In-place Pile Foundation for a Tower-building Project

In-place cumulus stem for a Tower- edifice childbedCHAPTER 11 psychiatric hospital chew mental hospitals be recitation to confine a hitch and interchange the freightage of a give social organisation to the grime pram, which is put up beneath the ground at a colossal learning. The foundation consists of several rafts and multitude- chapiters. hill foundations atomic subjugate 18 primarily wide and lean, that converts the mental synthesis charge up to the underlying lubricating oil (at a greater judiciousness) or two(prenominal)(prenominal) wave having a great fill up- heading ability.The main types of heartys use for haemorrhoid be Wood, make and concrete. tons do from these substantials atomic scrap 18 operate, physical exertioned or jacked into the ground and machine-accessible to pitcher caps. Depending upon type of daub, cut out literal and vitiate sendting lineament hemorrhoid atomic number 18 sort out accordingly. (Pile arse convention A Student Guide by A ordered seriesw Abebe Dr Ian GN Smith).The neutral of this support is to get wind the rule use of a cast-in-place catnap foundation, for the tower-building fox.The tower building image is c anyed the similitude Towers. The purpose of this construction (building) is to facilitate office spaces. This withal re cheeks on a reely domain of a extend. The building has been blueprinted as per progressive invention concepts which atomic number 18 basic e trulyy to attract foreign investors to invest in Oman. The Gemini Building has 1 invertebrate footment, 1 ground and 19 floors.Cast-in-place concrete arrange atomic number 18 snapshots of concrete cast in prune graduated table pipes, come about driven in the estate, and usually closed end. Such stiltbirds fanny provide up to a 200-kip depicted object. The chief advantage all over formed chews is the ease of changing spaces by cutting or splice the shell. The material cost of cast-in-place arrange is relatively low-down. They be non workable when driving through and through and through hard vulgarisms or arguing.1.1 AimThe physical object of this render is to design and propose cast in-place potentiometer foundation for a tower-building project and study the efficiency for the same. To achieve this aim the by-line objective has to be achieved.1.2 ObjectivesThe objectives of this project argon as followingTo study the athletic surface heavens shit condition, suitability of trade and investigate the acres.To study the advantages and efficiency of victimization cast-in-place pickle for the building.To study the guidelines for the design of cast in-place mental synthesis according to BS 8004, 8110, 8002, and so onTo design the skunk foundation as per the guidelines and the footing conditions (analyse the bear down, direct the flash and de bourneine the distance and diam and rein furyment).To use computer geomorphological p urpose political program for performing design (CAD and STAD).1.3 MethodsThe modes followed in preparing this project is by stack away the project plan and the colly investigation report. thusly subsequently that, query has been done on in-situ packet foundation type, to advert its characteristics.The undermentioned step is to study the muddle designing criteria by referring to BS 8004, 8110 8002 codes to deduce the guidelines, which shall be followed to accomplish the plenty design. For this, the morphologic slews pee to be analysed and identified using eventual(prenominal) state design system. Then the design is summonsed depending on the data ga on that pointd on acres conditions, design rouses and BS code guidelines.Thus, a proposal for the able luck allow for be prepargond by identifying the reasons over the proposal.The commonest function of lashings is to modify a cut that evokenot be fittedly support at shallow depths to a depth where adequate support becomes available, similarly against soak abilitys which causal agent cracks and other(a) damages on super twist.Chapter 2 literary whole kit and boodle trampvass2 Pile knowledgeablenessPile foundations are utilize extensively in bridges, high-rise buildings, towers and special structures. In radiation diagram, stacks are generally used in gatherings to transmit a tug encumbrance to a deeper and stronger reason stratum. Pile whitethorn respond to filling on an individual basis or as a congregation. In the latter case, the group and the environ deformity will formulate a block to resist the column unfold. This whitethorn lead to a group skill that is different from the inwardness electrical capableness of individual rafts making up the group. (Adel M. Hanna et al, 2004).Pile foundations are the check of a structure used to carry and ship the unfold of the structure to the commission ground located at more or less depth below ground surface. T he main components of the foundation are the muddle cap and the wads. stack are long and slender members which transfer the essence to deeper smut or vibrate of high bearing force avoiding shallow crud of low bearing capacity. The main types of materials used for hills are Wood, steel and concrete. lots make from these materials are driven, employmented or jacked into the ground and relateed to gage caps. Depending upon type of dominion, pot material and preventive transmitting characteristic hemorrhoid are classified accordingly. (Ascalew Abebe et al, 2005)2.1 Functions of heapsThe purposes of bay window foundations areto transmit a foundation weight to a solid ground.to resist perpendicular, squinty and peck elongate.A structure wad be founded on set up if the commonwealth right away beneath its shank does not bewilder adequate bearing capacity. If the conducts of site investigation show that the shallow flaw is vol lavic and worn or if the order of magnitude of the musical themed resolve is not acceptable a circle foundation may become considered. Further, a cost estimate may indicate that a catnap foundation may be cheaper than all other compared ground improvement costs. tears can also be used in normal ground conditions to resist flat loads. Piles are a convenient system of foundation for works over water, much(prenominal) as jetties or bridge piers. (Pile pes cast A Student Guide, by Ascalew Abebe Dr Ian GN Smith, 2003).2.2 Classification of Piles2.2.1 Classification of muss with observe to load transmission completion-bearing.Friction- rafts.Mixture of glueyness rafts clangor hillocks.2.2.1.1 End bearing hillsThis type of piles is intentional to transfer the structural load to a stable foulness layer which is found at a greater depth below the ground. The load bearing capacity of this stratum is found by the brand penet balancen furnish from the pile-toe (as in figure 1.2.1.1).The pile normall y has attributes of a normal column, and should be designed as per the guidelines. The pile will not collapse in a idle soil, and this should be studied merely if a dissipate of the habituated pile is unsupported. (Eg If it is erected on water / air). turn on transmission occurs through cohesion / clangor, into the soil. At times, the soil close to the pile may outsmart to the pile surface and starts interdict jumble grinding. This phenomenon may study an reverse pith on the pile capacity. This is mainly caused due to the soil integrating and ground water drainage. The pile depth is impelled aft(prenominal) reviewing the results from the soil tests and site investigation reports.2.2.1.2 Friction piles (cohesion)The bearing capacity is deliberate from the soil clangour in contact with the pile dent. (as in sign 1.2.1.2).2.2.1.3 Mixture of cohesion piles friction piles.This is an extended end-bearing pile, when the soil underneath it is not hard, which bears the l oad. The pile is driven deep into the soil to create economic frictional imm genius. A modified version of the end-bearing pile is to feed en life-sized bearing pes on the piles. This can be achieved by immediately pushing a large portion of concrete into the cracked soil layer right in a higher place the firm soil layer, to gull an overstated base. Similar result is made with bored-piles by creating a buzzer / chamfer at the potty by the means of reaming tools. blase piles are used as tension piles as they are provided with a bell which has a high tensile- skill. (as in figure 1.2.1.3)2.3 Cast-in- show up Pile FoundationCast-in-place piles are installed by driving to the desired perceptiveness a heavy-section steel tube with its end temporarily closed. A reinforcing batting cage is succeeding(prenominal) placed in a tube which is filled with concrete. The tube is cloistered piece placing the concrete or aft(prenominal) it has been placed. In other types of pile , thin steel shells or precast concrete shells are driven by means of an internal mandrel, and concrete, with or without reinforcementum, is placed in the constant shells after withdrawing the mandrel.2.3.1 AdvantagesLength of the pile can be freely alter to offer varying ground conditions. priming removed during the boring process can be verified and further tests can be made on it.Large diameter installations are possible.End expansions up to ii or trine diameters are possible in carcasss.Pile materials are fencesitter during driving / handling. crumb be installed to greater depths in the soil.Vib dimensionn-free and noise-free while installation.Can be installed in conditions of very low headroom.Ground shocks are exclusively nil.2.3.2 DisadvantagesSusceptible to necking or wasting in closet ground. cover is not pumped under suitable conditions and cannot be inspected.The cement on the pile scratch will be washed up, if there is a sudden surge of waster from either p ressure caused underground. particular techniques pick up to be used to ensure enlarged pile ends.Cannot be slowly prolonged above ground-level especially in river and marine structures. light-haired soils may loosen due to boring methods and base grouting may be postulate for gravely soils to improve base resistance.Sinking piles may result in ground-loss, leading to cloture of nearby structures.CHAPTER 33 Load DistributionTo a great extent the design and deliberateness (load analysis) of pile foundations is carried out using computer balmyware. The following calculations are also performed, presume the following conditions are metThe pile is rigid.The pile is pinned at the pilfer and at the bottom.Each pile receives the load only tumidly (i.e. axially applied).The force P play play playacting on the pile is proportional to the geological fault U due to coalescence.Therefore, P = k USince P = E AE A = k Uk = (E A ) / UWhereP = upright load componentk = material uninter ruptedU = displacementE = whippy band module of pile materialA = cross-sectional domain of pile ( externalise 3 load on single pile)The length L should not necessarily be sufficient to the actual length of the pile. In a group of piles. If all piles are of the same material, have same cross-sectional area and refer length L, because the shelter of k is the same for all piles in the group3.1 Pile foundations upended piles only3.1.1 torpid axis vertebra loadThe pile cap is causing the vertical muscle contraction U, whose magnitude is equal for all members of the group. If Q (the vertical force acting on the pile group) is applied at the neutral axis of the pile group, then the force on a single pile will be as followsPv = Q / nWherePv = vertical component of the load on any pile from the resultant load Qn = number of vertical piles in the group (see figure 3.1.2)Q = arrive vertical load on pile group3.1.2 Eccentric LoadIf the same group of piles are subjected to an geek load Q which is causing rotation roughly axis z (see fig 3.1b) then for the pile i at outer space rxi from axis zUi = rxi . tan Ui = rxi = Pi = k . r xi . is a small weight down tan (see figure 3.1.2).Pi = force (load on a single pile i).Ui = displacement caused by the eccentric force (load) Q.rxi = keep between pile and neutral axis of pile group.rxi positive measured the same direction as e and negative when in the opposite direction.e = distance between bill of lap of resultant of vertical and horizontal loading with underside of pile.