to the floor. She hadn't noticed me here. She looked so†¦sad. I felt a powerful urge to get up and go to her side, to comfort her somehow, only I didn't know what she would find comforting. I had no idea what made her look that way. Jessica continued to jabber about the dance. Was Bella sad that she was going to miss it? That didn't seem likely†¦ But that could be remedied, if she wished. She bought a drink for her lunch and nothing else. Was that right? Didn't she need more nutrition than that? I'd never paid much attention to a human's diet before. Humans were quite exasperatingly fragile! There were a million different things to worry about†¦ â€Å"Edward Cullen is staring at you again,† I heard Jessica say. â€Å"I wonder why he's sitting alone today?† I was grateful to Jessica – though she was even more resentful now – because Bella's head snapped up and her eyes searched until they met mine. There was no trace of sadness in her face now. I let myself hope that she'd been sad because she'd thought I'd left school early, and that hope made me smile. I motioned with my finger for her to join me. She looked so startled by this that I wanted to tease her again. So I winked, and her mouth fell open. â€Å"Does he mean you?† Jessica asked rudely. â€Å"Maybe he needs help with his Biology homework,† she said in a low, uncertain voice. â€Å"Um, I'd better go see what he wants.† This was another yes. She stumbled twice on her way to my table, though there was nothing in her way but perfectly even linoleum. Seriously, how had I missed this before? I'd been paying more attention to her silent thoughts, I supposed†¦ What else had I missed? Keep it honest, keep it light, I chanted to myself. She stopped behind the chair across from me, hesitating. I inhaled deeply, through my nose this time rather than my mouth. Feel the burn, I thought dryly. â€Å"Why don't you sit with me today?† I asked her. She pulled the chair out and sat, staring at me the whole while. She seemed nervous, but her physical acceptance was yet another yes. I waited for her to speak. It took a moment, but, finally, she said, â€Å"This is different.† â€Å"Well†¦Ã¢â‚¬  I hesitated. â€Å"I decided as long as I was going to hell, I might as well do it thoroughly.† What had made me say that? I supposed it was honest, at least. And perhaps she'd hear the unsubtle warning my words implied. Maybe she would realize that she should get up and walk away as quickly as possible†¦ She didn't get up. She stared at me, waiting, as if I'd left my sentence unfinished. â€Å"You know I don't have any idea what you mean,† she said when I didn't continue. That was a relief. I smiled. â€Å"I know.† It was hard to ignore the thoughts screaming at me from behind her back – and I wanted to change the subject anyway. â€Å"I think your friends are angry at me for stealing you.† This did not appear to concern her. â€Å"They'll survive.† â€Å"I may not give you back, though.† I didn't even know if I was trying to be honest now, or just trying to tease her again. Being near her made it hard to make sense of my own thoughts. Bella swallowed loudly. I laughed at her expression. â€Å"You look worried.† It really shouldn't be funny†¦ She should worry. â€Å"No.† She was a bad liar; it didn't help that her voice broke. â€Å"Surprised, actually†¦. What brought this on?† â€Å"I told you,† I reminded her. â€Å"I got tired of trying to stay away from you. So I'm giving up.† I held my smile in place with a bit of effort. This wasn't working at all – trying to be honest and casual at the same time. â€Å"Giving up?† she repeated, baffled. â€Å"Yes – giving up trying to be good.† And, apparently, giving up trying to be casual. â€Å"I'm just going to do what I want now, and let the chips fall where they may.† That was honest enough. Let her see my selfishness. Let that warn her, too. â€Å"You lost me again.† I was selfish enough to be glad that this was the case. â€Å"I always say too much when I'm talking to you – that's one of the problems.† A rather insignificant problem, compared to the rest. â€Å"Don't worry,† she reassured me. â€Å"I don't understand any of it.† Good. Then she'd stay. â€Å"I'm counting on that.† â€Å"So, in plain English, are we friends now?† I pondered that for a second. â€Å"Friends†¦Ã¢â‚¬  I repeated. I didn't like the sound of that. It wasn't enough. â€Å"Or not,† she mumbled, looking embarrassed. Did she think I didn't like her that much? I smiled. â€Å"Well, we can try, I suppose. But I'm warning you now that I'm not a good friend for you.† I waited for her response, torn in two – wishing she would finally hear and understand, thinking I might die if she did. How melodramatic. I was turning into such a human. Her heart beat faster. â€Å"You say that a lot.† â€Å"Yes, because you're not listening to me,† I said, too intense again. â€Å"I'm still waiting for you to believe it. If you're smart, you'll avoid me.† Ah, but would I allow her to do that, if she tried? Her eyes tightened. â€Å"I think you've made your opinion on the subject of my intellect clear, too.† I wasn't exactly sure what she meant, but I smiled in apology, guessing that I must have offended her accidentally. â€Å"So,† she said slowly. â€Å"As long as I'm being†¦not smart, we'll try to be friends?† â€Å"That sounds about right.† She looked down, staring intently at the lemonade bottle in her hands. The old curiosity tormented me. â€Å"What are you thinking?† I asked – it was a relief to say the words out loud at last. She met my gaze, and her breathing sped while her cheeks flushed faint pink. I inhaled, tasting that in the air. â€Å"I'm trying to figure out what you are.† I held the smile on my face, locking my features that way, while panic twisted through my body. Of course she was wondering that. She wasn't stupid. I couldn't hope for her to be oblivious to something so obvious. â€Å"Are you having any luck with that?† I asked as lightly as I could manage. â€Å"Not too much,† she admitted. I chuckled in sudden relief. â€Å"What are your theories?† They couldn't be worse than the truth, no matter what she'd come up with. Her cheeks turned brighter red, and she said nothing. I could feel the warmth of her blush in the air. I tried using my persuasive tone on her. It worked well on normal humans. â€Å"Won't you tell me?† I smiled encouragingly. She shook her head. â€Å"Too embarrassing.† Ugh. Not knowing was worse than anything else. Why would her speculations embarrass her? I couldn't stand not knowing. â€Å"That's really frustrating, you know.† My complaint sparked something in her. Her eyes flashed and her words flowed more swiftly than usual. â€Å"No, I can't imagine why that would be frustrating at all – just because someone refuses to tell you what they're thinking, even if all the while they're making cryptic little remarks specifically designed to keep you up at night wondering what they could possibly mean†¦now, why would that be frustrating?† I frowned at her, upset to realize that she was right. I wasn't being fair. She went on. â€Å"Or better, say that person also did a wide range of bizarre things – from saving your life under impossible circumstances one day to treating you like a pariah the next, and he never explained any of that either, even after he promised. That, also, would be very non-frustrating.† It was the longest speech I'd ever heard her make, and it gave me a new quality for my list. â€Å"You've got a bit of a temper, don't you?† â€Å"I don't like double standards.† She was completely justified in her irritation, of course. I stared at Bella, wondering how I could possibly do anything right by her, until the silent shouting in Mike Newton's head distracted me. He was so irate that it made me chuckle. â€Å"What?† she demanded. â€Å"Your boyfriend seems to think I'm being unpleasant to you – he's debating whether or not to come break up our fight.† I would love to see him try. I laughed again. â€Å"I don't know who you're talking about,† she said in an icy voice. â€Å"But I'm sure you're wrong anyway.† I very much enjoyed the way she disowned him with her dismissive sentence. â€Å"I'm not. I told you, most people are easy to read.† â€Å"Except me, of course.† â€Å"Yes. Except for you.† Did she have to be the exception to everything? Wouldn't it have been more fair – considering everything else I had to deal with now – if I could have at least heard something from her head? Was that so much to ask? â€Å"I wonder why that is?† I stared into her eyes, trying again†¦ She looked away. She opened her lemonade and took a quick drink, her eyes on the table. â€Å"Aren't you hungry?† I asked. â€Å"No.† She eyed the empty table between us. â€Å"You?† â€Å"No, I'm not hungry,† I said. I was definitely not that. She stared at the table her lips pursed. I waited. â€Å"Could you do me a favor?† she asked, suddenly meeting my gaze again. What would she want from me? Would she ask for the truth that I wasn't allowed to tell her – the truth I didn't want her to ever, ever know? â€Å"That depends on what you want.† â€Å"It's not much,† she promised. I waited, curious again. â€Å"I just wondered†¦Ã¢â‚¬  she said slowly, staring at the lemonade bottle, tracing its lip with her littlest finger. â€Å"If you could warn me beforehand the next time you decide to ignore me for my own good? Just so I'm prepared.† She wanted a warning? Then being ignored by me must be a bad thing†¦ I smiled. â€Å"That sounds fair,† I agreed. â€Å"Thanks,† she said, looking up. Her face was so relieved that I wanted to laugh with my own relief. â€Å"Then can I have one in return?† I asked hopefully. â€Å"One,† she allowed. â€Å"Tell me one theory.† She flushed. â€Å"Not that one.† â€Å"You didn't qualify, you just promised one answer,† I argued. â€Å"And you've broken promises yourself,† she argued back. She had me there. â€Å"Just one theory – I won't laugh.† â€Å"Yes, you will.† She seemed very sure of that, though I couldn't imagine anything that would be funny about it. I gave persuasion another try. I stared deep into her eyes – an easy thing to do, with eyes so deep – and whispered, â€Å"Please?† She blinked, and her face went blank. Well, that wasn't exactly the reaction I'd been going for. â€Å"Er, what?† she asked. She looked dizzy. What was wrong with her? But I wasn't giving up yet. â€Å"Please tell me just one little theory,† I pleaded in my soft, non-scary voice, holding her eyes in mine. To my surprise and satisfaction, it finally worked. â€Å"Um, well, bitten by a radioactive spider?† Comic books? No wonder she thought I would laugh. â€Å"That's not very creative,† I chided her, trying to hide my fresh relief. â€Å"I'm sorry, that's all I've got,† she said, offended. This relieved me even more. I was able to tease her again. â€Å"You're not even close.† â€Å"No spiders?† â€Å"Nope.† â€Å"And no radioactivity?† â€Å"None.† â€Å"Dang,† she sighed. â€Å"Kryptonite doesn't bother me either,† I said quickly – before she could ask about bites – and then I had to laugh, because she thought I was a superhero. â€Å"You're not supposed to laugh, remember?† I pressed my lips together. â€Å"I'll figure it out eventually,† she promised. And when she did, she would run. â€Å"I wish you wouldn't try,† I said, all teasing gone. â€Å"Because†¦?† I owed her honesty. Still, I tried to smile, to make my words sound less threatening. â€Å"What if I'm not a superhero? What if I'm the bad guy?† Her eyes widened by a fraction and her lips fell slightly apart. â€Å"Oh,† she said. And then, after another second, â€Å"I see.† She'd finally heard me. â€Å"Do you?† I asked, working to conceal my agony. â€Å"You're dangerous?† she guessed. Her breathing hiked, and her heart raced. I couldn't answer her. Was this my last moment with her? Would she run now? Could I be allowed to tell her that I loved her before she left? Or would that frighten her more? â€Å"But not bad,† she whispered, shaking her head, no fear in her clear eyes. â€Å"No, I don't believe that you're bad.† â€Å"You're wrong,† I breathed. Of course I was bad. Wasn't I rejoicing now, that she thought better of me than I deserved? If I were a good person, I would have stayed away from her. I stretched my hand across the table, reaching for the lid to her lemonade bottle as an excuse. She did not flinch away from my suddenly closer hand. She really was not afraid of me. Not yet. I spun the lid like a top, watching it instead of her. My thoughts were in a snarl. Run, Bella, run. I couldn't make myself say the words out loud. She jumped to her feet. â€Å"We're going to be late,† she said, just as I'd started to worry that she'd somehow heard my silent warning. â€Å"I'm not going to class.† â€Å"Why not?† Because I don't want to kill you. â€Å"It's healthy to ditch class now and then.† To be precise, it was healthier for the humans if the vampires ditched on days when human blood would be spilt. Mr. Banner was blood typing today. Alice had already ditched her morning class. â€Å"Well, I'm going,† she said. This didn't surprise me. She was responsible – she always did the right thing. She was my opposite. â€Å"I'll see you later then,† I said, trying for casual again, staring down at the whirling lid. And, by the way, I adore you†¦in frightening, dangerous ways. She hesitated, and I hoped for a moment that she would stay with me after all. But the bell rang and she hurried away. I waited until she was gone, and then I put the lid in my pocket – a souvenir of this most consequential conversation – and walked through the rain to my car. I put on my favorite calming CD – the same one I'd listened to that first day – but I wasn't hearing Debussy's notes for long. Other notes were running through my head, a fragment of a tune that pleased and intrigued me. I turned down the stereo and listened to the music in my head, playing with the fragment until it evolved into a fuller harmony. Instinctively, my fingers moved in the air over imaginary piano keys. The new composition was really coming along when my attention was caught by a wave of mental anguish. I looked toward the distress. Is she going to pass out? What do I do? Mike panicked. A hundred yards away, Mike Newton was lowering Bella's limp body to the sidewalk. She slumped unresponsively against the wet concrete, her eyes closed, her skin chalky as a corpse. I almost took the door off the car. â€Å"Bella?† I shouted. There was no change in her lifeless face when I yelled her name. My whole body went colder than ice. I was aware of Mike's aggravated surprise as I sifted furiously through his thoughts. He was only thinking of his anger toward me, so I didn't know what was wrong with Bella. If he'd done something to harm her, I would annihilate him. â€Å"What's wrong – is she hurt?† I demanded, trying to focus his thoughts. It was maddening to have to walk at a human pace. I should not have called attention to my approach. Then I could hear her heart beating and her even breath. As I watched, she squeezed her eyes more tightly shut. That eased some of my panic. I saw a flicker of memories in Mike's head, a splash of images from the Biology room. Bella's head on our table, her fair skin turning green. Drops of red against the white cards†¦ Blood typing. I stopped where I was, holding my breath. Her scent was one thing, her flowing blood was another altogether. â€Å"I think she's fainted,† Mike said, anxious and resentful at the same time. â€Å"I don't know what happened, she didn't even stick her finger.† Relief washed through me, and I breathed again, tasting the air. Ah, I could smell the tiny flow of Mike Newton's puncture wound. Once, that might have appealed to me. I knelt beside her while Mike hovered next to me, furious at my intervention. â€Å"Bella. Can you hear me?† â€Å"No,† she moaned. â€Å"Go away.† The relief was so exquisite that I laughed. She was fine. â€Å"I was taking her to the nurse,† Mike said. â€Å"But she wouldn't go any farther.† â€Å"I'll take her. You can go back to class,† I said dismissively. Mike's teeth clenched together. â€Å"No. I'm supposed to do it.† I wasn't going to stand around arguing with the wretch. Thrilled and terrified, half-grateful to and half-aggrieved by the predicament which made touching her a necessity, I gently lifted Bella from the sidewalk and held her in my arms, touching only her clothes, keeping as much distance between our bodies as possible. I was striding forward in the same movement, in a hurry to have her safe – farther away from me, in other words. Her eyes popped open, astonished. â€Å"Put me down,† she ordered in a weak voice – embarrassed again, I guessed from her expression. She didn't like to show weakness. I barely heard Mike's shouted protest behind us. â€Å"You look awful,† I told her, grinning because there was nothing wrong with her but a light head and a weak stomach. â€Å"Put me back on the sidewalk,† she said. Her lips were white. â€Å"So you faint at the sight of blood?† Could it get any more ironic? She closed her eyes and pressed her lips together. â€Å"And not even your own blood,† I added, my grin widening. We were to the front office. The door was propped an inch open, and I kicked it out of my way. Ms. Cope jumped, startled. â€Å"Oh, my,† she gasped as she examined the ashen girl in my arms. â€Å"She fainted in Biology,† I explained, before her imagination could get too out of hand. Ms. Cope hurried to open the door to the nurse's office. Bella's eyes were open again, watching her. I heard the elderly nurse's internal astonishment as I laid the girl carefully on the one shabby bed. As soon as Bella was out of my arms, I put the width of the room between us. My body was too excited, too eager, my muscles tense and the venom flowing. She was so warm and fragrant. â€Å"She's just a little faint,† I reassured Mrs. Hammond. â€Å"They're blood typing in biology.† She nodded, understanding now. â€Å"There's always one.† I stifled a laugh. Trust Bella to be that one. â€Å"Just lie down for a minute, honey,† Mrs. Hammond said. â€Å"It'll pass.† â€Å"I know,† Bella said. â€Å"Does this happen often?† the nurse asked. â€Å"Sometimes,† Bella admitted. I tried to disguise my laughter as coughing. This brought me to the nurse's attention. â€Å"You can go back to class now,† she said. I looked her straight in the eye and lied with perfect confidence. â€Å"I'm supposed to stay with her.† Hmm. I wonder†¦ oh well. Mrs. Hammond nodded. It worked just fine on her. Why did Bella have to be so difficult? â€Å"I'll go get you some ice for your forehead, dear,† the nurse said, slightly uncomfortable from looking into my eyes – the way a human should be – and left the room. â€Å"You were right,† Bella moaned, closing her eyes. What did she mean? I jumped to the worst conclusion: she'd accepted my warnings. â€Å"I usually am,† I said, trying to keep the amusement in my voice; it sounded sour now. â€Å"But about what in particular this time?† â€Å"Ditching is healthy,† she sighed. Ah, relief again. She was silent then. She just breathed slowly in and out. Her lips were beginning to turn pink. Her mouth was slightly out of balance, her lower lip just a little too full to match the top. Staring at her mouth made me feel strange. Made me want to move closer to her, which was not a good idea. â€Å"You scared me for a minute there,† I said – to restart the conversation so that I could hear her voice again. â€Å"I thought Newton was dragging your dead body off to bury it in the woods.† â€Å"Ha ha,† she said. â€Å"Honestly – I've seen corpses with better color.