Compare and contrast the federal funds rate, the discount rate, and the prime rate

Q: In the PowerPoint presentation, what did we learn about "shadow banking?"   Multiple Choice   This…

A: The objective of the question is to understand the concept of 'shadow banking' as presented in a…

Q: What is the purpose of using the Internal Revenue Service (IRS)?

A: Internal revenue service is a government legal agency of the United States that is responsible for…

Q: Why would a Monetarist advocate a balanced budget amendment to the Constitution?

A: The monetarist school of economic thought is an important one amongst the different schools of…

Q: ancial institutio

A: At the large financial institutions,compensation practices were considered to be a key contributing…

Q: Why does "adverse selection" exists in the case when a bank makes loans to individuals? Why does…

A: In economics the moral hazard and adverse selection refers to describe situations where one party is…

Q: What is the quantitative easing used by the Federal Reserve during recessions. Use examples please!

A: The monetary policies are those policies which are enacted by the central bank of a country to…

Q: Key institutional players in the fight against money laundering include:   a. World Bank, United…

A: The process of money laundering is the concealment of the origin of huge stock of money earned from…

Q: Which type of security has interest payments that are generally exempt from federal income taxes?…

A: T-bonds or Treasury bonds are fixed-rate government debt security by the U.S. with maturity mostly…

Q: How do information asymmetries affect financing decisions?

A: Answer - Asymmetric Information - This is th situation where one individual, firm or even country…

Q: discuss four factors that can cause financial intermediation to fail.

A: The procedure of transferring money from economic actors with excess funds to those who want to use…

Q: How do changes in interest rates impact the lending behavior of financial institutions?

A: Interest rates represent the cost of borrowing or the return on savings. They play a crucial role in…

Q: The Federal Reserve was first established in 1915. True False

A: If we talk in simple terms then the central bank of the United States that is also called the…

Q: Which is a reason for why private banks tend not to use the discount window?

A: The federal rate is the rate at which commercial banks borrow from each other whereas a discount…

Q: The government, business and household sectors are all suppliers of funds into the financial system.…

A: A financial system is a platform for transactions related to funds between financial market…

Q: Would the interest rate increase be more likely to hurt or help the financial institution’s…

A: Interest rates affect the profitability of financial institutions. The financial institutions…

Q: Question: Explain Neutrality And Non-Neutrality Of Money

A: Neutrality and non-neutrality of cash are concepts that relate to the impact of adjustments in the…

Q: Why does stock market go down, when treasury yields go up?

A: This is a really important relationship and causal effect. The yield on bonds is generally used…

Q: Why some economists worry that there could be "moral hazard" risk after US government bailed out…

A: In economics the moral hazard refers to a situation where in one party engages in risky behavior…

Q: why does selling bonds by the Treasury to the financial market raise interest rates

A: The monetary policy is the policy of the central bank regarding the money supply and interest rate…