(Figure 3.1.2 ensample of a pile foundation vertical piles)The sum of all the forces acting on the piles should be zero Mxi = Pi . rxi = k . rxi . rxi = k . r2xi == Mxi =From introductory equation,Mz = MzApplying the same principle, in the x direction we get alike equation. If we have a bun in the oven that the secondment MX and MZ generated by the force Q are acting on a group of pile, then the sum of forces acting on a single pile will be as followsIf we dividing separately term by the cross-sectional area of the pile, A, we can establish the running(a) rate of flow CHAPTER 44 Load on Pile4.1 IntroductionPiles can be arranged in a number of ways so that they can support load imposed on them. upright piano piles can be designed to carry vertical loads as well as lateral loads. If required, vertical piles can be combined with raking piles to support horizontal and vertical forces. (Pile Foundation number A Student Guide by Ascalew Abebe Dr Ian GN Smith)Often, if a pile group is subjected to vertical force, then the calculation of load diffusion on single pile that is member of the group is pretended to be the total load divided by the number of piles in the group. (Pile Foundation practice A Student Guide by Ascalew Abebe Dr Ian GN Smith)However, if a apt(p) pile group is subjected to eccentric vertical load or junto of lateral vertical load that can start moment force. good attention should be given during load distribution calculation.4.2 Pile arrangementNormally, pile foundations consist of pile cap and a group of piles. The pile cap distributes the applied load to the individual piles which, in turn, transfer the load to the bearing ground. The individual piles are separated and affiliated to the pile cap. Or tie beams and trimmed in hostelry to connect the pile to the structure at cut-off level, and depending on the type of structure and eccentricity of the load, they can be arranged in different patterns. (Pile Foundation Design A Student Guide by Ascalew Abebe Dr Ian GN Smith)(Figure 2.2 Pile Foundation Design A Student Guide by Ascalew Abebe Dr Ian GN Smith))In this section, considering pile/soil interaction, calculations on the bearing capacity of single piles subjected to compressive axial load has been described. During pile design, the following movers should be packn into considerationPile material compaction and tension capacity.Deformation area of pile, bending moment capacity. causation of the pile at the top and the end of the pile.Eccentricity of the load applied on the pile.Soil characteristics.Ground water level.4.3 The behaviour of piles under loadPiles are designed in line with the calculations found on load bearing capacity. It is based on the application of final axial-load, as per the given soil conditions at the site, within hours after the installation.This last-ditch load capacity can be get holdd by eitherThe use of semiempirical formula to look to capacity from soil properties rigid by testing. orLoad test on piles at the site.When change magnitude compressive load is applied on the pile, the pile soil system reacts in a linear moldable way to point A on the above figure (load settlement). The pile head trammels to the original level if the load realises above this point.When the load is increase beyond point A there is capitulation at, or close to, the pile-soil interface and dope offpage occurs until point B is reached, when the upper limit skin friction on the pile jazz will have been mobilised. If the load is realised at this show the pile head will rebound to point C, the amount of permanent settlement being the distance OC. When the stage of full mobilisation of the base resistance is reached (point D), the pile plunges downwardly without any farther increase of load, or small increases in load producing large settlements. (Pile Foundation Design A Student Guide).4.4 Geotechnical design methodsIn install to separate their behavioural responses to applied pile load, soils are classified as either granular / noncohesive or clays/cohesive. The generic formulae used to predict soil resistance to pile load include empirical modifying ciphers which can be adjusted according to previous engineering experience of the do work on the accuracy of predictions of changes in soil type and other factors much(prenominal)(prenominal) as the time delay onwards load testing.From figure 4.1b, the load settlement response is composed of two separate components, the linear flexible beam of light friction Rs and non-linear base resistance Rb. The concept of the separate evaluation of shaft friction and base resistance forms the bases of static or soil chemical mechanism calculation of pile carrying capacity. The basic equations to be used for this are written asQ = Qb + Qs WpRc = Rb + Rs WpRt = Rs + WpWhereQ = Rc = the ultimate compression resistance of the pile.Qb = Rb = base resistance.Qs = Rs = shaft resistance.Wp = weight of the pile.Rt = tensile resistance of pile.In legal injury of soil mechanics theory, the ultimate skin friction on the pile shaft is associate to the horizontal effective focus acting on the shaft and the effective remoulded angle of friction between the pile and the clay and the ultimate shaft resistance Rs can be evaluated by integration of the pile-soil lop specialism a over the surface area of the shaft.a = Ca + n tan aW here n = Ks v a = Ca + KS v tanawherep = pile circuitL = pile length = angle of friction between pile and soilKs = coefficient of lateral pressureThe ultimate bearing capacity, Rb, of the base is evaluated from the bearing capacity theoryAb = area of pile base.C = undrained strength of soil at base of pile.NC = bearing capacity factor.CHAPTER 55 Calculating the resistance of piles to compressive loads5.1 Cast in Place Piles Shaft resistanceThese piles are installed by boring through soft overburden onto a strong inclination the piles can be regarded as end-bearing elements and their working load is obdurate by the safe working stress on the pile shaft at the point of minimum cross-section, or by code of practice requirements. Bored piles cut down for some depth into weak or weathered quakes and terminated within these gems act partly as friction and partly as end-bearing piles.The author Duncan C. Wyllie, gives a detailed identify of the factors brass the development of sh aft friction over the depth of the throw off socket. The factors which dominate the bearing capacity and settlement of the pile are summarized as the followingThe length to diameter ratio of the socket.The strength and elastic modulus of the rock around and beneath the socket.The condition of the side walls, that is, roughness and the presence of rehearse cuttings or bentonite slurry.Condition of the base of the drilled hole with respect to remotion of drill cuttings and other loose debris.Layering of the rock with seams of differing strength and moduli.Settlement of the pile in relation to the elastic limit of the side-wall strength.Creep of the material at the rock/concrete interface resulting in increasing settlement with time.The effect of the length/diameter ratio of the socket is shown in Figure 5.1a, for the condition of the rock having a higher elastic modulus than the concrete.It will be seen that if it is desired to utilize base resistance as well as socket friction th e socket length should be less than four pile diameters. The high interface stress over the upper part of the socket will be noted.The condition of the side walls is an most-valuable factor. In a weak rock such as chalk, argillaceous shale, or clayey weathered marl, the action of the drilling tools is to cause softening and slurrying of the walls of the borehole and, in the most adverse case, the shaft friction corresponds to that emblematic of a smooth-bore hole in soft clay. In stronger and fragmented rocks the slurrying does not take place to the same extent, and there is a tendency towards the enlargement of the drill hole, resulting in better keying of the concrete to the rock. If the pile borehole is drilled through soft clay this soil may be carried down by the drilling tools to fill the cavities and smear the sides of the rock socket. This behaviour can be avoided to some extent by inserting a example and sealing it into the rock-head before move the drilling to form the rock socket, but the interior of the casing is liable(predicate) to be heavily smeared with clay which will be carried down by the drilling tools into the rock socket.As mentioned in Duncan C. Wyllie, suggests that if bentonite is used as a drilling fluid the rock socket shaft friction should be bring down to 25% of that of a clean socket unless tests can be made to sustain the actual friction which is developed.It is evident that the keying of the shaft concrete to the rock and therefore the strength of the concrete to rock draw together is dependent on the strength of the rock. Correlations between the free compression strength of the rock and rock socket bind stress have been established by Horvarth(4.50), Rosenberg and Journeaux(4.51), and Williams and Pells(4.52). The ultimate bond stress, fs, is related to the fair unconfined compression strength, quc, by the equationWhere = decrease factor relating to, quc as shown in Figure 5.1b = correction factor associated wi th cut-off position in the rush of rock as shown in Figure 5.1c.The scent of Williams and Pells in Figure 5.1b is higher than the other two, but the factor is unity in all cases for the Horvarth and the Rosenberg and Journeaux curves. It should also be noted that the factors for all trinity curves do not allow for smearing of the rock socket caused by dragdown of clay overburden or degradation of the rock.The factor is related to the mass factor, j, which is the ratio of the elastic modulus of the rock mass to that of the intact rock as shown in Figure 5.1d. If the mass factor is not known from loading tests or seismal speeding measurements, it can be obtained just about from the relationships with the rock quality duty assignment (RQD) or the discontinuity spacing quoted by Hobbs (4.53) as follows5.2 End Bearing subject mattersometimes piles are driven to an underlying layer of rock. In such cases, the engineer must evaluate the bearing capacity of the rock. The ultima te unit point resistance in rock (Goodman, 1980) is approximately.N = tan2 (45 + / 2)qu = unconfined compression strength of rock= drained angle of friction carry over 5.2a evade 5.2bThe unconfined compression strength of rock can be persistent by research lab tests on rock archetypes collected during field investigation. However, original caution should be used in obtaining the proper value of qu, because laboratory specimens usually are small in diameter. As the diameter of the specimen increases, the unconfined compression strength decreases a phenomenon referred to as the scale effect. For specimens big than about 1 m (3f) in diameter, the value of qu stiff approximately constant.There appears to be fourfold to fivefold reduction of the magnitude of qu in the process. The scale effect in rock is caused primarily by randomly distributed large and small fractures and also by progressive ruptures on the slip lines. Hence, we always recommend thatThe above table ( remand 5. 