1)What are the benefits of bank capital? Are there any costs associated with holding a large amount of capital or raising new capital? 2)What is the role of overnight loan market in sustaining the growth of an economy 3)What are the costs and benefits of a too-big-to-fail policy? 4)Off-balance sheet activities can be dealt with by using simple bank capital requirements. True/False. Explain 5)If reserve requirements were eliminated in the future, as some economists advocate, what effects would this have on the size of money market mutual funds? 6)Since there are many more banks in the US than in Canada, the American banking system is more competitive than the Canadian system. True/False. Explain 7)Under the provisions of the Dodd-Frank Act of 2010, systemically important financial institutions (SIFls) are required to maintain capital reserves (potentially up to 8% of the fund's assets). Explain the impact on mutual funds' performance if they are designated as SIFls. 8)A central bank with a dual mandate will achieve lower unemployment in the long run than a central bank with a hierarchical mandate in which price stability takes precedence." Is this statement true, false, or uncertain? 9)People in general welcome actions that maintain effective communication and that promote transparency, and (n partcular when they involve public or quasi-public institutions. Can you think of a reason why a more transparent communication strategy might be detrimental to a central bank's objectives?
1)What are the benefits of bank capital? Are there any costs associated with holding a large amount of capital or raising new capital?
2)What is the role of overnight loan market in sustaining the growth of an economy
3)What are the costs and benefits of a too-big-to-fail policy?
4)Off-
5)If reserve requirements were eliminated in the future, as some economists advocate, what effects would this have on the size of
6)Since there are many more banks in the US than in Canada, the American banking system is more competitive than the Canadian system. True/False. Explain
7)Under the provisions of the Dodd-Frank Act of 2010, systemically important financial institutions (SIFls) are required to maintain capital reserves (potentially up to 8% of the fund's assets). Explain the impact on mutual funds' performance if they are designated as SIFls.
8)A central bank with a dual mandate will achieve lower
9)People in general welcome actions that maintain effective communication and that promote transparency, and (n partcular when they involve public or quasi-public institutions. Can you think of a reason why a more transparent communication strategy might be detrimental to a central bank's objectives?
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