† This was actually true. â€Å"I was concerned that I might have to avenge your murder.† And I would have. â€Å"Poor Mike,† she sighed. â€Å"I'll bet he's mad.† Fury pulsed through me, but I contained it quickly. Her concern was surely just pity. She was kind. That was all. â€Å"He absolutely loathes me,† I told her, cheered by that idea. â€Å"You can't know that.† â€Å"I saw his face – I could tell.† It was probably true that reading his face would have given me enough information to make that particular deduction. All this practice with Bella was sharpening my skill at reading human expressions. â€Å"How did you see me? I thought you were ditching.† Her face looked better – the green undertone had vanished from her translucent skin. â€Å"I was in my car, listening to a CD.† Her expression twitched, like my very ordinary answer had surprised her somehow. She opened her eyes again when Mrs. Hammond returned with an ice pack. â€Å"Here you go, dear,† the nurse said as she laid it across Bella's forehead. â€Å"You're looking better.† â€Å"I think I'm fine,† Bella said, and she sat up while pulling the ice pack away. Of course. She didn't like to be taken care of. Mrs. Hammond's wrinkled hands fluttered toward the girl, as if she were going to push her back down, but just then Ms. Cope opened the door to the office and leaned in. With her appearance came the smell of fresh blood, just a whiff. Invisible in the office behind her, Mike Newton was still very angry, wishing the heavy boy he dragged now was the girl who was in here with me. â€Å"We've got another one,† Ms. Cope said. Bella quickly jumped down from the cot, eager to be out of the spotlight. â€Å"Here,† she said, handing the compress back to Mrs. Hammond. â€Å"I don't need this.† Mike grunted as he half-shoved Lee Stevens through the door. Blood was still dripping down the hand Lee held to his face, trickling toward his wrist. â€Å"Oh no.† This was my cue to leave – and Bella's, too, it seemed. â€Å"Get out to the office, Bella.† She stared up at me with bewildered eyes. â€Å"Trust me – go.† She whirled and caught the door before it had swung shut, rushing through to the office. I followed a few inches behind her. Her swinging hair brushed my hand†¦ She turned to look at me, still wide-eyed. â€Å"You actually listened to me.† That was a first. Her small nose wrinkled. â€Å"I smelled the blood.† I stared at her in blank surprise. â€Å"People can't smell blood.† â€Å"Well, I can – that's what makes me sick. It smells like rust†¦and salt.† My face froze, still staring. Was she really even human? She looked human. She felt soft as a human. She smelled human – well, better actually. She acted human†¦sort of. But she didn't think like a human, or respond like one. What other option was there, though? â€Å"What?† she demanded. â€Å"It's nothing.† Mike Newton interrupted us then, entering the room with resentful, violent thoughts. â€Å"You look better,† he said to her rudely. My hand twitched, wanting to teach him some manners. I would have to watch myself, or I would end up actually killing this obnoxious boy. â€Å"Just keep your hand in your pocket,† she said. For one wild second, I thought she was talking to me. â€Å"It's not bleeding anymore,† he answered sullenly. â€Å"Are you going back to class?† â€Å"Are you kidding? I'd just have to turn around and come back.† That was very good. I'd thought I was going to have to miss this whole hour with her, and now I got extra time instead. I felt greedy, a miser hording over each minute. â€Å"Yeah, I guess†¦Ã¢â‚¬  Mike mumbled. â€Å"So are you going this weekend? To the beach?† Ah, they had plans. Anger froze me in place. It was a group trip, though. I'd seen some of this in other students' heads. It wasn't just the two of them. I was still furious. I leaned motionlessly against the counter, trying to control myself. â€Å"Sure, I said I was in,† she promised him. So she'd said yes to him, too. The jealousy burned, more painful than thirst. No, it was just a group outing, I tried to convince myself. She was just spending the day with friends. Nothing more. â€Å"We're meeting at my dad's store, at ten.† And Cullen's NOT invited. â€Å"I'll be there,† she said. â€Å"I'll see you in Gym, then.† â€Å"See you,† she replied. He shuffled off to his class, his thoughts full of ire. What does she see in that freak? Sure, he's rich, I guess. Chicks think he's hot, but I don't see that. Too†¦too perfect. I bet his dad experiments with plastic surgery on all of them. That's why they're all so white and pretty. It's not natural. And he's sort of†¦scary-looking. Sometimes, when he stares at me, I'd swear he's thinking about killing me†¦ Freak†¦ Mike wasn't entirely unperceptive. â€Å"Gym,† Bella repeated quietly. A groan. I looked at her, and saw that she was sad about something again. I wasn't sure why, but it was clear that she didn't want to go to her next class with Mike, and I was all for that plan. I went to her side and bent close to her face, feeling the warmth of her skin radiating out to my lips. I didn't dare breathe. â€Å"I can take care of that,† I murmured. â€Å"Go sit down and look pale.† She did as I asked, sitting in one of the folding chairs and leaning her head back against the wall, while, behind me, Ms. Cope came out of the back room and went to her desk. With her eyes closed, Bella looked as if she'd passed out again. Her full color hadn't returned yet. I turned to the secretary. Hopefully Bella was paying attention to this, I thought sardonically. This was how a human was supposed to respond. â€Å"Ms. Cope?† I asked, using my persuasive voice again. Her eyelashes fluttered, and her heart sped up. Too young, get a hold of yourself! â€Å"Yes?† That was interesting. When Shelly Cope's pulse quickened, it was because she found me physically attractive, not because she was frightened. I was used to that around human females†¦yet I hadn't considered that explanation for Bella's racing heart. I rather liked that. Too much, in fact. I smiled, and Mrs. Cope's breathing got louder. â€Å"Bella has gym next hour, and I don't think she feels well enough. Actually, I was thinking I should take her home now. Do you think you could excuse her from class?† I stared into her depthless eyes, enjoying the havoc that this wreaked on her thought processes. Was it possible that Bella†¦? Mrs. Cope had to swallow loudly before she answered. â€Å"Do you need to be excused, too, Edward?† â€Å"No, I have Mrs. Goff, she won't mind.† I wasn't paying much attention to her now. I was exploring this new possibility. Hmm. I'd like to believe that Bella found me attractive like other humans did, but when did Bella ever have the same reactions as other humans? I shouldn't get my hopes up. â€Å"Okay, it's all taken care of. You feel better, Bella.† Bella nodded weakly – overacting a bit. â€Å"Can you walk, or do you want me to carry you again?† I asked, amused by her poor theatrics. I knew she would want to walk – she wouldn't want to be weak. â€Å"I'll walk,† she said. Right again. I was getting better at this. She got up, hesitating for a moment as if to check her balance. I held the door for her, and we walked out into the rain. I watched her as she lifted her face to the light rain with her eyes closed, a slight smile on her lips. What was she thinking? Something about this action seemed off, and I quickly realized why the posture looked unfamiliar to me. Normal human girls wouldn't raise their faces to the drizzle that way; normal human girls usually wore makeup, even here in this wet place. Bella never wore makeup, nor should she. The cosmetics industry made billions of dollars a year from women who were trying to attain skin like hers. â€Å"Thanks,† she said, smiling at me now. â€Å"It's worth getting sick to miss Gym.† I stared across the campus, wondering how to prolong my time with her. â€Å"Anytime,† I said. â€Å"So are you going? This Saturday, I mean?† She sounded hopeful. Ah, her hope was soothing. She wanted me with her, not Mike Newton. And I wanted to say yes. But there were many things to consider. For one, the sun would be shining this Saturday†¦ â€Å"Where are you all going, exactly?† I tried to keep my voice nonchalant, as if it didn't matter much. Mike had said beach, though. Not much chance of avoiding sunlight there. â€Å"Down to La Push, to First Beach.† Damn. Well, it was impossible, then. Anyway, Emmett would be irritated if I cancelled our plans. I glanced down at her, smiling wryly. â€Å"I really don't think I was invited.† She sighed, already resigned. â€Å"I just invited you.† â€Å"Let's you and I not push poor Mike any further this week. We don't want him to snap.† I thought about snapping poor Mike myself, and enjoyed the mental picture intensely. â€Å"Mike-schmike,† she said, dismissive again. I smiled widely. And then she started to walk away from me. Without thinking about my action, I reached out and caught her by the back of her rain jacket. She jerked to a stop. â€Å"Where do you think you're going?† I was almost angry that she was leaving me. I hadn't had enough time with her. She couldn't go, not yet. â€Å"I'm going home,† she said, baffled as to why this should upset me. â€Å"Didn't you hear me promise to take you safely home? Do you think I'm going to let you drive in your condition?† I knew she wouldn't like that – my implication of weakness on her part. But I needed to practice for the Seattle trip, anyway. See if I could handle her proximity in an enclosed space. This was a much shorter journey. â€Å"What condition?† she demanded. â€Å"And what about my truck?† â€Å"I'll have Alice drop it off after school.† I pulled her back to my car carefully, as I now knew that walking forward was challenging enough for her. â€Å"Let go!† she said, twisting sideways and nearly tripping. I held one hand out to catch her, but she righted herself before it was necessary. I shouldn't be looking for excuses to touch her. That started me thinking about Ms. Cope's reaction to me, but I filed it away for later. There was much to be considered on that front. I let her go beside the car, and she stumbled into the door. I would have to be even more careful, to take into account her poor balance†¦ â€Å"You are so pushy!† â€Å"It's open.† I got in on my side and started the car. She held her body rigidly, still outside, though the rain had picked up and I knew she didn't like the cold and wet. Water was soaking through her thick hair, darkening it to near black. â€Å"I am perfectly capable of driving myself home!† Of course she was – I just wasn't capable of letting her go. I rolled her window down and leaned toward her. â€Å"Get in, Bella.† Her eyes narrowed, and I guessed that she was debating whether or not to make a run for it. â€Å"I'll just drag you back,† I promised, enjoying the chagrin on her face when she realized I meant it. Her chin stiffly in the air, she opened her door and climbed in. Her hair dripped on the leather and her boots squeaked against each other. â€Å"This is completely unnecessary,† she said coldly. I thought she looked embarrassed under the pique. I just turned up the heater so she wouldn't be uncomfortable, and set the music to a nice background level. I drove out toward the exit, watching her from the corner of my eye. Her lower lip was jutting out stubbornly. I stared at this, examining how it made me feel†¦ thinking of the secretary's reaction again†¦ Suddenly she looked at the stereo and smiled, her eyes widening. â€Å"Clair de Lune?† she asked. A fan of the classics? â€Å"You know Debussy?† â€Å"Not well,† she said. â€Å"My mother plays a lot of classical music around the house – I only know my favorites.† â€Å"It's one of my favorites, too.† I stared at the rain, considering that. I actually had something in common with the girl. I'd begun to think that we were opposites in every way. She seemed more relaxed now, staring at the rain like me, with unseeing eyes. I used her momentary distraction to experiment with breathing. I inhaled carefully through my nose. Potent. I clutched the steering wheel tighter. The rain made her smell better. I wouldn't have thought that was possible. Stupidly, I was suddenly imaging how she would taste. I tried to swallow against the burn in my throat, to think of something else. â€Å"What is your mother like?† I asked as a distraction. Bella smiled. â€Å"She looks a lot like me, but she's prettier.† I doubted that. â€Å"I have too much Charlie in me,† she went on. â€Å"She's more outgoing than I am, and braver.† I doubted that, too. â€Å"She's irresponsible and slightly eccentric, and she's a very unpredictable cook. She's my best friend.† Her voice had turned melancholy; her forehead creased. Again, she sounded more like parent than child. I stopped in front of her house, wondering too late if I was supposed to know where she lived. No, this wouldn't be suspicious in such a small town, with her father a public figure†¦ â€Å"How old are you, Bella?† She must be older than her peers. Perhaps she'd been late to start school, or been held back†¦that wasn't likely, though. â€Å"I'm seventeen,† she answered. â€Å"You don't seem seventeen.† She laughed. â€Å"What?† â€Å"My mom always says I was born thirty-five years old and that I get more middleaged every year.† She laughed again, and then sighed. â€Å"Well, someone has to be the adult.† This clarified things for me. I could see it now†¦how the irresponsible mother helped explain Bella's maturity. She'd had to grow up early, to become the caretaker. That's why she didn't like being cared for – she felt it was her job. â€Å"You don't seem much like a junior in high school yourself,† she said, pulling me from my reverie. I grimaced. For everything I perceived about her, she perceived too much in return. I changed the subject. â€Å"So why did your mother marry Phil?† She hesitated a minute before answering. â€Å"My mother†¦she's very young for her age. I think Phil makes her feel even younger. At any rate, she's crazy about him.† She shook her head indulgently. â€Å"Do you approve?† I wondered. â€Å"Does it matter?† she asked. â€Å"I want her to be happy†¦and he is who she wants.† The unselfishness of her comment would have shocked me, except that it fit in all too well with what I'd learned of her character. â€Å"That's very generous†¦I wonder.† â€Å"What?† â€Å"Would she extend the same courtesy to you, do you think? No matter who your choice was?† It was a foolish question, and I could not keep my voice casual while I asked it. How stupid to even consider someone approving of me for their daughter. How stupid to even think of Bella choosing me. â€Å"I-I think so,† she stuttered, reacting in some way to my gaze. Fear†¦or attraction? â€Å"But she's the parent, after all. It's a little bit different,† she finished. I smiled wryly. â€Å"No one too scary then.† She grinned at me. â€Å"What do you mean by scary? Multiple facial piercings and extensive tattoos?† â€Å"That's one definition, I suppose.† A very nonthreatening definition, to my mind. â€Å"What's your definition?† She always asked the wrong questions. Or exactly the right questions, maybe. The ones I didn't want to answer, at any rate. â€Å"Do you think that I could be scary?† I asked her, trying to smile a little. She thought it through before answering me in a serious voice. â€Å"Hmm†¦I think you could be, if you wanted to.† I was serious, too. â€Å"Are you frightened of me now?† She answered at once, not thinking this one through. â€Å"No.† I smiled more easily. I did not think she was entirely telling the truth, but nor was she truly lying. She wasn't frightened enough to want to leave, at least. I wondered how she would feel if I told her she was having this discussion with a vampire. I cringed internally at her imagined reaction. â€Å"So, now are you going to tell me about your family? It's got to be a much more interesting story than mine.† A more frightening one, at least. â€Å"What do you want to know?† I asked cautiously. â€Å"The Cullens adopted you?† â€Å"Yes.† She hesitated, then spoke in a small voice. â€Å"What happened to your parents?† This wasn't so hard; I wasn't even having to lie to her. â€Å"They died a very long time ago.† â€Å"I'm sorry,† she mumbled, clearly worried about having hurt me. She was worried about me. â€Å"I don't really remember them that clearly,† I assured her. â€Å"Carlisle and Esme have been my parents for a long time now.† â€Å"And you love them,† she deduced. I smiled. â€Å"Yes. I couldn't imagine two better people.† â€Å"You're very lucky.† â€Å"I know I am.† In that one circumstance, the matter of parents, my luck could not be denied. â€Å"And your brother and sisters?† If I let her push for too many details, I would have to lie. I glanced at the clock, disheartened that my time with her was up. â€Å"My brother and sister, and Jasper and Rosalie for that matter, are going to be quite upset if they have to stand in the rain waiting for me.† â€Å"Oh, sorry, I guess you have to go.† She didn't move. She didn't want our time to be up, either. I liked that very, very much. â€Å"And you probably want your truck back before Chief Swan gets home, so you don't have to tell him about the Biology incident.† I grinned at the memory of her embarrassment in my arms. â€Å"I'm sure he's already heard. There are no secrets in Forks.† She said the name of the town with distinct distaste. I laughed at her words. No secrets, indeed. â€Å"Have fun at the beach.† I glanced at the pouring rain, knowing it would not last, and wishing more strongly than usual that it could. â€Å"Good weather for sunbathing.† Well, it would be by Saturday. She would enjoy that. â€Å"Won't I see you tomorrow?† The worry in her tone pleased me. â€Å"No. Emmett and I are starting the weekend early.† I was mad at myself now for having made the plans. I could break them†¦but there was no such thing as too much hunting at this point, and my family was going to be concerned enough about my behavior without me revealing how obsessive I was turning. â€Å"What are you going to do?† she asked, not sounded happy with my revelation. Good. â€Å"We're going to be hiking in the Goat Rocks Wilderness, just south of Rainier.† Emmett was eager for bear season. â€Å"Oh, well, have fun,† she said halfheartedly. Her lack of enthusiasm pleased me again. As I stared at her, I began to feel almost agonized at the thought of saying even a temporary goodbye. She was just so soft and vulnerable. It seemed foolhardy to let her out of my sight, where anything could happen to her. And yet, the worst things that could happen to her would result from being with me. â€Å"Will you do something for me this weekend?† I asked seriously. She nodded, her eyes wide and bewildered by my intensity. Keep it light. â€Å"Don't be offended, but you seem to be one of those people who just attract accidents like a magnet. So†¦try not to fall into the ocean or get run over or anything, all right?† I smiled ruefully at her, hoping she couldn't see the sadness in my eyes. How much I wished that she wasn't so much better off away from me, no matter what might happen to her there. Run, Bella, run. I love you too much, for your good or mine. She was offended by my teasing. She glared at me. â€Å"I'll see what I can do,† she snapped, jumping out into the rain and slamming the door as hard as she could behind her. Just like an angry kitten that believes it's a tiger. I curled my hand around the key I'd just picked from her jacket pocket, and smiled as I drove away.