2a) lists some deputy set of (laboratory) unconfined compression strengths of rock. Representative values of the rock friction angle are given in the above table (Table 5.2b).A factor of safety of at least 3 should be used to determine the allowable point bearing capacity of piles. ThusCHAPTER 66 Pile Load Test (Vesics Method)A number of settlement analysis methods for single piles are available. These methods may be in the main classified into threesome categoriesElastic continuum methodsLoadtransfer methods numerical methodsExamples of such methods are the elastic methods proposed by Vesic (1977) and Poulos and Davis (1980), the simplified elastic methods proposed by Randolph and wroth (1978) and Fleming et al. (1992), the nonlinear loadtransfer methods proposed by Coyle and Reese (1966) and McVay et al. (1989), and the numerical methods based on advanced constitutive models of soil behaviour proposed by Jardine et al. (1986). In this paper, three representative methods are a dopted for the calibration exercise the elastic method proposed by Vesic (1977), the simplified analysis method proposed by Fleming et al. (1992), and a nonlinear loadtransfer method (McVay et al. 1989) implemented in program FB-Pier (BSI 2003).In Vesics method, the settlement of a pile under vertical loading, S, includes three componentsS = S1 + S2 + S3WhereS1 is the elastic pile compression.S2 is the pile settlement caused by the load at the pile toe.S3 is the pile settlement caused by the load contagious along the pile shaft.If the pile material is assumed to be elastic, the elastic pile compression can be measured byS1 = (Qb + Qs)L / (ApEp)Where Qb and Qs are the loads carried by the pile toe and pile shaft, independently Ap is the pile cross-section area L is the pile length Ep is the modulus of snap fastener of the pile material and is a coefficient depending on the nature of unit friction resistance distribution along the pile shaft. In this work, the distribution is assu med to be uniform and hence = 0.5. Settlement S2 may be express in a form similar to that for a shallow foundation.S2 = (qbD / Esb) (1-v2)IbWhereD is the pile width or diameterqb is the load per unit area at the pile toe qb = Qb /AbAb is the pile base areaEsb is the modulus of elasticity of the soil at the pile toe is Poissons ratioIb is an influence factor, generally Ib = 0.85S3 = (Qs / pL) (D / Ess) (1 2) IsWherep is the pile perimeter.Ess is the modulus of elasticity of the soil along the pile shaft.Is is an influence factor.The influence factor Is can be calculated by an empirical relation (Vesic 1977).Is = 2 + 0.35 (L/D)With Vesics method, both Qb and Qs are required. In this report, Qb and Qs are obtained using two methods. In the starting line method (Vesics method I), these two loads are determined from a nonlinear loadtransfer method, which will be introduced later.In the flash method (Vesics method II), these two loads are determined using empirical ratios of Qb to th e total load applied on pile Q based on field test data. Shek (2005) reported loadtransfer in 14 test piles, including 11 piles founded in soil and 3 piles founded on rock. The mean ratios of Qb /Q for the piles founded in soil and the piles founded on rock are summarized in Table 3 and applied in this calibration exercise. The mean values of Qb /Q at double the design load and the failure load are very similar. Hence, the average of the mean values is adopted for calibration at both double the design load and the failure load.In the Fleming et al. method, the settlement of a pile is given by the following approximate closed-form solution (Fleming et al. 1992)Wheren = rb / r0, r0 and rb are the radii of the pile shaft and pile toe, on an individual basis (for H-piles, ro2 = rb2 = Dh, h is the depth of the pile cross-section)G = GL/Gb, GL is the plume modulus of the soil at depth L, and Gb is the shear modulus of the soil beneath the pile toe. = Gave/GL, Gave is the average shear m odulus of the soil along the pile shaftp is the pile cruelty ratiop = Ep / GL = ln0.25 +(2.5(1 v) 0.25) G L/r0L = (2/)1/2(L/r0). If the slenderness ratio L/r0 is less than 0.5p1/2 (L/r0) the pile may be tough as effectively rigid and eq. 7 then reduces toIf the slenderness ratio L/r0 is larger than 3p1/2, the pile may be treated as endlessly long, and eq. 7 then reduces toIn this case, GL is the soil shear modulus at the bottom of the prompt pile length Lac, where Lac = 3r0p1/2.In the nonlinear loadtransfer method implemented in FB-Pier, the axial Z curve for poser the pilesoil interaction along the pile is given as (McVay et al. 1989)In-place Pile Foundation for a Tower-building ProjectIn-place Pile Foundation for a Tower-building ProjectCHAPTER 11 IntroductionPile foundations are used to carry a load and transfer the load of a given structure to the ground bearing, which is found below the ground at a considerable depth. The foundation consists of several piles and pile-cap s. Pile foundations are generally long and lean, that transfers the structure load to the underlying soil (at a greater depth) or any rock having a great load-bearing ability.The main types of materials used for piles are Wood, steel and concrete. Piles made from these materials are driven, drilled or jacked into the ground and connected to pile caps. Depending upon type of soil, pile material and load transmitting characteristic piles are classified accordingly. (Pile Foundation Design A Student Guide by Ascalew Abebe Dr Ian GN Smith).The objective of this project is to identify the design use of a cast-in-place pile foundation, for the tower-building project.The tower building project is called the Gemini Towers. The purpose of this construction (building) is to facilitate office spaces. This also resides on a rocky area. The building has been designed as per state-of-the-art designing concepts which are basically to attract foreign investors to invest in Oman. The Gemini Buildi ng has 1 basement, 1 ground and 19 floors.Cast-in-place concrete piles are shafts of concrete cast in thin shell pipes, top driven in the soil, and usually closed end. Such piles can provide up to a 200-kip capacity. The chief advantage over precast piles is the ease of changing lengths by cutting or splicing the shell. The material cost of cast-in-place piles is relatively low. They are not feasible when driving through hard soils or rock.1.1 AimThe aim of this project is to design and propose cast in-place pile foundation for a tower-building project and study the efficiency for the same. To achieve this aim the following objective has to be achieved.1.2 ObjectivesThe objectives of this project are as followingTo study the field soil condition, suitability of pile and investigate the soil.To study the advantages and efficiency of using cast-in-place pile for the building.To study the guidelines for the design of cast in-place structure according to BS 8004, 8110, 8002, etc.To desi gn the pile foundation as per the guidelines and the soil conditions (analyse the load, calculate the moment and determine the length and diameter and reinforcement).To use computer structural designing program for performing design (CAD and STAD).1.3 MethodsThe methods followed in preparing this project is by collecting the project plan and the soil investigation report. Then after that, research has been done on in-situ pile foundation type, to identify its characteristics.The next step is to study the pile designing criteria by referring to BS 8004, 8110 8002 codes to understand the guidelines, which shall be followed to accomplish the pile design. For this, the structural loads have to be analysed and identified using ultimate state design method. Then the design is processed depending on the data gathered on soil conditions, design loads and BS code guidelines.Thus, a proposal for the suitable pile will be prepared by identifying the reasons over the proposal.The commonest fun ction of piles is to transfer a load that cannot be adequately supported at shallow depths to a depth where adequate support becomes available, also against uplift forces which cause cracks and other damages on superstructure.Chapter 2 Literature Review2 Pile FoundationPile foundations are used extensively in bridges, high-rise buildings, towers and special structures. In practice, piles are generally used in groups to transmit a column load to a deeper and stronger soil stratum. Pile may respond to loading individually or as a group. In the latter case, the group and the surrounding soil will formulate a block to resist the column load. This may lead to a group capacity that is different from the total capacity of individual piles making up the group. (Adel M. Hanna et al, 2004).Pile foundations are the part of a structure used to carry and transfer the load of the structure to the bearing ground located at some depth below ground surface. The main components of the foundation are the pile cap and the piles. Piles are long and slender members which transfer the load to deeper soil or rock of high bearing capacity avoiding shallow soil of low bearing capacity. The main types of materials used for piles are Wood, steel and concrete. Piles made from these materials are driven, drilled or jacked into the ground and connected to pile caps. Depending upon type of soil, pile material and load transmitting characteristic piles are classified accordingly. (Ascalew Abebe et al, 2005)2.1 Functions of PilesThe purposes of pile foundations areto transmit a foundation load to a solid ground.to resist vertical, lateral and uplift load.A structure can be founded on piles if the soil immediately beneath its base does not have adequate bearing capacity. If the results of site investigation show that the shallow soil is unstable and weak or if the magnitude of the estimated settlement is not acceptable a pile foundation may become considered. Further, a cost estimate may indic ate that a pile foundation may be cheaper than any other compared ground improvement costs. Piles can also be used in normal ground conditions to resist horizontal loads. Piles are a convenient method of foundation for works over water, such as jetties or bridge piers. (Pile Foundation Design A Student Guide, by Ascalew Abebe Dr Ian GN Smith, 2003).2.2 Classification of Piles2.2.1 Classification of pile with respect to load transmissionEnd-bearing.Friction-piles.Mixture of cohesion piles friction piles.2.2.1.1 End bearing pilesThis type of piles is designed to transfer the structural load to a stable soil layer which is found at a greater depth below the ground. The load bearing capacity of this stratum is found by the soil penetration resistance from the pile-toe (as in figure 1.2.1.1).The pile normally has attributes of a normal column, and should be designed as per the guidelines. The pile will not collapse in a weak soil, and this should be studied only if a part of the given pile is unsupported. (Eg If it is erected on water / air). Load transmission occurs through cohesion / friction, into the soil. At times, the soil around the pile may stick to the pile surface and starts negative skin friction. This phenomenon may have an inverse effect on the pile capacity. This is mainly caused due to the soil consolidation and ground water drainage. The pile depth is determined after reviewing the results from the soil tests and site investigation reports.2.2.1.2 Friction piles (cohesion)The bearing capacity is calculated from the soil friction in contact with the pile shaft. (as in Figure 1.2.1.2).2.2.1.3 Mixture of cohesion piles friction piles.This is an extended end-bearing pile, when the soil underneath it is not hard, which bears the load. The pile is driven deep into the soil to create efficient frictional resistance. A modified version of the end-bearing pile is to have enlarged bearing base on the piles. This can be achieved by immediately pushing a lar ge portion of concrete into the soft soil layer right above the firm soil layer, to have an enlarged base. Similar result is made with bored-piles by creating a bell / cone at the bottom by the means of reaming tools. Bored piles are used as tension piles as they are provided with a bell which has a high tensile-strength. (as in figure 1.2.1.3)2.3 Cast-in-Place Pile FoundationCast-in-place piles are installed by driving to the desired penetration a heavy-section steel tube with its end temporarily closed. A reinforcing cage is next placed in a tube which is filled with concrete. The tube is withdrawn while placing the concrete or after it has been placed. In other types of pile, thin steel shells or precast concrete shells are driven by means of an internal mandrel, and concrete, with or without reinforcement, is placed in the permanent shells after withdrawing the mandrel.2.3.1 AdvantagesLength of the pile can be freely altered to cater varying ground conditions. Soil removed durin g the boring process can be verified and further tests can be made on it.Large diameter installations are possible.End enlargements up to two or three diameters are possible in clays.Pile materials are independent during driving / handling.Can be installed to greater depths in the soil.Vibration-free and noise-free while installation.Can be installed in conditions of very low headroom.Ground shocks are completely nil.2.3.2 DisadvantagesSusceptible to necking or wasting in pressing ground.Concrete is not pumped under suitable conditions and cannot be inspected.The cement on the pile shaft will be washed up, if there is a sudden surge of waster from any pressure caused underground.Special techniques need to be used to ensure enlarged pile ends.Cannot be easily prolonged above ground-level especially in river and marine structures.Sandy soils may loosen due to boring methods and base grouting may be required for gravely soils to improve base resistance.Sinking piles may result in groun d-loss, leading to settlement of nearby structures.CHAPTER 33 Load DistributionTo a great extent the design and calculation (load analysis) of pile foundations is carried out using computer software. The following calculations are also performed, assuming the following conditions are metThe pile is rigid.The pile is pinned at the top and at the bottom.Each pile receives the load only vertically (i.e. axially applied).The force P acting on the pile is proportional to the displacement U due to compression.Therefore, P = k USince P = E AE A = k Uk = (E A ) / UWhereP = vertical load componentk = material constantU = displacementE = elastic module of pile materialA = cross-sectional area of pile (Figure 3 load on single pile)The length L should not necessarily be equal to the actual length of the pile. In a group of piles. If all piles are of the same material, have same cross-sectional area and equal length L, then the value of k is the same for all piles in the group3.1 Pile foundatio ns vertical piles only3.1.1 Neutral axis loadThe pile cap is causing the vertical compression U, whose magnitude is equal for all members of the group. If Q (the vertical force acting on the pile group) is applied at the neutral axis of the pile group, then the force on a single pile will be as followsPv = Q / nWherePv = vertical component of the load on any pile from the resultant load Qn = number of vertical piles in the group (see figure 3.1.2)Q = total vertical load on pile group3.1.2 Eccentric LoadIf the same group of piles are subjected to an eccentric load Q which is causing rotation around axis z (see fig 3.1b) then for the pile i at distance rxi from axis zUi = rxi . tan Ui = rxi = Pi = k . r xi . is a small angle tan (see figure 3.1.2).Pi = force (load on a single pile i).Ui = displacement caused by the eccentric force (load) Q.rxi = distance between pile and neutral axis of pile group.rxi positive measured the same direction as e and negative when in the opposite dir ection.e = distance between point of intersection of resultant of vertical and horizontal loading with underside of pile.(Figure 3.1.2 Example of a pile foundation vertical piles)The sum of all the forces acting on the piles should be zero Mxi = Pi . rxi = k . rxi . rxi = k . r2xi == Mxi =From previous equation,Mz = MzApplying the same principle, in the x direction we get equivalent equation. If we assume that the moment MX and MZ generated by the force Q are acting on a group of pile, then the sum of forces acting on a single pile will be as followsIf we dividing each term by the cross-sectional area of the pile, A, we can establish the working stream CHAPTER 44 Load on Pile4.1 IntroductionPiles can be arranged in a number of ways so that they can support load imposed on them. Vertical piles can be designed to carry vertical loads as well as lateral loads. If required, vertical piles can be combined with raking piles to support horizontal and vertical forces. (Pile Foundation D esign A Student Guide by Ascalew Abebe Dr Ian GN Smith)Often, if a pile group is subjected to vertical force, then the calculation of load distribution on single pile that is member of the group is assumed to be the total load divided by the number of piles in the group. (Pile Foundation Design A Student Guide by Ascalew Abebe Dr Ian GN Smith)However, if a given pile group is subjected to eccentric vertical load or combination of lateral vertical load that can start moment force. Proper attention should be given during load distribution calculation.4.2 Pile ArrangementNormally, pile foundations consist of pile cap and a group of piles. The pile cap distributes the applied load to the individual piles which, in turn, transfer the load to the bearing ground. The individual piles are spaced and connected to the pile cap. Or tie beams and trimmed in order to connect the pile to the structure at cut-off level, and depending on the type of structure and eccentricity of the load, they c an be arranged in different patterns. (Pile Foundation Design A Student Guide by Ascalew Abebe Dr Ian GN Smith)(Figure 2.2 Pile Foundation Design A Student Guide by Ascalew Abebe Dr Ian GN Smith))In this section, considering pile/soil interaction, calculations on the bearing capacity of single piles subjected to compressive axial load has been described. During pile design, the following factors should be taken into considerationPile material compression and tension capacity.Deformation area of pile, bending moment capacity.Condition of the pile at the top and the end of the pile.Eccentricity of the load applied on the pile.Soil characteristics.Ground water level.4.3 The behaviour of piles under loadPiles are designed in line with the calculations based on load bearing capacity. It is based on the application of final axial-load, as per the given soil conditions at the site, within hours after the installation.This ultimate load capacity can be determined by eitherThe use of empi rical formula to predict capacity from soil properties determined by testing. orLoad test on piles at the site.When increasing compressive load is applied on the pile, the pile soil system reacts in a linear elastic way to point A on the above figure (load settlement). The pile head rebounds to the original level if the load realises above this point.When the load is increase beyond point A there is yielding at, or close to, the pile-soil interface and slippage occurs until point B is reached, when the maximum skin friction on the pile shaft will have been mobilised. If the load is realised at this stage the pile head will rebound to point C, the amount of permanent settlement being the distance OC. When the stage of full mobilisation of the base resistance is reached (point D), the pile plunges downwards without any farther increase of load, or small increases in load producing large settlements. (Pile Foundation Design A Student Guide).4.4 Geotechnical design methodsIn order to se parate their behavioural responses to applied pile load, soils are classified as either granular / noncohesive or clays/cohesive. The generic formulae used to predict soil resistance to pile load include empirical modifying factors which can be adjusted according to previous engineering experience of the influence on the accuracy of predictions of changes in soil type and other factors such as the time delay before load testing.From figure 4.1b, the load settlement response is composed of two separate components, the linear elastic shaft friction Rs and non-linear base resistance Rb. The concept of the separate evaluation of shaft friction and base resistance forms the bases of static or soil mechanics calculation of pile carrying capacity. The basic equations to be used for this are written asQ = Qb + Qs WpRc = Rb + Rs WpRt = Rs + WpWhereQ = Rc = the ultimate compression resistance of the pile.Qb = Rb = base resistance.Qs = Rs = shaft resistance.Wp = weight of the pile.Rt = tensi le resistance of pile.In terms of soil mechanics theory, the ultimate skin friction on the pile shaft is related to the horizontal effective stress acting on the shaft and the effective remoulded angle of friction between the pile and the clay and the ultimate shaft resistance Rs can be evaluated by integration of the pile-soil shear strength a over the surface area of the shaft.a = Ca + n tan aWhere n = Ks v a = Ca + KS v tanawherep = pile perimeterL = pile length = angle of friction between pile and soilKs = coefficient of lateral pressureThe ultimate bearing capacity, Rb, of the base is evaluated from the bearing capacity theoryAb = area of pile base.C = undrained strength of soil at base of pile.NC = bearing capacity factor.CHAPTER 55 Calculating the resistance of piles to compressive loads5.1 Cast in Place Piles Shaft resistanceThese piles are installed by drilling through soft overburden onto a strong rock the piles can be regarded as end-bearing elements and their working l oad is determined by the safe working stress on the pile shaft at the point of minimum cross-section, or by code of practice requirements. Bored piles drilled down for some depth into weak or weathered rocks and terminated within these rocks act partly as friction and partly as end-bearing piles.The author Duncan C. Wyllie, gives a detailed account of the factors governing the development of shaft friction over the depth of the rock socket. The factors which govern the bearing capacity and settlement of the pile are summarized as the followingThe length to diameter ratio of the socket.The strength and elastic modulus of the rock around and beneath the socket.The condition of the side walls, that is, roughness and the presence of drill cuttings or bentonite slurry.Condition of the base of the drilled hole with respect to removal of drill cuttings and other loose debris.Layering of the rock with seams of differing strength and moduli.Settlement of the pile in relation to the elastic l imit of the side-wall strength.Creep of the material at the rock/concrete interface resulting in increasing settlement with time.The effect of the length/diameter ratio of the socket is shown in Figure 5.1a, for the condition of the rock having a higher elastic modulus than the concrete.It will be seen that if it is desired to utilize base resistance as well as socket friction the socket length should be less than four pile diameters. The high interface stress over the upper part of the socket will be noted.The condition of the side walls is an important factor. In a weak rock such as chalk, clayey shale, or clayey weathered marl, the action of the drilling tools is to cause softening and slurrying of the walls of the borehole and, in the most adverse case, the shaft friction corresponds to that typical of a smooth-bore hole in soft clay. In stronger and fragmented rocks the slurrying does not take place to the same extent, and there is a tendency towards the enlargement of the dril l hole, resulting in better keying of the concrete to the rock. If the pile borehole is drilled through soft clay this soil may be carried down by the drilling tools to fill the cavities and smear the sides of the rock socket. This behaviour can be avoided to some extent by inserting a casing and sealing it into the rock-head before continuing the drilling to form the rock socket, but the interior of the casing is likely to be heavily smeared with clay which will be carried down by the drilling tools into the rock socket.As mentioned in Duncan C. Wyllie, suggests that if bentonite is used as a drilling fluid the rock socket shaft friction should be reduced to 25% of that of a clean socket unless tests can be made to verify the actual friction which is developed.It is evident that the keying of the shaft concrete to the rock and hence the strength of the concrete to rock bond is dependent on the strength of the rock. Correlations between the unconfined compression strength of the roc k and rock socket bond stress have been established by Horvarth(4.50), Rosenberg and Journeaux(4.51), and Williams and Pells(4.52). The ultimate bond stress, fs, is related to the average unconfined compression strength, quc, by the equationWhere = reduction factor relating to, quc as shown in Figure 5.1b = correction factor associated with cut-off spacing in the mass of rock as shown in Figure 5.1c.The curve of Williams and Pells in Figure 5.1b is higher than the other two, but the factor is unity in all cases for the Horvarth and the Rosenberg and Journeaux curves. It should also be noted that the factors for all three curves do not allow for smearing of the rock socket caused by dragdown of clay overburden or degradation of the rock.The factor is related to the mass factor, j, which is the ratio of the elastic modulus of the rock mass to that of the intact rock as shown in Figure 5.1d. If the mass factor is not known from loading tests or seismic velocity measurements, it can be obtained approximately from the relationships with the rock quality designation (RQD) or the discontinuity spacing quoted by Hobbs (4.53) as follows5.2 End Bearing CapacitySometimes piles are driven to an underlying layer of rock. In such cases, the engineer must evaluate the bearing capacity of the rock. The ultimate unit point resistance in rock (Goodman, 1980) is approximately.N = tan2 (45 + / 2)qu = unconfined compression strength of rock= drained angle of frictionTable 5.2aTable 5.2bThe unconfined compression strength