Acceptance Or Rejection Of The Null Hypothesis Economics Essay

Acceptance Or Rejection Of The Null Hypothesis Economics Essay The appropriate value of t is 2.100. Since we are concerned whether b (the slope of original regression line) is significantly different fro B (the hypothesized slope of population regression), this is a two tailed test, and the critical values are  ±2.100. The standardized regression coefficient is 0.063, which is inside the acceptance region for our hypothesis test. Therefore, we accept null hypothesis that B is equal to 0.01. Step 6: Interpretation of the Result There is not enough difference between b and 0.01 for us to conclude that that B has changed from its historical value. Because of this, we feel that a one hundred percent increase in inflation would increase the poverty headcount by around 0.01%, as it has in the past. 2. Inflation and Ginni Coefficient The slope for the regression line that shows a relationship between inflation and gini coefficient is 0.5956. This means that a 100% increase in inflation would result in 0.5956% increase in gini coefficient. Now we wou ld perform the same hypothesis testing procedure to determine the authenticity of slope and whether the slope justifies the relationship between inflation and gini coefficient. Step 1: State the Null and the Alternative Hypothesis Let B denotes the hypothesized slope of actual regression line, the value of the actual slope of regression line is b = 0.5956. The first step is to find some value for B to compare with b= 0.5956. Suppose that over an extended past period of time, the slope of the relationship between inflation and gini coefficient was 0.5. To test whether this is still the case, we could define the hypothesis as: H0: B= 0.50 (Null hypothesis) H1: B à ¢Ã¢â‚¬ °Ã‚   0.50 (Alternative hypothesis) Step 2: Decide on Significance Level and Degree of Freedom Significance level ÃŽÂ ± = 0.05 and Degree of freedom (df) = n-2 = 19 – 2 = 17 Step 3: Find out Standard Error of b Where Sb = standard error of the regression coefficient Se = standard error of estimate Xi = valu es of the independent variable X-Bar = mean of the values of the independent variable n = number of the data points Year X Y X – X-Bar (X-X-Bar)2 Y2 XY 1963-64 4.19 38.6 -2.607368 6.79837008 1489.96 161.734 1966-67 8.58 35.5 1.7826316 3.17777535 1260.25 304.59 1968-69 1.58 33.6 -5.217368 27.2209332 1128.96 53.088 1969-70 4.12 33.6 -2.677368 7.16830166 1128.96 138.432 1970-71 5.71 33 -1.087368 1.18237008 1089 188.43 1971-72 4.69 34.5 -2.107368 4.44100166 1190.25 161.805 1979-80 8.33 37.3 1.5326316 2.34895956 1391.29 310.709 1984-85 5.67 36.9 -1.127368 1.27095956 1361.61 209.223 1985-86 4.35 35.5 -2.447368 5.98961219 1260.25 154.425 1986-87 3.6 34.6 -3.197368 10.2231648 1197.16 124.56 1987-88 6.29 34.8 -0.507368 0.25742271 1211.04 218.892 1990-91 12.66 40.7 5.8626316 34.370449 1656.49 515.262 1992-93 9.83 41 3.0326316 9.19685429 1681 403.03 1993-94 11.27 40 4.4726316 20.0044332 1600 450.8 1996-97 11.8 40 5.0026316 25.0263227 1600 472 1998-99 5.74 41 -1.057368 1.11802798 1681 23 5.34 2001-02 3.54 27.52 -3.257368 10.610449 757.3504 97.4208 2004-05 9.28 29.76 2.4826316 6.16345956 885.6576 276.1728 2005-06 7.92 30.18 1.1226316 1.26030166 910.8324 239.0256 Summation 129.15 678.06 0 177.829168 24481.06 4714.9392 X-Bar = 6.79 Y-Bar = 35.68 Se = 3.59 By putting Se and Summation (X-X-Bar) 2 in Sb, we have Sb = 0.269 Step 4: Find the Standardized Value of b t = b – BH0/Sb Where b = slope of fitted regression BH0 = actual hypothesized slope Sb = standard error of the regression coefficient By putting the values of the above in t, we have t = 0.355 Step 5: Conclusion on Acceptance or Rejection of the Null Hypothesis The appropriate value of t is 2.10. Since we are concerned whether b (the slope of original regression line) is significantly different from B (the hypothesized slope of population regression), this is a two tailed test, and the critical values are  ±2.10. The standardized regression coefficient is 0.355, which is inside the acceptance region for our hypothesis test. Therefore, we accept null hypothesis that B is equal to 0.5 Step 6: Interpretation of the Result There is not enough difference between b and 0.50 for us to conclude that that B has changed from its historical value. Because of this, we feel that a one hundred percent increase in inflation would result in an increase of 0.50% in gini coefficient, as it has in the past.