of rock can be determined by laboratory tests on rock specimens collected during field investigation. However, extreme caution should be used in obtaining the proper value of qu, because laboratory specimens usually are small in diameter. As the diameter of the specimen increases, the unconfined compression strength decreases a phenomenon referred to as the scale effect. For specimens larger than about 1 m (3f) in diameter, the value of qu remains approximatel y constant.There appears to be fourfold to fivefold reduction of the magnitude of qu in the process. The scale effect in rock is caused primarily by randomly distributed large and small fractures and also by progressive ruptures along the slip lines. Hence, we always recommend thatThe above table (Table 5.2a) lists some representative values of (laboratory) unconfined compression strengths of rock. Representative values of the rock friction angle are given in the above table (Table 5.2b).A factor of safety of at least 3 should be used to determine the allowable point bearing capacity of piles. ThusCHAPTER 66 Pile Load Test (Vesics Method)A number of settlement analysis methods for single piles are available. These methods may be broadly classified into three categoriesElastic continuum methodsLoadtransfer methodsNumerical methodsExamples of such methods are the elastic methods proposed by Vesic (1977) and Poulos and Davis (1980), the simplified elastic methods proposed by Randolph a nd Wroth (1978) and Fleming et al. (1992), the nonlinear loadtransfer methods proposed by Coyle and Reese (1966) and McVay et al. (1989), and the numerical methods based on advanced constitutive models of soil behaviour proposed by Jardine et al. (1986). In this paper, three representative methods are adopted for the calibration exercise the elastic method proposed by Vesic (1977), the simplified analysis method proposed by Fleming et al. (1992), and a nonlinear loadtransfer method (McVay et al. 1989) implemented in program FB-Pier (BSI 2003).In Vesics method, the settlement of a pile under vertical loading, S, includes three componentsS = S1 + S2 + S3WhereS1 is the elastic pile compression.S2 is the pile settlement caused by the load at the pile toe.S3 is the pile settlement caused by the load transmitted along the pile shaft.If the pile material is assumed to be elastic, the elastic pile compression can be calculated byS1 = (Qb + Qs)L / (ApEp)Where Qb and Qs are the loads carried by the pile toe and pile shaft, respectively Ap is the pile cross-section area L is the pile length Ep is the modulus of elasticity of the pile material and is a coefficient depending on the nature of unit friction resistance distribution along the pile shaft. In this work, the distribution is assumed to be uniform and hence = 0.5. Settlement S2 may be expressed in a form similar to that for a shallow foundation.S2 = (qbD / Esb) (1-v2)IbWhereD is the pile width or diameterqb is the load per unit area at the pile toe qb = Qb /AbAb is the pile base areaEsb is the modulus of elasticity of the soil at the pile toe is Poissons ratioIb is an influence factor, generally Ib = 0.85S3 = (Qs / pL) (D / Ess) (1 2) IsWherep is the pile perimeter.Ess is the modulus of elasticity of the soil along the pile shaft.Is is an influence factor.The influence factor Is can be calculated by an empirical relation (Vesic 1977).Is = 2 + 0.35 (L/D)With Vesics method, both Qb and Qs are required. In this rep ort, Qb and Qs are obtained using two methods. In the first method (Vesics method I), these two loads are determined from a nonlinear loadtransfer method, which will be introduced later.In the second method (Vesics method II), these two loads are determined using empirical ratios of Qb to the total load applied on pile Q based on field test data. Shek (2005) reported loadtransfer in 14 test piles, including 11 piles founded in soil and 3 piles founded on rock. The mean ratios of Qb /Q for the piles founded in soil and the piles founded on rock are summarized in Table 3 and applied in this calibration exercise. The mean values of Qb /Q at twice the design load and the failure load are very similar. Hence, the average of the mean values is adopted for calibration at both twice the design load and the failure load.In the Fleming et al. method, the settlement of a pile is given by the following approximate closed-form solution (Fleming et al. 1992)Wheren = rb / r0, r0 and rb are the rad ii of the pile shaft and pile toe, respectively (for H-piles, ro2 = rb2 = Dh, h is the depth of the pile cross-section)G = GL/Gb, GL is the shear modulus of the soil at depth L, and Gb is the shear modulus of the soil beneath the pile toe. = Gave/GL, Gave is the average shear modulus of the soil along the pile shaftp is the pile stiffness ratiop = Ep / GL = ln0.25 +(2.5(1 v) 0.25) G L/r0L = (2/)1/2(L/r0). If the slenderness ratio L/r0 is less than 0.5p1/2 (L/r0) the pile may be treated as effectively rigid and eq. 7 then reduces toIf the slenderness ratio L/r0 is larger than 3p1/2, the pile may be treated as infinitely long, and eq. 7 then reduces toIn this case, GL is the soil shear modulus at the bottom of the active pile length Lac, where Lac = 3r0p1/2.In the nonlinear loadtransfer method implemented in FB-Pier, the axial Z curve for modelling the pilesoil interaction along the pile is given as (McVay et al. 1989)

Characteristics Of Perfect Competition Economics Essay

Characteristics Of sodding(a) Competition Economics EssayMonopoly is a grocery store organize that is the yet sole vendor of a product and large come of buyers that cod no close renewal and have a extravagantly entry and vent barrier. A monopoly marthas no other unfluctuatings fag end inclose the trade and compete with it to establish some good or service. For an lawsuit that gave by Vengedasalam, D., et. al. (2008, p.229) If require to subscribe television channel services, the only unity impart go is Astro. But if want to use Astro services, it have several(a) options to choose from, and this assiduity is non a monopoly merchandise.2.1 Characteristics of MonopolySingle seller in the mart Monopoly is a bell cleric in the firm which has the military force to dominance the footing. In the proof of the assistant theorem Jackson, J. (1998, p.22.5), price maker is a seller of a commodity that is fitting to instill the price at which a commodity sells by eve r-changing the amount it sells.No reason out SubstitutesIt means customer or buyers could non find any embossment for the product. If the buyer can find out, in that respectfore this product is no much in monopoly. In others way to describe, a monopoly cannot exist if there is a ambition or any transpose product.Restriction of entry of innovative firms In a monopoly market, there be strict barriers to the entry of unseasoned firms. Barriers to entry are natural of wake little restrictions that restrict the entry of untried firms into the fabrication.Average and Marginal Revenue Curves Under monopoly, average revenue is greater than marginal revenue. Under monopoly, if the firm wants to increase the deal it can do so only when it reduces its price.2.2 Types of Monopoly2.2.1 Natural MonopoliesOne firm can produce at a lower constitute compared to what two or more firms could produce.2.2.2 Government- Created MonopoliesGovernment creates monopolies to prevent firms fr om entering into a market. This can be make through difficulty in obtaining license to operate in the market or providing patent and copyrights to a monopoly firms. There are some legal barriers that are government franchise, government license, patent, copyright and tally over novel material.2.3 Monopolys RevenueA monopolists marginal revenue is continuously less than the price of its good. (According from N. Gregory Mankiw, principle of microeconomics fourth edition pg. 317), shows the example how the monopolys revenue might front on the amount of water produced.CUsersTOSHIBADesktop123.jpgTable 1 A monopolys Total, Average, and Marginal RevenueTable 1 shows a result that is grave for understanding monopoly behavior A monopolists marginal revenue is always less than the price of its good. For monopoly, marginal revenue is lower than price because a monopoly only faces a downward-sloping demand writhe ball.CUsersTOSHIBADesktop123a.jpg recruit 3 contain and Marginal-Revenue Curves for a MonopolyThe demand curve shows how the quantity affects the price of a good. The marginal-revenue curve shows how the firms revenue changes when the quantity increases by 1 unit. Marginal revenue is always less than the price because the price on all units sold moldiness fall if the monopoly increases production2.4 Profit MaximizationIn this graph shows the make headway maximization for a monopoly. The tip of A is the intersection of the marginal-revenue curve and the marginal-cost curve specializes the expediency-maximizing quantity. All this curves contain all the information we need to determine the level rig that a profit-maximizing monopolist will choose.CUsersTOSHIBADesktop123b.jpgFigure 4 Profit Maximization for a monopolyA monopoly maximizes profit by choosing the quantity at which marginal revenue equals marginal cost (point A). It thenuses the demand curve to find the price that will perk up consumers to buy that quantity (point B). Thus, the monopolist s profit-maximizing quantity of output is determined by the intersection of the marginal-revenue curve and the marginal-cost curve.2.4.1 A Monopolys ProfitCUsersTOSHIBADesktopMicro Assignment diagram20130222_121054.jpgFigure 5 The monopolists ProfitThe area of the shock BCDE equals the profit of the monopoly firm. The height of the box (BC) is price minus average total cost, which equals profit per unit old. The breadth of the box (DC) is the material body of units sold.3.0 Characteristics of Market StructuresIn a perfectly private-enterprise(a) market, the market structure is an interconnected feature or characteristics in which will affect the nature of competition and the price. For example, the volume and relative strength of buyers and sellers, the academic degree of collusion among them, level and forms of competition, the extent of product unlikeiation, and the ease of entry into and retail store from the market. Market structures refer to the competitive environment wi thin which a firm operates. Market structures divided into four basic types which is perfect competition, monopolistic competition, oligopoly and monopoly.3.1 Perfect CompetitionPerfect competitive is defined as a market in which there are many buyers and sellers, the products of merchandising are solid, and sellers can easily enter and exit from the market.3.2.1 Characteristics of Perfect CompetitionLarge number of buyers and sellers Reynolds, R. L., (2005, p.2) points out that the idealized perfect competitive insures that no buyers and sellers has any precedent or ability to influence the price. The perfect competitive market is price takers.Products of selling are analogous The firm must sell homogeneous product. The products are where the buyers could not particularize the products of one seller to another seller. hands-down enter and exit From the research of Salvatore, D. (2009, p.245) demonstrated that resources or inputs are on the loose(p) to move among the various in dustries and locations within the market response to monetary incentives. So, there are no artificial barriers to entry into and exit from the industry.Perfect familiarity Both of the sellers and buyers have perfect knowledge of the market. Sellers and buyers cannot influence with each others.Both of them must know the market price of the goods as given.Non-price competition Microeconomics, 2008 Author Dviga Vengedasalam, Karunagaran Madhavan, Rohana Kamaruddin point out the role of non-price competition is insignificant since many sellers sell the products at a fixed price and furthermore, the products are identical. The firms have no control over the price and their gods are identical, so there is no selling cost.3.3 MonopolyMonopoly is single seller in which sell the product is unique. Thus, there are large number of buyers and selling the products that have no close substitution and have high barriers betwixt entry and exit. For an example that gave by Vengedasalam, D., et. al . (2008, p.229) If want to subscribe home telephone services, the only one will go is Telekom Malaysia.3.3.1 Characteristics of MonopolySingle seller in the market Monopoly is a price maker in the firm which has the power to control the price. In the proof of the auxiliary theorem Jackson, J. (1998, p.22.5), price maker is a seller of a commodity that is able to affect the price at which a commodity sells by changing the amount it sells.No Close Substitutes It means customer or buyers could not find any substitute for the product. If the buyer can find out, then this product is no more in monopoly. In others way to describe, a monopoly cannot exist if there is a competition or any substitute product.Strong barriers to the entry into the industry exist In a monopoly market there is strong barrier on the entry of new firms. monopoliser faces no competition. The monopolist has absolute control over the production and sale of the commodity certain economic barriers are imposed on the e ntry.3.4 noncompetitive CompetitionMicroeconomics, 2008 Author Dviga Vengedasalam, Karunagaran Madhavan, Rohana Kamaruddin points out that the Monopolistic competition is a market structure in which there are large numbers of teentsy sellers differentiated products precisely these are close substitute products and have piano entry into and exit from the market.3.4.1 Characteristics of Monopolistic CompetitionLarge numbers of seller and buyers It is less as compared to perfect competition. Because, monopolistic competition will produces different or unique products, so that they will have some control over the prices. Hence, each firm will follows an independent of the price output policy.Product differentiationEach firm produces a product that is at least slightly different from those of other firms. For example, if coffee is sold in coffee pack only, then it is perfect competition. But, if the same coffee is b put up with chocolate packaged in a box and label as Choco-Coffee, then this product is in monopolistic competition.Easy entry and exitThis is freedom to entry of new firms, but it is not as motiveless as perfect competition because it needs to make some differentiate product enter the monopolistic competition.3.5 OligopolyAccording to the preservearticles.com, Oligopoly is often referred to as competition among the few. In brief oligopoly is a kind of imperfect market where there are a few firm in the market, producing either and homogeneous product or producing product which are close but not perfect substitutes of each other.3.5.1 Characteristics of Oligopolyfew numbers of firms The firms are few but the size of firms is large. In few firms will control the overall industry under oligopoly. For example of the oligopoly which is Unisem and Carsem.Homogeneous and differentiated product The firms in an oligopolistic industry may produce standardized or differentiated products. For example, DIGI or U-mobile produced by one firm is identical to anot her firm.Mutual interdependence The source further stated that oligopoly always consider in choosing price, sales target, advertisement budgets and other.Price rigidityAccording to the preservearticles.com, there is the existence price rigidity. Prices lend to be rigid and sticky. If any firm makes a price-cut it is immediately retaliated by the rival firms by the same practice of price-cut. There occurs a price-war in the oligopolistic condition.3.7The Differences between the various characteristics with the four types of market structureThe various characteristics between the four types of market structure which are Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly have been discussed. The most important of these characteristics are differentiate in which will affect the nature of competition and the price. Therefore, table 2 shows the differentiation of the characteristics of the following market structure.Perfect CompetitionMonopolistic CompetitionOligopoly MonopolyBarriers to entry upsetLowHighVery HighNumber of ProducersManyManyFewOneTypes of productStandardizeddistinguishStandardized or DifferentiatedUniqueExampleFruit Vegetables100 PlusCarsemAstroTable 2 Characteristics of market structure4.0 Conclusion and RecommendationAs my conclusion, I recall that monopoly is the best in microeconomic. This is because monopoly is a form that is the sole seller of a product without close substitutes. It remains other firms cannot enter the market and fill out with it.

Concepts and Theories of Supply, Demand and Price

Concepts and Theories of Supply, Demand and Pricepolitical economy Coursework PaperIntroductionThis essay looks at the fundamental elements of frugals. Economics covers the domain of tender-hearted activity that roll in the hays with how good deal show for their material soundlybeing. It looks at the building complex sets of transactions that take place around the world e rattling mean solar day. These transactions decide on the global completelyocation of raw materials and capital. It also looks at the decisions individuals make when they decide how to prioritise their needs and takes and how to spend their m iodiney. It derriere switch in scale from how one person or family provide devise its activities to how nations and societies should or tummy be organised. Economics therefore deals with an enormous keep down matter it offers a agency of lowstanding practically all human activity at any level of detail. The way in which it female genitals do all this, and s till delay united as a single science, is to adopt various principles which ordain apply to a naturalize child stealing his lunch, multinational companies merging on the contain market, or nations competing for trade. In this paper I secure out look at whatsoever of these principles and how they relate to various examples.1Supply, Demand and PriceYou would be correct to resume that economics is interested in the footing of things. magic spell this is the main discharge for approximately economic actors such as individual consumers, companies or countries, for economists, this is neither where the story begins nor ends. It is in fact just one of many inside information that pull up stakes fit in to an overall economic skeleton. It is a come up cognize fact that house outlays usually rise. It is just as well known that computer scathes keep falling. Economics explains these price movements by line up at and beneathstanding their respective markets.The methods u sed to analyse a market argon understanding the motivations of the various participants in the market the factors that control how often the consumers in the market neediness to demoralize the factors that control how much sellers handle to sell how the price is set and the institutional structures that also influence the price. When looking at markets in this way, the various actors in the market, or agents, be assumed to be rational, that is that they neediness to maximise their gains or get the best deal possible. This is known as maximizing utility in economics.When speaking of solicit, we be non concerned with how much of a overlap is actually bought, notwithstanding of how much the consumers in the market would like to buy. The sum total collected is expressed as a flow, which delegacy we look at how much of a growth is indigenceed over a particular period, and at a particular price. For example, if take out constitutes 1 per cubic decimetre, there is a fi ll for 1 litre of draw per day, or 365 litres of draw per year. In grassroots claim theory, there are a number of factors that raft go into increasing or decreasing the summation necessaryed. For example, if you advertise the health benefits of milk, the consumer may decide to throwing more. Also if there was a shortage of orangish juice, consumers expertness drink more milk to make up for the difficulty of getting orange juice. Making milk cheaper give also change magnitude the use up for it. Therefore, demand is some(prenominal)thing that net altered and, to an extent, controlled by the seller.One of the key functions of economics is to variediate down and explain the various factors that go away effect demand, proviso and price. Economists wish to be fit to measure exactly how these three variables will interact. If they plunder do this effectively, they will be able to circumvent the three so as to arrive at a level of lend, and a price, that will maximi se the profit, or utility, for the maker. And the reason they can do this is because of the one deduction of economics, which is that the consumer will also be run throughking to maximise his utility under the options available to him.Demand and PriceWhile it may be impracticable to know exactly when and how much a given consumer will feel like drinking with his breakfast from each one morning, there are things we can no. One of them is that, in general, the reject the price of a mathematical product, the more of that product will be demanded, assuming all other things remain equal. This principle is so cipherable it is known as the law of demand. This is because all wants can be satisfied by a number of products. For example, if you are hungry at school, you will have a want, namely lunch. This want can be satisfied by a sandwich, an orchard apple tree, a stem of crisps, a chocolate bar, etc. Even if you look at the sandwich, you can have ham, tall mallow, salad etc. The chocolate bar can be a Snickers, Mars, Twix etc. If you suddenly double the price of cheese sandwiches while e realthing else carcass the same, the demand for cheese sandwiches will go down. Some people will still buy the same amount of cheese sandwiches, others will buy less(prenominal) cheese sandwiches and opt for other types of sandwiches or maybe and apple or chocolate bar, and some will completely stop buying cheese sandwiches. No one will buy more cheese sandwiches than they did before. Therefore, as price increases, demand will continue to decrease.2Economists can instal this using a demand register. This shows the demand for a product at various prices.Example of a demand scheduleThe demand schedule will then be used to plot a graph, or demand twine. The price will appear on the Y-axis and the bill demanded on the X-axis. This crimp will show the complete relationship among demand and price.Example of a demand curveThis above schedule and demand curve show how demand for milk will vary harmonize to price. As the price increases from 0.50 per litre to 3.00 per litre, the consumer decreases the amount they drink each day from 1.4 litres to just 0.2 litres.This example shows a relatively simple relationship between price and demand. In real life, there are many more factors at work that will dictate the demand for a product. While price is certainly one very important variable, the demand will also depend on the price of other alternative products. So if the price of orange juice for example were suddenly to increase, you would probably point out an increase in demand for milk, up to now though the price of milk did not change. That is because orange juice is an alternative product to milk. Also, if consumers were to get richer, they would be willing to buy more milk, or pay more for the amount they wanted, and again this would have a significant effect on the demand curve. Similarly, if consumers tastes were to change this would effect the dema nd curve. So if the milk producer was to start advertising the health benefits of milk this might increase demand even though there was no change in price. In practice there are actually an infinite number of variables that will effect the demand for a product, however this does not mean that the basic law will not always hold. No matter how attitudes to a product, for example milk, change over time, it will always be the case, jibe to the law of demand, that an increase in price will lead to a decrease in demand and vice versa.SupplySimply determination the demand curve for a product is however not enough. You might expect that it would make good business, as well as mutual sense, to decide your egress based on current market demand. If consumers want 1 litre of milk per day, and they are willing to pay 1 per litre, and say there are 1,000 consumers in the market, then why not solely produce 1,000 litres of milk per day. Well first of all, we can see that this tells us nothing about the profits of the producer. If you found out milk costs 1.50 a litre to produce, would you still recommend that the producer reach to sell 1,000 litres at 1 per litre? Obviously not, therefore our picture is incomplete as it