Paper on the book Essay Example | Topics and Well Written Essays - 500 words

Paper on the book - Essay Example A clear analysis of the period reveals that Ferdinand’s assassination was a less aberrant attack and more typical of the times, and challenges the argument of those who perceive the years prior to the war as relatively tranquil. Several other occurrences during the period indicate that the period was quite abnormal than one might think. These events include the assassination of protuberant figures including Australia’s empress (1898), president of French republic (1894), king of Italy (1900) and the 1901 killing of American president. Additionally, the outrageous fact that terrorists in those days killed millions of people by driving explosive-laden vehicles into buildings indicates technical restrictions (Stone, 196). However, these were not anomalous events during the period considering the many activities that had transpired and disrupted peace in Europe. Although the first three quarters of the 19th century were quite tumultuous, the evidence presented by Norman comprehensively convinces readers that terming the period 1878-1919 as a turning point in Europe on the basis of the tranquil that was experienced is merely a misrepresentation of facts. The internal commotions and raucousness experienced were so much. Germany failed to win WWI due to poor military strategies, poor Kaiser’s coordination, and was fighting against a highly tactical and military powerful entente that could balance means and will with ends. German naval tactics reveal misappropriation and misallocation. Considering that it had greatly been weakened by the Britain naval in the years prior to WWI, the navy could be better organized and resources allocated effectively if Germany’s dream of winning the war were to materialize. Instead, 1895-1914, billions were irresponsibly used for surface fleets, scoffing funding for inventions such as submarines, while only twenty five of its submarines were in a

Employees Morale Essay Example | Topics and Well Written Essays - 500 words

Employees Morale - Essay Example Therefore, the company should employ a comprehensive exposure strategy for employees to ensure that they develop skills compatible with emerging trends in the rental car business (Bruce, 2003). The company should practice workforce exchange programs with other organizations offering car rental services in order motivate employees to appreciate the company’s working environment. The employees should be given attractive remuneration to promote loyalty and energize their working potential (Bowles, Cooper & Palgrave, 2009). The company should plan for reasonable allowance strategy to ensure that hardworking employees are reward proportionately to their contribution to the company’s success. The employees should be awarded attractive entertainment allowance to facilitate adequate refreshment when on holiday. The company working schedule should be well structured ensure that it is convenient for all employees. The employees should not be made to report very early and leave late from work. Overworking the employees lowers their working morale and sometimes pressures them to produce substandard results (Amar, 2001). In this regard, the company should consider restructuring the work program and allow workers to operate in shifts to minimize fatigue and work pressure. The company should focus on appreciating the hardworking workers to encourage them to put more efforts in their endeavor.. For instance, the employees showing distinguished performance should be promoted to higher ranks and their salaries to be reviewed to boost their working spirit. Research has shown that promotion is a significant booster of employees’ morale. Employees will always work hard to get to high levels of their career. The company should not interfere with employee freedom at the work place. The employees should be allowed to mingle and share experiences

Civil rights movements in California Assignment

Civil rights movements in California - Assignment Example Mark Arax claim that society comprise of isolated individuals, passionate about personal gain and acquisition instead of the social good is an unproven hypothesis. Largely, it is an individual idea that lacks public perception and daily human concerns. Mark Arax based his argument on a few failed strategies championed by selfish individuals who pursued to satisfy personal interests. Rather, he should focus on the main theme of social movements of enhancing every citizens’ lives. California Dream predominantly expresses individual freedom and personal gain. Social movements promote wide range of political activities based on shared familiarities of injustice, prejudice, and oppression of certain societal groups. The movements work around identity political realizations, which typically aim to secure the political freedom of a specific group marginalized within its larger context. Struggle for civil liberties and California dream have common themes. Throughout American history s tarting from colonial period through to the new millennium, entail civil society struggles to make the world a better place for present and future generations. Governor Jerry Brown's proposal to divert water from the San Joaquin Delta exhibits controversy. Conversely, both locations require water resource to facilitate economic activities and ensure better lives of the citizens. Rogene Reynolds claims wealthy individuals are interested in transferring the water away from them shares the predicament.

Critical response Essay Example | Topics and Well Written Essays - 750 words

Critical response - Essay Example After staying in the background for decades, both countries are now open to business with America and have added their low-cost labor forces into the world’s labor pool, not only dramatically decreasing wages of Americans but in fact pushing many of them out of employment. American companies are forced to hire cheap foreign labor to remain favorable in terms of dividends and thus competitive for their shareholders. I f they do not, their dividends will remain low and stockholders will compare them to companies with low costs. The interesting fact is that these stock holders are not just huge corporate giants but average Americans as well. â€Å"The American middle class has become an army of investors whose tough demands are translating into more layoffs among their own ranks† (Meredith 2007: 193.2). In the short term this benefits investors but in the long run loss of jobs makes them worse off. Another interesting phenomena paradox is the â€Å"Walmart† culture (Meredith 2007: 191.3). Walmat stocks abundant supply of cheap Chinese and India goods that benefits average consumers by giving them extremely low prices and a high range of products. So where Americans are being laid off as high cost factories in America shut down, they are at the same time benefitting as consumers. The reading points out that while the globalized era is posing to be a huge threat, it is at the same time bringing lots of benefits. Trade with china keeps down interest rates and inflation in America. Chinese Government has the world’s largest dollar reserves which it buys in US treasury bonds in order to keep its own exchange rate stable (Meredith 2007: 194.2). Demand for bonds raises their prices and forces interest rates to remain low due to their negative relationship. This has led to average Americans to enjoy lower amounts of credit and a larger affordability for loan, enabling them to buy houses more often than before. China

Disability Discrimination & OSHA Laws Essay Example | Topics and Well Written Essays - 500 words

Disability Discrimination & OSHA Laws - Essay Example This would create an undue hardship for the Postal Service. The Postal Service could also claim that Davis is not qualified for the clerk position. Since she is deaf, Davis cannot answer the phone. That is a major requirement of the job. Under the American Disabilities Act, a disabled American must be qualified for the desired position. In the case of Halsey, as defined before by the American Disabilities Act, he is also disabled. The question becomes how disabled is Halsey? He could fail the vision test for a driver’s license, but still see well enough to service vending machines. Coca-Cola Bottling Company hired him as a vending machine serviceperson. Since they hired him, one assumes he was qualified for the job. The issue then becomes if it would be an undue hardship for Coca-Cola to accommodate Halsey. Coca-Cola is a large corporation, with almost unlimited resources. It would not be an undue hardship to provide transportation for Halsey, or even elect to have Halsey to service the vending machines other employees bring back to the Coca-Cola plant. An accommodation could be reached between the two parties. In the case of Whirlpool, Whirlpool knows of the hazardous condition caused by the conveyor belt above the employees’ work station. The wire mesh guard screen was placed to safeguard employees. The company policy is for the employees cleaning the mesh to stand on the wire frames. Not all of the items can be reached by standing on the wire frames, forcing the employees to stand on the wire mesh. Keller has a few options. Keller can stop doing a job he feels is dangerous. He can stop retrieving objects out of reach of the wire frame, due to the dangerous situation. If Whirlpool knows the job cannot be preformed without going on the wire mesh, other safety measures should be put into place. If Whirlpool demands Keller to do the job or else, Keller can call OSHA and become a whistleblower.

Change Management (Business) Marketing Study Essay

Change Management (Business) Marketing Study - Essay Example The report will also examine the global market relative to marketing situation, including an industry-scoped PESTLE analysis. The report will follow with a recommended framework for change management and continuous improvement. The goal of this report is to serve as an informative analysis that can be utilized from its general structure to develop more specific strategies within the management of the construction industry market. According to the Department for Trade and Industry's (DTI 2007) annual report on the construction industry, there are over 250,000 individual firms operating in the UK construction sector which primarily operate within the residential, non-residential and civil engineering sectors. The construction industry employs two million persons. The focus of the construction industry is the acquisition of construction materials, management of suppliers and manufacturers, building design, service, and installation. This includes private contractors, sub-contractors and advisors in design, building, operation and refurbishing of buildings (DTI 2007). It is important to note that the construction industry is the second largest industry in the EU and contributes to slightly over eight percent of the national gross value (DTI 2007). The nature of t Nature Of Construction Market The nature of the construction industry market is that it is based on the national, and sometimes global, economy. The construction industry exists because the individuals within a community desire the building of certain constructs based on factors such as income, interest rates, value of money (in or EU), and thus the construction industry is at once a good indicator of economic health and subjected to the slowing or increasing of a nation's economic health. The construction market can exist on a local or global scale, increasingly the construction company must be able to function on multiple market levels. In 2005, there were approximately 15,000 million new housing orders in both public and private sectors (DTI 2007), not including refurbishment or maintenance of old houses. In the same year, 25,000 million was requisitioned for contracted infrastructure in private, industrial, and public buildings. According to Market & Business Development (MBD 2007) the construction market is expected to reach its peak in development and sales in 2006 with a growth rate of 4 %. Further market analysis by MBD (2007) shows that the construction industry output has an overall growth rate of 35% between 2002 and 2005, yet the construction market is foreshadowed by the upcoming industry pressure due to earnings growth continues to pick up and energy costs increase, combined with a slowing of public sector contracts. Analysis Of The Global Market The EU construction sector is a

Concussions in football Essay Example for Free

Concussions in football Essay Injuries in professional sports are always occurring, but in football the risk of injury is much higher considering it is a contact sport. Although One of Americas most precious pastimes; American Football is the most dangerous sport because of the risk of concussions. Concussions in football have been a major concern though the years especially in recent years and the seriousness of this particular injury must be bought to the attention of not only the players, but to the media and professional leagues . Advancements in technology and health protocols have brought attention to the actual severity of concussions in football. Many NFL players that have had a concussion, or multiple concussions, not only struggle when they return to the field, but also struggle with normal aspects of their lives. The relevance of concussions has risen so far as of late, that former NFL players who previously suffered from concussions have gotten together to sue the NFL for improper information and protocol when they suffered their concussions. The concern of concussions has risen to a point where people have debated whether football should be banned altogether. The risk of concussions in football is very high compared to other sports. The constant contact and trauma that the head takes from being hit can sometimes lead to a concussion, but they are usually sustained through one powerful hit to the head. â€Å"The impact of one player running into another has almost twice the strength then one person running into a standing, or placed individual† (Onion). This would prove noteworthy for the kickoff or punt return aspect of football. During these situations the opposing teams are running full speed toward each other, and the ball carrier is usually the one who is at the most risk for concussion. The discussion of removing kickoffs and punts has been a major topic of discussion because of these facts. There are also different levels of concussions. â€Å"A minor concussion or grade one concussion may involve being dazed, head ringing, a minor headache, and a very brief loss of consciousness. A more severe concussion such as a grade 2 concussion may cause being blacked out, confusion, a pounding headache, and blurred vision. The most server concussion or grade 3 concussion may cause being blacked out, nausea or vomiting, loss of short term memory, and saying the same thing over and over†(Swierzewski). The most dangerous symptoms occur when a player is cleared to play before he has fully recovered from their concussion. When an athlete is cleared to play before he has fully recovered that is when death can occur. Retired players that have played professional football at some time in their life who sustained concussions have also had many problems in their retirement. One of these many retired players include former defensive lineman George Visger who frequently has memory loss or severe headaches. Visger said that he believes that he â€Å"accumulated close to hundreds if not thousands of concussions throughout his football playing career, some documented, some not† (Smith). Some problems that occur from concussions could end up being more life threatening then Visgers symptoms. â€Å"The suicides of former Chicago Bears Defensive end Dave Duerson and Owen Thomas, a University of Pennsylvania defensive end, have shown that the severity of concussions can psychologically destroy a person† (Compton). These symptoms that Visger, Duerson, and Thomas have or had experienced have happened to many other retired football players as well, which shows that this is very common among concussion recipients. Visger was also one of more than four thousand former NFL players who filed a seven hundred and seventy five million dollar lawsuit against the NFL for lack of information of concussions, and neglecting of the severity of concussions (Farrar). This settlement was reached and the money was granted to the players, but the fact is that these men must live with consequences that they received when they played the game of football. Not only is everyday life a struggle for these gentlemen, but the risks that they took can sometimes lead to their untimely death. Although most athletes are aware of concussions, not everyone is aware of the long lasting effects of them which are up to coaches and staff to explain. â€Å"The obligation of an employer to provide its employees with a safe workplace free from recognized hazards is well established. In the absence of specific standards for an industry, an employer is required under OSHAs general duty clause to provide its employees with a workplace free from recognized hazards which cause or are likely to cause death or serious physical harm†(Holmquist). In this case the employee is the athlete and the employers would be the football team’s staff and coaches. It is up to them to explain the long term consequences to these players, and enforce the safety protocol that must happen if they ever obtain a concussion. By doing this, the player is more informed of the risks of injury and the steps they have to take to either change the way they play, or simply don’t play the game at all. Equipment is also a major factor in dealing with concussions. The regulation helmet used in the NFL has gone through rigorous changes to keep concussions to a limit, but there is only so much you can do to prevent a concussion. â€Å"What helmets do not do well is significantly slow down the contents of the skull when the head is struck and moved suddenly† (Compton). The design of a helmet is made to prevent skull fractures not to prevent the fast impact of a hit to the head. Although technology will probably continue to improve the quality of helmets in football, the brute force of a hit to the head can probably never be covered up by any sort of helmet. The discussion of banning football due to the high risk of concussions has been a topic of debate also. Although it is ultimately the decision of someone to do what they want, they might not know the full consequences of what they’re getting into. It is important to educate athletes on the full on risks of concussions and how serious they really. If the overall topic of concussions can be explained to athletes, then football can be that much safer.

Odyssey bibliography Essay Example for Free

Odyssey bibliography Essay Odysseus was one of the famous Greek poets. He was Laertes and Anticlea’s son and was married to Penelope (a woman thought to be inordinately faithful) and was a father to Telemachus. Odysseus was the king of Ithaca, a favorite place in Athens, and was one of the few Greeks that returned home safely from troy and the Trojan War though it took a long time before they returned. He is believed to have written some poems in the end of eighth century BC. Odysseus was among the leader of Achaeans who have contributed to most part of Greek literature. In his different walks of life, he is view as a hero and in other side as a failure, in the focus of his bibliography as written by homer, his participation in Trojan war and his tricks that made him stand unique paving way for his success in his missions. He was a family man who focused on achievements and did not believe on failures, he believed in as supernatural power of gods that were making him strong in believe that they were in his support in the victory. The essay focuses on the life line of Odysseus, participation and contributions as well as his character traits as narrated by different poets and other literatures. Joachim, 2005) Odysseus early life When Odysseus was a young boy, he exhibited on his talent; his main fond was archery and was excelling on it. Young Odysseus was fond of hunting with his dog, Argos, he could not stop doing what he liked no matter the challenges example is when he was gored by a bear and left a scar on his thigh. The scar was a lifetime mark that would help his old nurse Eurycleia when he returned from his wonderings. He was know to mind less about the appearance, some people went far as saying that he had bandy-legged, but when he began talking, he was unstoppable. His cleverness brought him closer to goddess Athena; he became his protector at troy and later on the sea. Odysseus became one of the original suitors of Helen of troy. He came woo her in Sparta for it was expected of him though his main interest was in her cousin Penelope. To avoid dispute among the suitors that were interested in Helen, Odysseus suggested to her father to help him win Penelope, Helen’s cousin, her father feared the preference of one suitor. Odysseus suggested to Tyndareus to exact an oath to all suitors that they will defend the favored suitor and protect his marriage against anything wrong that may be done to him. Helen married Menelaus of the cursed horse. Icarius of Lacedaemon, the Penelope’s father, offered his daughter to Odysseus, the man who defeated him in foot race. Penelope’s father, the old king of Lacedaemon was trying to make the newly wedded couples to stay in Lacedaemon but Odysseus refused and set for Ithaca. After much insisting, Odysseus had to bade to his wife either to move with him or return to her father. Penelope did not respond but instead she covered her face which was a clear indication that she wished to move with her husband, this was a clear prove of her cleverness and wily as her husband. Martin, 2007) On arrival in Ithaca, Odysseus had to build a new palace for him and his new bride. The couple got a son, it did not take long before the news came to them that Paris had eloped Helen. After the Paris abducted Helen, her father invoked an oath of Tyndareus, Odysseus refused to make good out of it. He pretended to be mad just to proof his sanity after he avoided hitting a child. (Kayakas, 1988) Odysseus character Odysseus is described as a hero due to his cunning intelligence. The use of deceptive speech describes him well and is well manifested in his character traits as a peer of Zeus in counsel. His disguising character takes form altering his appearance and verbal, this may be seen in the event when he blinded Cyclops when he told him that his name was nobody the managed to escape after blinding Polyphemus. When polyphemuss was screaming and Cyclops asks him why he was doing that, he said that nobody is hurting him, every one (Cyclopes) thought no one was hurting him and may be he was suffering in the hands of immortal Zeus. According to Odyssey of Homer, it is evident that Odysseus was arrogant and proud, as he sailed away from the Cyclops’s island, he boasted as he shouted his name saying that no one defeat him ‘great Odysseus’. The Cyclopes were not happy with him and the threw bitter words to him as he tells his father that Odysseus blinded him which enraged Poseidon and caused the god to curse Odysseus home coming and delayed for a long time. (Rodney, 2006) Odysseus events Odysseus events are narrated and given from the middle of the plot; this has been done through flashbacks and story telling. The later authors have done this through imitation, examples of these authors are Virgil and Aeneid, the modern poets were not left behind such as Pope Alexander in the mock epic, mock-heroic also commonly known as ‘the rape of the rock’. At first we find Odysseus trying to assert control on the household and later at Athena’s advice while in search for news concerning his lost fathers. Odysseus was a captive for a long time of the beautiful nymph Calypso who he had spent with his seven years of his lost ten years. (Karykas, 2003) After his release by intercession of his patroness Athena, he leaves and his raft was destroyed by his known enemy Poseidon who was much annoyed because Odysseus had blinded Polyphemus his son. Odysseus washed up Scherie, which was the home to Phaeacians and is assisted by Nausicaa who treats him with great hospitability. When he returned he narrated about his adventures since he left troy to Phaeacians and the leader of his adventures satisfying their curiosity. This flash back extends back to where Odysseus stands and his tale told. Odysseus got a ship through loan from shipbuilding Phaeacians to return to Ithaca, he is assisted by swine hearder Emaeus to meet Telemachus, in the process he got back his house hold and managed to kill the suitors and then he was able to reunite with his faithful Penelope, his wife. Odyssey is divided into 24 books in all modern editions and translations. The message contained there in is convincing but not original, Alexandrian editors developed this by 3rd century BC. Through the period, the books have been given different titles. Barry, 2006) Odysseus and culture Different cultures have risen in concern of Odysseus; some of the cultures describe him as a hero and others as a scoundrel. Odysseus was ruling the Cephallenians, this were the people who were dwelling on the islands that was on the northwest coast of Greece. His palace was on the rocky island of Ithaca, compared to other Greek princes that were fighting at troy; he was not as wealthy as them though he was living a com fortable life. (Malcom, 2000) Trojan War According to myths of Greek, the Trojan war was war that was Achaeans against the city of troy after Helen was stolen by troy of Paris from her husband Menelaus who was the King of Sparta. Trojan War was among the most important events that happened in the Greek mythology which was narrated by many and different works of Greek literature that included the Iliad, Homer and the Odyssey. Trojan War believed to have originated from a quarrel between the Aphrodite, Athena and Hera goddesses after the Eris, goddess of strife and discord offered them a golden apple, and this is also referred to as apple of discord that was marked to be the fairest. When the goddess went to Paris and judged that Aphrodite as the fairest and should be the one to receive the apple. In exchange apple, Aphrodite made Helen to be the most beautiful woman and fallen in love with Paris who would take her to troy. Achaeans desecrated temples and they slaughtered Trojans, they got the wrath of gods’, only few of the Achaeans returned home safely while others found colonies in different places in the shores. The Romans were led by one of the surviving Trojan to their origin, Italy. Wood, 1998) Odyssey describes the Odysseus journey home. He was among the Achaean leaders. Other parts of the war have been narrated by cycle of epic poems, though has survived in fragments. The war episodes were important for they provided materials for the Greek literature and for the Roman poets like Ovid and Virgil. Odysseus had fought for more than ten years in the Trojan War before he came up with the idea of wooden horse. This was probable the reason why wily or c rafty was attached to his name. Odysseus incurred another decade on the way before arriving home after blinding Poseidon’s Cyclops son that brought a wrath to him. This delayed him to arrive in time so this covers him and his crews return way to Ithaca from Trojan War. (Jonathan, 2004) Dilemma of Odyssey Though the ancient Greeks great epic poems were attributed to the confusing figure of homer, not much is known about him and the contribution of odyssey beyond his name being attached to the poems. There is some doubt whether homer was the real author of Odyssey and Iliad. Homer played a primary role in shaping the master work, much is said about the probability of his contribution, if he is the real author, he must be a great literature artist. Odysseys are the most influential poems; Odysseus epics are used in the Greek education and culture throughout the age and have formed a backbone of human education from the time of Roman Empire and spread of Christianity. The translation of odysseys have brought an impact on Renaissance culture of Italy, this have helped in forming European tradition. The poems are of some use in determining when Homer and Odysseus lived, this gives a clue that make it easy to assume that they lived around 8th century, The Odyssey may belong closer to this period. The dilemma behind this is that odysseys were oral; this was to be passed through generations till the time of writing. Odysseus own means of poems are through singing. Another dilemma is what would affect the accuracy of when epics came to written form. (Michael, 1976) Conclusion Odysseus was a man of different character; no one could really describe his character confidently. He was a man of high moral and he used his cleverness to avoid what he wanted and avoid what seemed not good for him. During the Trojan War, Odysseus was a man his group could not do without; his mode of decision making was quite unique and stood as a pillar for the victory. The life of Odysseus was a life well lived, he left a legend behind that would become a literature to learned in European education, this was an epic that taught much of the Greeks’ empire and history.