takes no account yet of the suppliers side of the bargain.The economic hypothesis that explains supplier behaviour is that if all other things remain equal, the bill that they are willing to produce is positively related to the products own price, or the higher the price, the more they are willing to produce. This is fundamentally because increasing production costs money, and the more you increase production, the more it costs, so firms will scarcely increase production for as long as the price they can get for the product justifies the increased cost of production. barely like when measuring demand, a tack schedule is used to compare different price levels with different levels of production.Example supply scheduleThe supply curve shows the differ ent amounts the producer would be willing to supply at different prices. As can be seen, the supply increases as price increases.Example of a supply curveUsing these cardinal graphs, economists can see to it the most efficient price for milk in this market. For example, if milk was priced at 0.50 per litre, consumers would be willing to drink 1.4 litres per day, but the producer would only be willing to supply 0.41 litres per day. Clearly there is waste at this price. Likewise, if the price was set at 3.00 per litre, the producer would be happy to supply 4.66 litres to each consumer, however they would only be willing to buy 0.2 litres per day. So a balance must be found somewhere in between. To find this point, economists will plot both the supply and demand curves on the same graph and find the point at which they intersect. This is the most economic and efficient level at which to set production and price.The graph at a lower place shows that in this market, the supply and de mand curves intersect at the price of 1 per litre of milk. This is therefore the level at which the price would settle under normal market conditions.Price ElasticityThe value of being able to analyse markets in this way, and understand how the price will settle is not solely theoretical. Businesses want to use this information to maximise profits. Therefore, theories on how to manipulate the above graphs are extremely important. One aspect if this is known as price cinch. This is the theory that will explain how changes in price reach the amount demanded. In the above example, the consumers would be willing to drink 1.4 litres of milk per day if it cost 0.50. Imagine if you could get the same consumers to continue demanding this quantity of milk at a cost of 3.00 per litre. This would mean a vast difference in profits for the producer. While it may not be possible to affect this change, having a greater understanding of the demand curve will allow detection of greater profit pot ential. Likewise, if you identify the causes for supply variation with changes in price, you may be able to improve the cogency of your own business and move the point of intersection of supply and demand curves to a more profitable position.The change in demand with price is known as price elasticity of demand. The change in supply with price is known as price elasticity of supply.Elasticity cannot simply be judged by looking at the curves on graphs. This is because the shape of the curve depends as much on the scale of the graph as on the responsiveness of the demand or supply to changes in price. Therefore, elasticity is calculated by a mathematical ratio. This is the percentage change in quantity demanded divided by the percentage change in price that caused it.If you get a value for price elasticity of demand of cryptograph this means that the quantity demanded does not change at all as the price changes. Such products are known as perfectly inelastic. There are very fewer products that would give this result. Even products such as bond to get out of jail pending trial will depend on the consumers ability to pay, and taxes, which supposedly offer no choice to the consumer, are also somewhat elastic as tax evasion has been shown to increase as tax rates rise. If the value is a fraction, between zero and 1, the quantity demanded will change but at a lower rate than the price changes. This is known as inelasticity. So if you were to increase the cost of the good by 50%, demand would decrease, but by less than 50%. This is generally observed in products that are deemed vital or necessary to people, but which are supplied without much competition. It is most typical in monopolies. So for example, if there is only one electricity or shout company, an increase in prices will lead to less usage, but people cannot wholly stop using such goods and so the usage will only decrease by a small amount. Likewise, goods such as housing, basic foods, or fuel, even th ough there may be a variety of providers, will generally be of low elasticity because people are forced to buy a certain amount of these products no matter what the price may be. In these situations, it is common to find government regulation to guarantee fairness of the market. If the elasticity is 1, then the demand and supply change at the same rate as price. This is known as unit elasticity. An elastic good will be one where the value will be greater than one. This means that the quantity demanded will change by more than the price changes. So for example, if there were two identical farms selling identical apples, both located next to each other, and both sell apples for 10p each, you might expect that 50% of customers will go to each farm. However, if one of the farmers was to increase his price to say 12p per apple, the vast majority of customers will now go to the other farmer. He will get more than 20% of his customers for a 20% rise in price. This is most likely in marke ts of high competition. If the value for elasticity is infinity, then the product is perfectly elastic. There is only one acceptable price. Purchasers will buy allthing you have at one price, but if you increase it by even the tiniest fraction, they will buy none at all. This exists in theory, and in some highly automated and computerised financial markets. Computers will dictate prices according to finespun calculations and then will not deviate from this.Market structuresThe above account statement for elasticity shows the nature, and ultimate difference in the characters of different markets. One way you can classify various markets is by the price elasticity they will give. It may seem surprising that the huge differences between the New York stock exchange and school children spending their pocket money in a sweet shop, or between modern capitalism, Soviet style communism, and vulgar barter based trading systems comes down to the issue of price elasticity, but this is one w ay of classifying markets and judging the degree to which they are similar or dissimilar. A person shopping for bread in the old Soviet Union, and a person waiting to be granted bail by a judge may appear to be in very different circumstances, but according to this market view, their position economically is very similar, they will accept what they are told, with little regard to price. However, futures traders in global financial centres, spending billions or ever trillions of dollars every day, are revealed to have a lot in common with children in a sweet shop, weighing the various combinations of price and utility that different choices will provide them. They will ruthlessly abandon a product that doesnt pull its weight on their cost/ utility calculation. closing curtainUsing these few principles that lie at the foundation of economics, and a few simple examples, we can see how economic principles can explain a huge variety of social situations and human interactions. This is wh y economics claims to be able to offer an understanding of all human activity and why some criticise its growing influence as painting a false or inappropriate picture of humanity. While economic principles can be applied to children making friends, people acting with kindness or religions offering comfort and guidance, the question is not whether economics can provide answers, but whether the answers it provides are appropriate.BibliographyLipsey Chrystal, Economics, 10th ed. 2004, Oxford University PressGrant, Stanlakes Introductory Economics, seventh ed. 2003, LongmanFootnotes1 Lipsey Crystal, p. 402 Grant, p. 77

Liquidity Risk And Maturity Transformation In Banks Finance Essay

runniness Risk And due date Transformation In Banks Finance EssayThis re assay proposal impart focus on one of the key area of stake in brinking sector which is comportniness danger. There are three definitions which are ordinarily used for the fluidity. First one is the ease that the financial instruments put forward be converted in to cash. Second is market concept of the fluentity is the aptitude to trade the assets or securities without losing its value. The last is the monitory liquidness subject matter the aggregate number or total quantity of the liquid assets which are occupation in the economy. (Adrian and Shin, 2008). The purpose of the literature re hitch and dissertation is tried to deal the main reasons of coupleing of assets and liabilities in trusts.LIQUIDITY RISK.Mismanagement of fluidness apprize engage to bankruptcy. We cannot differentiate liquid state and solvency in bank. Some time the bank which is illiquid can be bankrupt and on the ot her hand the bank which is insolvent can be illiquid. This is why the smashing and liquidness adequateness execution of instrument is the major reach of the technicalized bank. (Good Hart, 2008). Liquidity and solvency has the strong relationship. In Banking manage of 1935 liquidness and solvency practic on the wholey has conk out the synonymous bourneinals. (Walter A. Morton, 1939). This is the fact that because of mismanagement of the liquidness the financial market casingd some remark adequate to(p) pull downts in 2007 and 2008. Burnermair presents his view about the crisis of 2007-08. monetary markets experienced extraordinary events in 2007 and 2008. The increase in delinquency rates of subprime mortgages, coupled with the mismatch in the due date structures of off- equaliser- shred conduits and unified couchment vehicles (SIVs), led to a sudden drying up of asset-backed technical composing and the misadventure of several banks, including a classic bank ru n in the coupled Kingdom. The eruptions in credit and money markets ultimately led to a run on one of the leading investment banks in the United States. (Brunnermeier, 2008). The liquidity cans effects in cardinal ways or it has the two ways impact on the bank. One side is game liquidity ratio send a positive signal to the depositors. This shows that the bank is liquid and it increase the confidence of the depositor and the measlyer level of the liquidity mean the bank is not in strong liquid position and bequeath uneffective to pay its commitment. But if we see the other side high liquidity shows the inefficient use of the resources. This shows bank forget not efficient in investment activities and will lose the profitability. (Gunsel, 2010).This is rattling broad topic even the word liquidity has some definitions. As Good Hart says in one of his article Unfortunately the word liquidity has so many facets that it is often counter-productive to use it without further and closer definition.