Determinants of Debt Maturity Structures in Pakistan

Determinants of Debt Maturity Structures in Pakistan CHAPTER 1 Rapid changes in financial service industries make it essential to determine the profitability of financial institution. Banks plays a key role in financial market of a country and for this its very important to evaluate that bank operate in efficient manner also what are the factors which affect the profitability of banks. A bank generates profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. Historically, profitability from lending activities has been dependent on the needs and strengths of customers. In modern era, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also included service charges on an array of deposit activities and other services (international banking, foreign exchange, insurance, investments, wire transfers, etc.). Lending activities provide the huge size of income to commercial banks. In the past 10 years banks have taken many measures to ensure that bank remain profitable while responding to increasingly changing market conditions. Financial sector of Pakistan structured on Scheduled and Unscheduled Banks. Scheduled Banks are regulated by the State Bank of Pakistans Regulations, through different wings, and are subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. The financial division analysts were projected higher profitability in 2008. That projection made possible because State Bank of Pakistan has raised its discount rate in which the banks can invest to earn a good return. The rising lending rates contributed considerably to ensuring an increased profitability acknowledged by State bank of Pakistan. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of management and its policies, efficiency of management in generating revenues and controlling costs, bank capitalization and location. Exogenous factors are outside management control, especially macro economic indices such as Interest rates, Exchange rates, Inflation, and other regulatory and market constraints. The banking sector has been a source of stability for this country, because as you have seen in many countries, the banking sector has weakened and outright nationalization has taken place in some countries. However, the reforms that have taken place in Pakistan banking sector over the past 8 to 10 years have given stability and strength to this sector. There are some ratios, by which can measure the strength of a banking sector, and the most important amongst those ratios is Capital Adequacy; our countrys average capital adequacy 8 percent some banks have less or some banks have more. Macro stability taken some time to trickle down was not something that happens over a month or two, because macro stability causes improvement in the confidence and that improvement caused investment decisions to become positive. As Pakistan banking sector presented stable condition. The country was not very export-dependent either, which is why the global decrease in trade has not had a big impact on Pakistan. Pakistan has the potential to achieve self-sufficiency over a period of time and create a major surplus for agriculture. Banks in Pakistan over the last eight to ten years have been more selective in the client base, apart from the consumer side, because the consumer loans are only 14 percent of the total loans its much lower than other countries. Country had faced some problems in the consumer loans, especially those banks that had become too aggressive in this sector, but the rest whether its corporate or agriculture have remained stable. Growth of Banking Sector: Profitability of the banking sector has been breaking its own record year after year during this ongoing decade. The commercial banking sector in Pakistan regulated by the state bank of Pakistan. SBP introduced several structural changes. Beside higher standards of corporate governance at management and board level, the banks are adhering to SBP prudential regulations, consistent with BIS standards. 36 Commercial Banks (26 local banks and 10 foreign banks) of which 22 were listed on stock exchange. Many merger/acquisition took place. Asset of banking sector registered a increase to reach at Rs 3.7 trillion (2005) with annual growth rate of 15.2% that outpaced economic growth (2005-06) 85 % of banking sector are in private hands. 1.3 Earning And Profitability Strong earnings and profitability profile of banks reflects the ability to support present and future operations. More specifically, this determined the capacity to absorb losses, finance its expansion programs, pay dividend to its shareholders and build up adequate level of capital. There were many different indicators used to serve the purpose, the best and most widely used indicator return on assets (ROA). Earning demanded most visible in case of foreign banks in 1998. The stress on earnings and profitability was expected although the steps taken by the SBP to improve liquidity. Not only liquid assets to total assets ratio turn down sharply, earning assets to total assets also dropped. T-Bill portfolio of banks declined considerably, as that were less compensated. Banks reduced return on deposits to sustain their spread. The financial institutes were not able to contain the decline in ROA due to declining stock and remuneration of their earning assets. CHAPTER 2 LITERATURE REVIEW Research on the determinants of bank profitability has focused on the returns of bank assets and equity, and net interest rate margins. It has traditionally explored the impact on bank performance of bank-specific factors, such as risk, market power, and regulatory costs. Many researchers have focused on the impact of macroeconomic factors on bank performance and profitability. According to Flennery (2000) tested the hypothesis that market rate fluctuations adversely affect commercial bank profits. The finding have responded of revenue and cost of fund to market rate changes then determine whether regulators should take pains to stabilize market conditions. Market rate levels emerge as a prominent influence on intermediary costs and revenues, but the effects of market rate changes effectively cancel one another for most large banks. The research found significant sensitivity to interest rate and it was unstable over the time. By Brick (1994) estimated of market risk, interest rate risk, and foreign exchange risk continues to be unstable. The result of risk differed by bank type and period. As interest rate risk declines, foreign exchange increases; the result suggested that the market continues to reflect changes in the economic and regulatory situation of commercial banks in the pricing of bank stocks. The adverse impact of Interest Rate fluctuations on the profitability of Commercial Banks can be hedge with sound application of modern interest rate risk management theories and tools. Used accounting decompositions, as well as panel regressions, Al-Haschimi (2007) studied the determinants of bank net interest rate margins in 10 Sub Saharan African countries. Author found that credit risk and operating inefficiencies explain most of the variation in net interest margins across the region. Macroeconomic risk has only limited effects on net interest margins in the study. DemirgÃÆ' ¼ÃƒÆ' §-Kunt and Huizinga (1999) used bank level data for 80 countries for the periods 1988-95; analyze how bank characteristics and the overall banking environment affect both interest rate margins and bank returns. In considering both measures, this study provides a decomposition of the income effects of a number of determinants that affect depositor and borrower behavior, as opposed to that of shareholders. Results suggested that macroeconomic and regulatory conditions have a pronounced impact on margins and profitability. Lower market concentration ratios lead to lower margins or profits, while the effect of foreign ownership varies between industrialized and developing countries. Foreign banks have higher margins and profits compared to domestic banks in developing countries, while the opposite holds in developed countries. Hualan Cia and Weing (1992) studied on the effect of interest rate change on stock return and bank profitability, investigated the sensitivity of Canadian banks stock return and the profitability to change in interest rate. Used the data of Canadian banks on both the actual and unexpected change of different time series of interest rate indices, the short, intermediate and long term interest rate have significant negative correlation with bank stock return and profitability. The analysis showed through regression analysis by calculated the ratios of financial statements of banks. This measured the Canadian bank profitability against interest rate changes found that the net interest income and net income were not significantly related to change of interest rate. Flannery (1981) the study examined the relation between the interest rate sensitivity of common stock returns and the maturity composition of the firms nominal contracts. Used a sample of actively traded commercial banks and stock savings and loan associations, common stock returns are found to be correlated with interest rate changes. The co-movement of stock returns and interest rate changes positively related to the size of the maturity difference between the firms nominal assets and liabilities. Facts supported the hypothesis that the effect of nominal interest rate changes on common stock prices related to the maturity composition of a firms net nominal asset holding. For commercial bank and SL stocks, changes in interest rates were found to be significantly related to stock price movements. Also cross-sectional variation in the interest rate sensitivity measure was significantly related to the maturity mismatch of the bank assets and liabilities. Dependable with the nominal contracting hypothesis, the maturity composition of nominal contracts was found to be a significant factor affecting common stock returns. Coyne (1973) Commercial Bank Profitability by Function, The study was concerned with the cost, price and profit by function. It estimated the profit for real estate, installment, commercial and agricultural loans, and investments for banks stratified by size of deposit and the method, that was used to make that determination; the degree to which the average price (interest rate) by function known to the bank and, expressed by a sample period, whether it was equal to or greater than the cost of funds by function; and the degree to which the bank was able to determine its profit by function. The results of the surveyed were representative of the aggregate commercial banking community, the study concluded by the cost of funds estimates to average balance sheet for the Representative Bank of America (RBA).Raw data were obtained from the Federal Reserve Bank of Clevelands functional cost analysis of forty-one banks. Surveyed to the chief executive officer of 510 commercial banks provides insight into the manner in which commercial banks utilize. The author designed to provide a method of cost and profit calculation to the numerous small and medium-sized banks who indicated in response to the authors survey that the author knew little or nothing about the costs by function. The results of the investigation in general and the profitability of RBA in particular representative of the entire banking community, this study was provide help to individual banks as well as policy-making levels of state and national government where questions concerning matters such as usury laws and price (interest rate) controls appear to be taking a disproportionately large amount of time and effort to resolve. Goddard, Molyneux and Wilson (2004) determined the dynamic panel and cross-sectional regressions used to estimate growth and profit equations for a sample of commercial, savings, and co-operative banks from five major European Union countries during the mid-1990s. Methodologically unified the growth and profit strands in the previous empirical literature. Profit was an important prerequisite for future growth. High capital assets ratio tendency grow slowly in banking sector, and growth was connected to macroeconomic conditions. There were few systematic influences on bank growth. The resolution of profit appears higher for savings and co-operative banks than for commercial banks has attempted to unify the growth and profit strands in the literature by examining the performance of European banks during the 1990s. It reported univariate, bivariate, and multivariate versions of a two-equation model, which attempts to capture two-way causality between growth and profit while controlling for a range of other determinants of bank performance. The growth regressions suggested as banks became larger in relative terms, their growth performance tended to improve further. This pattern was strongest for commercial banks. Banks that sustained high capital-assets and liquidity ratios records low profitability. There was some evidence of a positive association between concentration and profitability, but little evidence of a link between bank-level x-inefficiency and profitability. While such patterns continue, concentration in European banking exhibited a natural tendency to increase. There was proof of positive perseverance of growth, although this tends to decline when additional control variables were included in the bivariate and multivariate growth models. The estimated coefficients on the covered profit term in the growth equations lend strong support to the notion that profit is an important sign to future growth. In the profit regressions, there was some variation in the estimated short-run between ownership types and countries. This reflected the fact that savings and co-operative banks are subject to various business and geographical restrictions that smother competition. The study favored th e SCP hypothesis of a positive association between concentration and profitability, but little apparent relationship between bank level inefficiency and profitability. In Latin America, Gelos (2006) studied the determinants of bank interest margins using bank and country level data. Author found that spreads are large because of relatively high interest rates because of macroeconomic risk, including from inflation, less efficient banks, and higher reserve requirements. In a study of United States banks for the period 1989-93, Angbazo (1997) found that net interest margins reflect primarily credit. In addition, there was evidence that net interest margins are positively related to core capital, non-interest bearing reserves, and management quality, but negatively related to liquidity risk. Ho and Saunders (1981) applied the model of to analyze the determinants of interest margins in six countries of the European Union and the US during the period 1988-95. Authors found that macroeconomic volatility and regulations have a significant impact on bank interest rate margins. The results also suggested an important trade-off between ensuring bank solvency, defined by high capital to asset ratios, and lowering the cost of financial services to consumers, as measured by low interest rate margins. Athanasoglou, Delis and Staikouras (2006) applied a dynamic panel data model to study the performance of Greek banks over the period 1985-2001, and find some profit persistence, a result that signal that the market structure not perfectly competitive. The results also showed that the profitability of Greek banks shaped by bank-specific factors and macroeconomic control variables, which were not under the direct control of bank management and industry formation, did not appear to significantly affect profitability. Athanasoglou (2008) studied the profitability behavior of the south eastern European banking industry over the period 1998-2002. The empirical result suggested that the enhancement of bank profitability in those countries requires new standards in risk management and operating efficiency, which, according to the evidence presented in the paper, crucially affect profits. A key result that effect market concentration was positive, while the picture regarding macroeconomic variables was mixed. A number of studies have emphasized the relation between macroeconomic variables and bank risk. Saunders and Allen (2004) surveyed on pro-cyclicality in operational, credit, and market risk exposures. Such cyclical effects mainly results from systematic risk originate from common macroeconomic influences or from interdependencies across firms as financial markets and institutions consolidate internationally. It ultimately exacerbates business cycle fluctuations due to adverse effects on bank lending capacity. Using equity returns data over the period 1973-2003, Allen and Bali (2004) examined the disastrous risk of financial institutions. Results suggested evidence of pro-cyclicality in both tragic and operational risk measurements, implying that macroeconomic, systematic, and environmental factors play a considerable role in determining the risk and returns of financial institutions. Pi and Timme (1993) investigated the relationship of concentration of decision management and control in one person on the cost efficiency level of the bank and return on assets. On the basis of the study found that the banks whose Chairman and CEO be same person had significantly less efficiency than those banks that possessed not similar governance structure and show that performance was affected by top management structure. Isik and Hassan (2003) estimated cost, allocate, technical, pure technical and scale efficiency of Turkish banking industry from 1988 to 1996. This study considered capital, loan able funds as bank short-term loans, long-term loans, risk adjustment off balance sheet items and other earning assets as output of bank. Thistle, McLeod and Conrad (1989) have found that (a) balance sheet composition depends on both the level and change in interest rates , (b) banks response to changes in interest rates in different, depending on whether rates are rising or falling. Authors determined the relation between banks portfolio of assets and liabilities and interest rate was stable. Several possible caused of instability. The econometric techniques employed allow for continuous change in the structure of the empirical model. The study found that the portfolio-interest rate relationship depends on the level of interest rates and exogenous assets, as well as their rate and direction of change Samy Ben Naceur (2005) investigated the impact of banks characteristics, financial structure and macroeconomic indicators on banks net interest margins and profitability in the Tunisian banking industry for the 1980-2000 periods. The study found individual bank characteristics explained a substantial part of the within-country variation in bank interest margins and profitability. High interest margin and profitability tend to be associated with banks that hold a relatively high amount of capital, and with large overheads. The study found that the inflation had a positive force for net interest margin; while economic growth has no incidence. Another factor was financial structure and its impact on banks interest margin and profitability; found that concentration be less beneficial to the Tunisian commercial banks than competition whereas for stock market development had a positive effect on bank profitability. This reflected the corresponding between bank and stock market growth. The study found that the disintermediation of the Tunisian financial system was favorable to the banking sector profitability. Some authors examined on banking of south European region, the determinants of bank interest margins adopt two alternative modeling frameworks used dealership approach and a micro-model of the banking-firm approach, study found bank as a dynamic dealer, setting interest rates on loans and deposits to balance the asymmetric arrival of loan demands and deposit supplies by Staikouras. The bank interest margins were shown to be fees charged by banks for the provision of liquidity. The alternative approach was the micro-model of the banking firm, the study found the banking firm in a static way, setting where demands and supplies of deposits and loans simultaneously clear both markets. Choi, Elyasiani and Kopecky (1992) estimated a multi-index model that considered market risk, interest sensitivity, and exchange rate risk of commercial bank stock returns. Dummy models were used to separate the period of pre- and post-October 1979 and to split the results attributable to money center banks from other banks. A significant exchange rate effect occurs for money center banks after October 1979, while interest sensitivity was stronger before October 1979. The exchange rate effect was attributing to raised hedge foreign loan exposure of money center banks. The bank profitability typically measured by the return on assets (ROA) and/or the return on equity, usually expressed as a function of internal and external determinants. Internal determinant factors that were mainly influenced by a banks management decisions and policy objectives. Such profitability determinants are the level of liquidity, provisioning policy, capital adequacy, expenses management, and bank size. On the other hand, the external determinants, both industry and macroeconomic related, also known variables that reflect the economic and legal environments where the financial institution operates. By Bourke (1989) determined; Liquidity risk, arising from the possible inability of a bank to accommodate. Decreased in liabilities or to fund increases on the assets side of the balance sheet, considered an important determinant of bank profitability. The loans market, especially credit to households and firms, risky and has a greater expected return than other bank assets, such as government securities. That expected a positive relationship between liquidity and profitability. Duca and McLaughlin (1990) studied that variations in bank profitability were largely attributable to variations in credit risk, since increased exposure to credit risk normally associated with decreased firm profitability. Miller and Noulas (1997) suggested that the more financial institutions are exposed to high risk loans, the higher the accumulation of unpaid loans and the lower the profitability. Even though leverage (capitalization) has been demonstrated to be important in explaining the performance of financial institutions, its impact on bank profitability was ambiguous. As lower capital ratios suggest a relatively risky position, one might expect a negative coefficient on this variable. Molyneux and Thornton (1992) observed a positive relationship, suggesting that high profits earned by firms be appropriated in the form of higher payroll expenditures paid to more productive human capital. It should be appealing to identify the dominant effect, in a developing banking environment like Malaysia. Authors used Bank size to capture potential economies or diseconomies of scale in the banking sector. The variable controls for cost differences and product and risk diversification according to the size of the financial institution. The first factor could lead to a positive relationship between size and bank profitability were significant economies of scale, while the second factor negative one was increased diversification leads to lower credit risk and lower returns. Berger, Hanweck, Humphery (1987) discussed that marginal cost savings can be achieved by increasing the size of the banking firm, especially as markets develop. Eichengreen and Gibson (2001) suggested that the effect of a growing banks size on profitability may be positive up to a certain limit. Beyond the point, the effect of size was negative due to bureaucratic and other reasons. Bank profitability be sensitive to macroeconomic conditions despite the trend in the industry towards greater geographic diversification and larger use of financial engineering techniques to manage risk associated with business cycle forecasting. Generally, higher economic growth encourages bank to lend more and permits them to charge higher margins, as well as improving the quality of their assets. 2.1 The Determinants of Bank Performance: Studies on the determinants of banks interest margin and profitability have focused on single country sides and a panel of countries. 2.1a Single country studies As most of the studies on bank performance are conducted in the US and emerging markets. Neeley and Wheelock (1997) explored the profitability of a sample of insured commercial banks in the US for the 1980-1995 periods. Authors found that bank performance positively related to the annual percentage changes in the states per capita income. The main Studies on the determinants of banks performance in emerging countries were carried out in Colombia Barajas et al. (1999) document significant effects of financial liberalization on banks interest margins for the Colombian case. Although the overall spread has not declined after financial reform, the relevance of the different factors behind the bank spreads were affected by such measures. Another change linked with the liberalization process was the increase of the coefficient of loan quality after the liberalization. Afanasieff, Lhacer and Nakane (2002) make used of panel data techniques to uncover the main determinants of the bank interest spreads in Brazil. Ben Naceur and Goaied (2001) investigated the determinants of the Tunisian banks performances during the period 1980-1995. The research indicated that the best performing banks were those who had struggled to improve labor and capital productivity, maintained a high level of deposit accounts relative to their assets and had been able to reinforce their equity. Guru, Staunton and Balashanmugam (2002) attempted to identify the determinants of successful deposit banks in order to provide practical guide for improved profitability performance of these institutions. The study was based on a sample of 17 Malaysian commercial banks over the 1986-1995. The profitability determinants were divided in two main categories, internal determinants (liquidity, capital adequacy and expenses management) and the external determinants (ownership, firm size and external economic conditions). The finding of that study revealed that efficient expenses management was one of the most significant in explaining high bank profitability. Among the macro indicators, high interest ratio was associated with low bank profitability and inflation was found to have a positive effect on bank performance. 2.1b Panel country studies The panel country studies were focused on European companies and developed and developing countries. Molyneux and Thornton (1992) were the first to explore thoroughly the determinants of bank profitability on a set of countries. Authors used sample of 18 European countries during the 1986-1989. The finding represented a significant positive association between the return on equity and the level of interest rates in each country, bank concentration, and government ownership. Abreu and Mendes (2002) investigated the determinants of banks interest margins and profitability for some European countries in the last decade. The authors reported that well capitalized banks face lower expected bankruptcy costs and advantages translate into better profitability. Although with a negative sign in all regressions, the unemployment rate was relevant in explaining bank profitability. Bashir (2000) examined the determinants of Islamic banks performance across eight Middle Eastern countries for 1993-1998. A number of internal and external factors were used to predict profitability and efficiencies. Controlling for macroeconomic environment, financial market situation and taxation, the results showed that higher leverage and large loans to asset ratios, lead to higher profitability. The author reported in his study that foreign-owned banks are more profitable that the domestic. The result also found the evidence that taxation impacts negatively bank profitability. Final result of study was that macroeconomic setting and stock market development have a positive impact on profitability. DemerguÃÆ' §-Kunt and Huizingha (1999) examined the determinants of bank interest margins and profitability using a bank level data for 80 countries in the 1988- 1995 period. The set of variables included several factors accounting for bank characteristics, macroeconomic conditions, taxation, regulations, financial structure, and legal indicators. The study reported that a larger ratio of bank assets to GDP and a lower market concentration ratio lead to lower margins and profits. Foreign banks have higher margins and profits than domestic banks on developing countries, while the opposite prevail in developed countries. DemerguÃÆ' §-Kunt and Huizingha (2001) presented evidence on the impact of financial development and structure on bank profitability using bank level data for a large number of developed and developing countries over the 1990-1997 period. The study found that financial development has a very important impact on bank performance. It reported that higher bank development was related to lower bank performance. Stock market development on the other hand, leads to increased profits and margins for banks especially at lower levels of financial development, indicating complementarities between bank and stock market. CHAPTER 3 THEORETICAL FRAMEWORK AND HYPOTHESIS The interest rate assummed to be one of the most important factors that affect commercial banks profitability. The issue which deals in the study was the affect of market interest rate fluactuation has adversly related to commercial bank profitability. This thesis study bring opportunity to established a relationship between fluctuations in interest rates and the performance of commercial banks in Pakistan during the period of 2004- 2008. The main purpose of this study was to determine the implication of fluctuations in market interest rates on the profitability of commercial banks in Pakistan. This study provide Major causes of interest rate fluctuations The extent to which commercial banks are set to manage interest rate related risks. Major causes of Interest Rate Fluctuation were unstable government Policies, Unstable Economic Environment, unavailability of long-term funds, Inflation. The factors that affect the commercial bank profitability were significant mismatch in the maturity profiles of Assets and Liabilities, Frequent Interest Rate Fluctuations, under capitalization of banks, Poor Collateral of credits. Pakistans financial sector included nationalized, foreign, and private banks; and Non-banking Financial Institutions (NBFIs) which include Development Finance Institutions (DFIs), Investment Banks, leasing companies, modarabas, and housing finance companies. Scheduled Banks know as also commercial bank regulated by the State Bank of Pakistan regulated through different wings, and subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of man Determinants of Debt Maturity Structures in Pakistan Determinants of Debt Maturity Structures in Pakistan CHAPTER 1 Rapid changes in financial service industries make it essential to determine the profitability of financial institution. Banks plays a key role in financial market of a country and for this its very important to evaluate that bank operate in efficient manner also what are the factors which affect the profitability of banks. A bank generates profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. Historically, profitability from lending activities has been dependent on the needs and strengths of customers. In modern era, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also included service charges on an array of deposit activities and other services (international banking, foreign exchange, insurance, investments, wire transfers, etc.). Lending activities provide the huge size of income to commercial banks. In the past 10 years banks have taken many measures to ensure that bank remain profitable while responding to increasingly changing market conditions. Financial sector of Pakistan structured on Scheduled and Unscheduled Banks. Scheduled Banks are regulated by the State Bank of Pakistans Regulations, through different wings, and are subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. The financial division analysts were projected higher profitability in 2008. That projection made possible because State Bank of Pakistan has raised its discount rate in which the banks can invest to earn a good return. The rising lending rates contributed considerably to ensuring an increased profitability acknowledged by State bank of Pakistan. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of management and its policies, efficiency of management in generating revenues and controlling costs, bank capitalization and location. Exogenous factors are outside management control, especially macro economic indices such as Interest rates, Exchange rates, Inflation, and other regulatory and market constraints. The banking sector has been a source of stability for this country, because as you have seen in many countries, the banking sector has weakened and outright nationalization has taken place in some countries. However, the reforms that have taken place in Pakistan banking sector over the past 8 to 10 years have given stability and strength to this sector. There are some ratios, by which can measure the strength of a banking sector, and the most important amongst those ratios is Capital Adequacy; our countrys average capital adequacy 8 percent some banks have less or some banks have more. Macro stability taken some time to trickle down was not something that happens over a month or two, because macro stability causes improvement in the confidence and that improvement caused investment decisions to become positive. As Pakistan banking sector presented stable condition. The country was not very export-dependent either, which is why the global decrease in trade has not had a big impact on Pakistan. Pakistan has the potential to achieve self-sufficiency over a period of time and create a major surplus for agriculture. Banks in Pakistan over the last eight to ten years have been more selective in the client base, apart from the consumer side, because the consumer loans are only 14 percent of the total loans its much lower than other countries. Country had faced some problems in the consumer loans, especially those banks that had become too aggressive in this sector, but the rest whether its corporate or agriculture have remained stable. Growth of Banking Sector: Profitability of the banking sector has been breaking its own record year after year during this ongoing decade. The commercial banking sector in Pakistan regulated by the state bank of Pakistan. SBP introduced several structural changes. Beside higher standards of corporate governance at management and board level, the banks are adhering to SBP prudential regulations, consistent with BIS standards. 36 Commercial Banks (26 local banks and 10 foreign banks) of which 22 were listed on stock exchange. Many merger/acquisition took place. Asset of banking sector registered a increase to reach at Rs 3.7 trillion (2005) with annual growth rate of 15.2% that outpaced economic growth (2005-06) 85 % of banking sector are in private hands. 1.3 Earning And Profitability Strong earnings and profitability profile of banks reflects the ability to support present and future operations. More specifically, this determined the capacity to absorb losses, finance its expansion programs, pay dividend to its shareholders and build up adequate level of capital. There were many different indicators used to serve the purpose, the best and most widely used indicator return on assets (ROA). Earning demanded most visible in case of foreign banks in 1998. The stress on earnings and profitability was expected although the steps taken by the SBP to improve liquidity. Not only liquid assets to total assets ratio turn down sharply, earning assets to total assets also dropped. T-Bill portfolio of banks declined considerably, as that were less compensated. Banks reduced return on deposits to sustain their spread. The financial institutes were not able to contain the decline in ROA due to declining stock and remuneration of their earning assets. CHAPTER 2 LITERATURE REVIEW Research on the determinants of bank profitability has focused on the returns of bank assets and equity, and net interest rate margins. It has traditionally explored the impact on bank performance of bank-specific factors, such as risk, market power, and regulatory costs. Many researchers have focused on the impact of macroeconomic factors on bank performance and profitability. According to Flennery (2000) tested the hypothesis that market rate fluctuations adversely affect commercial bank profits. The finding have responded of revenue and cost of fund to market rate changes then determine whether regulators should take pains to stabilize market conditions. Market rate levels emerge as a prominent influence on intermediary costs and revenues, but the effects of market rate changes effectively cancel one another for most large banks. The research found significant sensitivity to interest rate and it was unstable over the time. By Brick (1994) estimated of market risk, interest rate risk, and foreign exchange risk continues to be unstable. The result of risk differed by bank type and period. As interest rate risk declines, foreign exchange increases; the result suggested that the market continues to reflect changes in the economic and regulatory situation of commercial banks in the pricing of bank stocks. The adverse impact of Interest Rate fluctuations on the profitability of Commercial Banks can be hedge with sound application of modern interest rate risk management theories and tools. Used accounting decompositions, as well as panel regressions, Al-Haschimi (2007) studied the determinants of bank net interest rate margins in 10 Sub Saharan African countries. Author found that credit risk and operating inefficiencies explain most of the variation in net interest margins across the region. Macroeconomic risk has only limited effects on net interest margins in the study. DemirgÃÆ' ¼ÃƒÆ' §-Kunt and Huizinga (1999) used bank level data for 80 countries for the periods 1988-95; analyze how bank characteristics and the overall banking environment affect both interest rate margins and bank returns. In considering both measures, this study provides a decomposition of the income effects of a number of determinants that affect depositor and borrower behavior, as opposed to that of shareholders. Results suggested that macroeconomic and regulatory conditions have a pronounced impact on margins and profitability. Lower market concentration ratios lead to lower margins or profits, while the effect of foreign ownership varies between industrialized and developing countries. Foreign banks have higher margins and profits compared to domestic banks in developing countries, while the opposite holds in developed countries. Hualan Cia and Weing (1992) studied on the effect of interest rate change on stock return and bank profitability, investigated the sensitivity of Canadian banks stock return and the profitability to change in interest rate. Used the data of Canadian banks on both the actual and unexpected change of different time series of interest rate indices, the short, intermediate and long term interest rate have significant negative correlation with bank stock return and profitability. The analysis showed through regression analysis by calculated the ratios of financial statements of banks. This measured the Canadian bank profitability against interest rate changes found that the net interest income and net income were not significantly related to change of interest rate. Flannery (1981) the study examined the relation between the interest rate sensitivity of common stock returns and the maturity composition of the firms nominal contracts. Used a sample of actively traded commercial banks and stock savings and loan associations, common stock returns are found to be correlated with interest rate changes. The co-movement of stock returns and interest rate changes positively related to the size of the maturity difference between the firms nominal assets and liabilities. Facts supported the hypothesis that the effect of nominal interest rate changes on common stock prices related to the maturity composition of a firms net nominal asset holding. For commercial bank and SL stocks, changes in interest rates were found to be significantly related to stock price movements. Also cross-sectional variation in the interest rate sensitivity measure was significantly related to the maturity mismatch of the bank assets and liabilities. Dependable with the nominal contracting hypothesis, the maturity composition of nominal contracts was found to be a significant factor affecting common stock returns. Coyne (1973) Commercial Bank Profitability by Function, The study was concerned with the cost, price and profit by function. It estimated the profit for real estate, installment, commercial and agricultural loans, and investments for banks stratified by size of deposit and the method, that was used to make that determination; the degree to which the average price (interest