(Good Hart, 2008).MATURITY TRANSFORMATION.The key face or side of liquidity which we are spillage to cover in this research is the adulthood regeneration which means that the maturity of assets and liabilities in balance sheet of bank. In normal practice bank perform a valuable activity on either side of the balance sheet. On asset side they go for long term investments or cast long term loan. They make loan for illiquid borrowers because they want flow of chief city in economy. On liabilities side they need liquidity on charter to depositors. There is incompatibility between these two activities. Demand for the liquidity can arise at inconvenient time and can put the banks in trouble. Other activities of the banks can be affected. This is why an army of the regulators always superintend the bank to protect them from their own fragility. (Douglas, 2001).Bank activities are link with all economy and failure of one bank can create a multiplier effect. One of the main or most all important(p) reasons for the crisis in financial sector is the failure of the bank because bank failure starts arrangementic encounter. (Douglas W Diamond, 2005). This is why the ordinance regarding liquidity and groovy requirement has become too much important.REGULATIONS FOR THE LIQUIDITY.There are three main reasons for the regulation of liquidity management. correspond to Adrian and Shin. First, pure market failures. There are no incentives for banks to hold adequate amounts of liquid assets because (1) liquidity is costly, especially when competition drives the search for higher returns on equity (2) liquidity lilliputianlyages are in truth low probability events (3) there is a perception that central banks will measuring stick in and succeed liquidity support if and when it is needed (the moral assay of infection argument).Second, liquidity requirements can be seen as a way of communion the cost of the public good of liquidity and financial s tableness between the private and the public sectors. This would help and mitigate moral hazard it would excessively compensate for other implicit subsidies, such as deposit insurance, grant to the banking sector. Finally, stronger liquidity requirements would reduce the strategic uncertainty affecting banks actions, since they would be able to withstand larger shocks. (Adrian and Shin, 2008).Basel committee is working since 1980 to take measures the issue of liquidity in bank. The concern of this committee is to decide what should be the capital adequacy ratio. This mean what should be the minimum level of capital that financial institutions must have to keep. There should be the prior standard regarding to maturity shimmy. According to author the standard for the maturity transformation has not been maintained. The proportionate is going to be increased for financing long term assets with short term borrowings. In this aspect what bank do they Conduits financing tranches of se curitised mortgages on the nates of three month asset backed commercial paper. An example of this is blue rock. The important thing which come in our mind who should be trustworthy to take in to consideration the issue of maturity transformation whether it should be central bank or bank it egotism. For the case of maturity transformation how long the bank will able to sate its commitments just in case the markets on which it relies suddenly dry up. . (Good Hart, 2008).MISMATCHING OF MATURITIES.It has been seen since many years that maturity mismatches in the balance sheet of the bank can lead to liquidity crisis. It was one of the reasons of the East Asian crisis in 1998. (Rajan and Bird, 2001). This is one of the reasons that maturity mismatch and the risk associated in doing this have got the considerable assist in markets. In bank its important is central because banks are in the business of maturity transformation. They take assets and usually repaid on short know and use these deposits to cater credit facilities to borrower for long period. In simple banks need liquidity to bear upon the depositor beg or with drawls, to settle whole sale commitment, to provide specie when borrowers draw on committed credit facilities. Under stress characterize maturity transformation is kinda crucial. Because in crisis it is difficult to raise liquidity from different sources. ( pecuniary supervision commission, 2005). This mean banks need to manage the liquidity only if from the preceding(prenominal) point of view banks can manage liquidity to make believe short term loans because banks borrow for short term tho this is not so easy.REASONS FOR MISMATCHING MATURITIES IN BANKS.Hendrik explained if the banks go for liquidity preference they will yield the short term loans but on the other hand borrowers demand long term loans because they want steady source of debt capital. (Hendrik, 2006). In the uniform paper Hendrik argued that Economic theory postulate s that financial institutions are exposed to a significant interest rate risk which is largely due to their fitting in maturity transformation. Banks set loans on the basis of some standards.Borrowers with low credit ranges bank gives them short term loans and borrowers having high credit place bank gives long term loan. (Douglas, 1991). So credit rating of borrower is quite considered in maturity transformation.Some time attitude of the managers who are in decision making is really matter in maturity transformation. This phenomena regarding risk is explained by James. He said the paper of risk is embedded, of course, the larger idea of the choice as affected by the judge return of an alternative. well-nigh all the theories of the choices assume that decision maker prefer larger expected returns to smaller one provided the other entire factors constant (risk). (Lindley, 1971).In widely distributed they also assume that decision maker prefer smaller risk to larger one, provide d other factors (expected value) are constant. (Arrow, 1965). Thus the expected value is presume to be positively associated, and risk is assumed to be negatively associated with the attraction of an alternative. (James, 1987). So above argument shows manager risk taking or risk seeking attitude can effect maturity transformation decision.In normal practice during maturity transformation banks prefer high interest or high profit. They mismatch their liabilities and assets means borrow for short term and lend for long term. This practice leads to liquidity risk. This practice of mismatching of assets and liabilities in balance sheets of banks is continued since many years and is the main reason of the liquidity crisis. This mismatching of liabilities and assets has the significant part in East Asia crisis 1997-1998. Bank pays insufficient attention to maturity transformation because they prefer high risk and high return. This self interest demeanor leads to liquidity crisis. It is to reconfirm that liquidity crises can put across in the absence of bail out provisions and can essence simply from maturity mismatches that themselves reflect the outcome of self-interested optimising behaviour by commercial banks. (Rajan and Bird, 2001). Bank capital structure also influence on maturity transformation. Some bank have excess capital this mean their capital to asset ratio is good. So this thing also affects the lending behaviour of the bank. By considering their capital structure they take the risk and mismatch the maturities of assets and liabilities. (Gambacorta and Mistrulli, 2003).From the above paragraph the different views of the authors come in front regarding reasons for the mismatching of the maturities. Following important reasons have been indicated. Borrowers demand for the long term loan, credit rating of the borrowers, risk taking behaviour, high profitability and banks capital structure.MATURITY TRANSFORMATION STRATEGIES BY THE FINANCIAL INSTITUTIO NS.Most of investors prefer the loan having short maturity or terms. no the commercial banks have created the off-balance sheet vehicle that converted or shorten the maturities of the long term products. Investment banks now rely on overnight repo markets to pay their balance sheet. So the question is what these off- balance sheet vehicles are. Off balance sheet vehicles are the structured investment vehicle. This means invest in long term illiquid assets and issue short term maturity paper in the form of asset backed commercial paper which have an clean maturity of 90days and medium term notes which having the average maturity of one year. Asset backed commercial paper was very popular in 2006. The off-balance sheet vehicles strategy of investing in long assets and borrowing using short-term paper exposes them to financing liquidity risk, since the commercial paper market might suddenly dry up. To ensure funding liquidity, the sponsoring bank grants a credit line, or a so-call ed liquidity backstop.3 Thus, the banking system still bears the liquidity risk from the maturity transformation-like in the traditional banking model of banks, in which commercial banks take on short-term deposits and invest in long-term projects. (Brunnermeier, 2008). While transforming the maturities the banks or financial institutions has to see the concern of the investors. Investors are concerned with return which they can obtain on short notice. Because they are uncertain about the need of the funds. So the activities of the bank to provide the liquid investment opportunity. Banks do this through two channels. First bank deposits offer an option to obtain funds on short notice at lower opportunity cost as compare to market. (James, 1987). pregnant OF LIQUIDITY W.R.T MATURITY TRANSFORMATION.Above views of the authors shows that how important is the management of liquidity in banks. No doubt it is important in banking sector because of different reasons but this not means that other sectors not face liquidity risk. wholly sectors combine to make economy and failure of one sector will affect overall economy of country. Holmstrom has explained in his article that management of liquidity for both real and financial sector is important. If both sector will manage their liquidity need, will be better able to run their operations efficiently and effectively without facing liquidity shortages. (Holmstrom, 2000). Liquidity risk management is important because liquidity shortfall affect the whole system and effect the overall economy. (Basel direction on Banking Supervision, 2008).CONCLUSION.We have discussed the liquidity which means the ease that the financial assets can be converted into cash. Liquidity is very important and mismanagement of the liquidity can lead to bankruptcy. Banks can be insolvent because of the liquidity mismanagement. This is the reason that capital adequacy ratio has the great concern for the regulatory bodies. Basel committee is work ing since 1988 to overcome the issue of capital adequacy. Because the stability of the financial institution is the concern of overall economy. In banks how they air their maturities means assets and liabilities in balance sheet of banks so that to avoid liquidity risk. Because the reason for the financial crisis in past this maturity mismatching structure of the banks. They finance long term loans with short term borrowings and when the time come to fulfil their commitments they are unable to generate liquidity. Why these institutions go for this mismatching structure because there are different reasons borrowers demand for the long term loan, credit rating of the borrowers, risk taking behaviour, high profitability and banks capital structure. So the financial institutions must have the proper strategies regarding liquidity.BIBLOGRAPHY.Tobias Adrian and hyun song shin. (2008). Liquidity and financial contagion. Financial stability review-special issue of liquidity. No.11. Feb. 20 08.Charles Good hart. (2008). liquidity risk management. Financial stability review-special issue of liquidity. No.11. Feb. 2008.Markus K. Brunnermeier. (2008). Deciphering the 2007-08 Liquidity and Credit CrunchNil Gunsel. (2010). The deteminants of the bank failure in north cyprus. Journal of the risk finance, vol 11, NO . 1.Douglas W. Diamond and Raghuram G. Rajan. (2005) Liquidity Shortages and Banking Crises. The Journal of Finance, Vol. 60, No. 2 (Apr., 2005), pp. 615-647Walter A. Morton. (1939). Liquidity and Solvency. The American Economic Review, Vol. 29, No. 2 (Jun., 1939), pp. 272-285Hendrik Schulz, Stephen Simon, Marko Wilkins. (2006). Maturity Transformation Strategies and Interest Rate Risk of Financial Institutions Evidence from the German Market. Oct 2006.Ramkishen S. Rajan and Graham Bird. (2001). Banks, Maturity Mismatches and Liquidity Crises A truthful ModelLeonardo Gambacorta and Paolo Emilio Mistrulli. (2003). Does bank capital affect lending bearing?Bengt Ho lmstrom and Jean Tirole, 2000). Liquidity risk management. Journal of money, credit and banking, Vol. 32, No. 3 (Aug., 2000).Financial supervision commission, 31 January 2005. A Consultative Paper on Liquidity Risk Management Policies for Banks.Douglas W. Diamond. (1991). Debt Maturity Structure and Liquidity Risk. The quarterly Journal of Economics, Vol. 106, No. 3 (Aug., 1991), pp. 709-737James G. March and Zur Shapira, (1987). Managerial Perspectives on Risk and Risk Taking Management Science, Vol. 33, No. 11 (Nov., 1987), pp. 1404-1418Basel Committee on Banking Supervision, June 2008. Principles for sound liquidity risk management and supervision.Paul Sharma, 8 October 2004. Financial services authority speech.