rate) by function known to the bank and, expressed by a sample period, whether it was equal to or greater than the cost of funds by function; and the degree to which the bank was able to determine its profit by function. The results of the surveyed were representative of the aggregate commercial banking community, the study concluded by the cost of funds estimates to average balance sheet for the Representative Bank of America (RBA).Raw data were obtained from the Federal Reserve Bank of Clevelands functional cost analysis of forty-one banks. Surveyed to the chief executive officer of 510 commercial banks provides insight into the manner in which commercial banks utilize. The author designed to provide a method of cost and profit calculation to the numerous small and medium-sized banks who indicated in response to the authors survey that the author knew little or nothing about the costs by function. The results of the investigation in general and the profitability of RBA in particular representative of the entire banking community, this study was provide help to individual banks as well as policy-making levels of state and national government where questions concerning matters such as usury laws and price (interest rate) controls appear to be taking a disproportionately large amount of time and effort to resolve. Goddard, Molyneux and Wilson (2004) determined the dynamic panel and cross-sectional regressions used to estimate growth and profit equations for a sample of commercial, savings, and co-operative banks from five major European Union countries during the mid-1990s. Methodologically unified the growth and profit strands in the previous empirical literature. Profit was an important prerequisite for future growth. High capital assets ratio tendency grow slowly in banking sector, and growth was connected to macroeconomic conditions. There were few systematic influences on bank growth. The resolution of profit appears higher for savings and co-operative banks than for commercial banks has attempted to unify the growth and profit strands in the literature by examining the performance of European banks during the 1990s. It reported univariate, bivariate, and multivariate versions of a two-equation model, which attempts to capture two-way causality between growth and profit while controlling for a range of other determinants of bank performance. The growth regressions suggested as banks became larger in relative terms, their growth performance tended to improve further. This pattern was strongest for commercial banks. Banks that sustained high capital-assets and liquidity ratios records low profitability. There was some evidence of a positive association between concentration and profitability, but little evidence of a link between bank-level x-inefficiency and profitability. While such patterns continue, concentration in European banking exhibited a natural tendency to increase. There was proof of positive perseverance of growth, although this tends to decline when additional control variables were included in the bivariate and multivariate growth models. The estimated coefficients on the covered profit term in the growth equations lend strong support to the notion that profit is an important sign to future growth. In the profit regressions, there was some variation in the estimated short-run between ownership types and countries. This reflected the fact that savings and co-operative banks are subject to various business and geographical restrictions that smother competition. The study favored th e SCP hypothesis of a positive association between concentration and profitability, but little apparent relationship between bank level inefficiency and profitability. In Latin America, Gelos (2006) studied the determinants of bank interest margins using bank and country level data. Author found that spreads are large because of relatively high interest rates because of macroeconomic risk, including from inflation, less efficient banks, and higher reserve requirements. In a study of United States banks for the period 1989-93, Angbazo (1997) found that net interest margins reflect primarily credit. In addition, there was evidence that net interest margins are positively related to core capital, non-interest bearing reserves, and management quality, but negatively related to liquidity risk. Ho and Saunders (1981) applied the model of to analyze the determinants of interest margins in six countries of the European Union and the US during the period 1988-95. Authors found that macroeconomic volatility and regulations have a significant impact on bank interest rate margins. The results also suggested an important trade-off between ensuring bank solvency, defined by high capital to asset ratios, and lowering the cost of financial services to consumers, as measured by low interest rate margins. Athanasoglou, Delis and Staikouras (2006) applied a dynamic panel data model to study the performance of Greek banks over the period 1985-2001, and find some profit persistence, a result that signal that the market structure not perfectly competitive. The results also showed that the profitability of Greek banks shaped by bank-specific factors and macroeconomic control variables, which were not under the direct control of bank management and industry formation, did not appear to significantly affect profitability. Athanasoglou (2008) studied the profitability behavior of the south eastern European banking industry over the period 1998-2002. The empirical result suggested that the enhancement of bank profitability in those countries requires new standards in risk management and operating efficiency, which, according to the evidence presented in the paper, crucially affect profits. A key result that effect market concentration was positive, while the picture regarding macroeconomic variables was mixed. A number of studies have emphasized the relation between macroeconomic variables and bank risk. Saunders and Allen (2004) surveyed on pro-cyclicality in operational, credit, and market risk exposures. Such cyclical effects mainly results from systematic risk originate from common macroeconomic influences or from interdependencies across firms as financial markets and institutions consolidate internationally. It ultimately exacerbates business cycle fluctuations due to adverse effects on bank lending capacity. Using equity returns data over the period 1973-2003, Allen and Bali (2004) examined the disastrous risk of financial institutions. Results suggested evidence of pro-cyclicality in both tragic and operational risk measurements, implying that macroeconomic, systematic, and environmental factors play a considerable role in determining the risk and returns of financial institutions. Pi and Timme (1993) investigated the relationship of concentration of decision management and control in one person on the cost efficiency level of the bank and return on assets. On the basis of the study found that the banks whose Chairman and CEO be same person had significantly less efficiency than those banks that possessed not similar governance structure and show that performance was affected by top management structure. Isik and Hassan (2003) estimated cost, allocate, technical, pure technical and scale efficiency of Turkish banking industry from 1988 to 1996. This study considered capital, loan able funds as bank short-term loans, long-term loans, risk adjustment off balance sheet items and other earning assets as output of bank. Thistle, McLeod and Conrad (1989) have found that (a) balance sheet composition depends on both the level and change in interest rates , (b) banks response to changes in interest rates in different, depending on whether rates are rising or falling. Authors determined the relation between banks portfolio of assets and liabilities and interest rate was stable. Several possible caused of instability. The econometric techniques employed allow for continuous change in the structure of the empirical model. The study found that the portfolio-interest rate relationship depends on the level of interest rates and exogenous assets, as well as their rate and direction of change Samy Ben Naceur (2005) investigated the impact of banks characteristics, financial structure and macroeconomic indicators on banks net interest margins and profitability in the Tunisian banking industry for the 1980-2000 periods. The study found individual bank characteristics explained a substantial part of the within-country variation in bank interest margins and profitability. High interest margin and profitability tend to be associated with banks that hold a relatively high amount of capital, and with large overheads. The study found that the inflation had a positive force for net interest margin; while economic growth has no incidence. Another factor was financial structure and its impact on banks interest margin and profitability; found that concentration be less beneficial to the Tunisian commercial banks than competition whereas for stock market development had a positive effect on bank profitability. This reflected the corresponding between bank and stock market growth. The study found that the disintermediation of the Tunisian financial system was favorable to the banking sector profitability. Some authors examined on banking of south European region, the determinants of bank interest margins adopt two alternative modeling frameworks used dealership approach and a micro-model of the banking-firm approach, study found bank as a dynamic dealer, setting interest rates on loans and deposits to balance the asymmetric arrival of loan demands and deposit supplies by Staikouras. The bank interest margins were shown to be fees charged by banks for the provision of liquidity. The alternative approach was the micro-model of the banking firm, the study found the banking firm in a static way, setting where demands and supplies of deposits and loans simultaneously clear both markets. Choi, Elyasiani and Kopecky (1992) estimated a multi-index model that considered market risk, interest sensitivity, and exchange rate risk of commercial bank stock returns. Dummy models were used to separate the period of pre- and post-October 1979 and to split the results attributable to money center banks from other banks. A significant exchange rate effect occurs for money center banks after October 1979, while interest sensitivity was stronger before October 1979. The exchange rate effect was attributing to raised hedge foreign loan exposure of money center banks. The bank profitability typically measured by the return on assets (ROA) and/or the return on equity, usually expressed as a function of internal and external determinants. Internal determinant factors that were mainly influenced by a banks management decisions and policy objectives. Such profitability determinants are the level of liquidity, provisioning policy, capital adequacy, expenses management, and bank size. On the other hand, the external determinants, both industry and macroeconomic related, also known variables that reflect the economic and legal environments where the financial institution operates. By Bourke (1989) determined; Liquidity risk, arising from the possible inability of a bank to accommodate. Decreased in liabilities or to fund increases on the assets side of the balance sheet, considered an important determinant of bank profitability. The loans market, especially credit to households and firms, risky and has a greater expected return than other bank assets, such as government securities. That expected a positive relationship between liquidity and profitability. Duca and McLaughlin (1990) studied that variations in bank profitability were largely attributable to variations in credit risk, since increased exposure to credit risk normally associated with decreased firm profitability. Miller and Noulas (1997) suggested that the more financial institutions are exposed to high risk loans, the higher the accumulation of unpaid loans and the lower the profitability. Even though leverage (capitalization) has been demonstrated to be important in explaining the performance of financial institutions, its impact on bank profitability was ambiguous. As lower capital ratios suggest a relatively risky position, one might expect a negative coefficient on this variable. Molyneux and Thornton (1992) observed a positive relationship, suggesting that high profits earned by firms be appropriated in the form of higher payroll expenditures paid to more productive human capital. It should be appealing to identify the dominant effect, in a developing banking environment like Malaysia. Authors used Bank size to capture potential economies or diseconomies of scale in the banking sector. The variable controls for cost differences and product and risk diversification according to the size of the financial institution. The first factor could lead to a positive relationship between size and bank profitability were significant economies of scale, while the second factor negative one was increased diversification leads to lower credit risk and lower returns. Berger, Hanweck, Humphery (1987) discussed that marginal cost savings can be achieved by increasing the size of the banking firm, especially as markets develop. Eichengreen and Gibson (2001) suggested that the effect of a growing banks size on profitability may be positive up to a certain limit. Beyond the point, the effect of size was negative due to bureaucratic and other reasons. Bank profitability be sensitive to macroeconomic conditions despite the trend in the industry towards greater geographic diversification and larger use of financial engineering techniques to manage risk associated with business cycle forecasting. Generally, higher economic growth encourages bank to lend more and permits them to charge higher margins, as well as improving the quality of their assets. 2.1 The Determinants of Bank Performance: Studies on the determinants of banks interest margin and profitability have focused on single country sides and a panel of countries. 2.1a Single country studies As most of the studies on bank performance are conducted in the US and emerging markets. Neeley and Wheelock (1997) explored the profitability of a sample of insured commercial banks in the US for the 1980-1995 periods. Authors found that bank performance positively related to the annual percentage changes in the states per capita income. The main Studies on the determinants of banks performance in emerging countries were carried out in Colombia Barajas et al. (1999) document significant effects of financial liberalization on banks interest margins for the Colombian case. Although the overall spread has not declined after financial reform, the relevance of the different factors behind the bank spreads were affected by such measures. Another change linked with the liberalization process was the increase of the coefficient of loan quality after the liberalization. Afanasieff, Lhacer and Nakane (2002) make used of panel data techniques to uncover the main determinants of the bank interest spreads in Brazil. Ben Naceur and Goaied (2001) investigated the determinants of the Tunisian banks performances during the period 1980-1995. The research indicated that the best performing banks were those who had struggled to improve labor and capital productivity, maintained a high level of deposit accounts relative to their assets and had been able to reinforce their equity. Guru, Staunton and Balashanmugam (2002) attempted to identify the determinants of successful deposit banks in order to provide practical guide for improved profitability performance of these institutions. The study was based on a sample of 17 Malaysian commercial banks over the 1986-1995. The profitability determinants were divided in two main categories, internal determinants (liquidity, capital adequacy and expenses management) and the external determinants (ownership, firm size and external economic conditions). The finding of that study revealed that efficient expenses management was one of the most significant in explaining high bank profitability. Among the macro indicators, high interest ratio was associated with low bank profitability and inflation was found to have a positive effect on bank performance. 2.1b Panel country studies The panel country studies were focused on European companies and developed and developing countries. Molyneux and Thornton (1992) were the first to explore thoroughly the determinants of bank profitability on a set of countries. Authors used sample of 18 European countries during the 1986-1989. The finding represented a significant positive association between the return on equity and the level of interest rates in each country, bank concentration, and government ownership. Abreu and Mendes (2002) investigated the determinants of banks interest margins and profitability for some European countries in the last decade. The authors reported that well capitalized banks face lower expected bankruptcy costs and advantages translate into better profitability. Although with a negative sign in all regressions, the unemployment rate was relevant in explaining bank profitability. Bashir (2000) examined the determinants of Islamic banks performance across eight Middle Eastern countries for 1993-1998. A number of internal and external factors were used to predict profitability and efficiencies. Controlling for macroeconomic environment, financial market situation and taxation, the results showed that higher leverage and large loans to asset ratios, lead to higher profitability. The author reported in his study that foreign-owned banks are more profitable that the domestic. The result also found the evidence that taxation impacts negatively bank profitability. Final result of study was that macroeconomic setting and stock market development have a positive impact on profitability. DemerguÃÆ' §-Kunt and Huizingha (1999) examined the determinants of bank interest margins and profitability using a bank level data for 80 countries in the 1988- 1995 period. The set of variables included several factors accounting for bank characteristics, macroeconomic conditions, taxation, regulations, financial structure, and legal indicators. The study reported that a larger ratio of bank assets to GDP and a lower market concentration ratio lead to lower margins and profits. Foreign banks have higher margins and profits than domestic banks on developing countries, while the opposite prevail in developed countries. DemerguÃÆ' §-Kunt and Huizingha (2001) presented evidence on the impact of financial development and structure on bank profitability using bank level data for a large number of developed and developing countries over the 1990-1997 period. The study found that financial development has a very important impact on bank performance. It reported that higher bank development was related to lower bank performance. Stock market development on the other hand, leads to increased profits and margins for banks especially at lower levels of financial development, indicating complementarities between bank and stock market. CHAPTER 3 THEORETICAL FRAMEWORK AND HYPOTHESIS The interest rate assummed to be one of the most important factors that affect commercial banks profitability. The issue which deals in the study was the affect of market interest rate fluactuation has adversly related to commercial bank profitability. This thesis study bring opportunity to established a relationship between fluctuations in interest rates and the performance of commercial banks in Pakistan during the period of 2004- 2008. The main purpose of this study was to determine the implication of fluctuations in market interest rates on the profitability of commercial banks in Pakistan. This study provide Major causes of interest rate fluctuations The extent to which commercial banks are set to manage interest rate related risks. Major causes of Interest Rate Fluctuation were unstable government Policies, Unstable Economic Environment, unavailability of long-term funds, Inflation. The factors that affect the commercial bank profitability were significant mismatch in the maturity profiles of Assets and Liabilities, Frequent Interest Rate Fluctuations, under capitalization of banks, Poor Collateral of credits. Pakistans financial sector included nationalized, foreign, and private banks; and Non-banking Financial Institutions (NBFIs) which include Development Finance Institutions (DFIs), Investment Banks, leasing companies, modarabas, and housing finance companies. Scheduled Banks know as also commercial bank regulated by the State Bank of Pakistan regulated through different wings, and subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of man