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: Why did President Obama signed Dodd-Frank Wall Street Reform and Consumer Protection Act into law?

A: The Dodd Frank Wall Street Reform and Consumer Protection Act could be a law that regulates money…

Q: discuss Financial Action Task Force (FATF) & Pakistan in detail.

A: FAFTA is financial Action task force.

Q: Explain what a debt crisis is and how it can trigger a banking crisis

A: For the production and consumption of goods, economic agents have derived a barter system. In the…

Q: what is the purpose of the national credit act

A: In a market, various acts are implements to protect the interest of the market participants. The…

Q: In Vietnam now are striving for reaching more clients and customers by eliminating transaction fees,…

A: There are many risks that a financial institution may pose, like transaction risks, credit risks,…

Q: identify the five areas under Basel III and write a short notes on them

A: Concept Basel III is the third edition of the Basel Accord, which establishes worldwide criteria for…

Q: ancial institutio

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

Q: Talk about the following BRIEFLY   Mortgage back securities prime rate libor rate

A: What Is Mortgage-Backed Security (MBS)?  A mortgage-backed security (MBS) is a speculation like a…

Q: What is the main purpose of financial regulation? What kind of instruments may a government use to…

A: Financial Regulation : Financial Regulation can be defined as a form of regulation, laws or rules…

Q: What is financial repression and why does it exist?

A: Government economic policy refers to the methods used by a government to influence the economy. The…

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: Differentiate between federal fund and repurchase agreement.

A: A list of Bank Sources of Funds are given below: Transaction Deposits Time Deposits Repurchase…

Q: How do information asymmetries affect financing decisions?

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

Q: Identify whether it is true or false BANK RATE IS A QUALITATIVE METHOD OF THE CREDIT CONTROL IN THE…

A: According to the given question Option is FALSE Reason BANK RATE IS NOT AN QUALITATIVE METHOD OF THE…

Q: What would happen if the us treasury department stopped issuing new securities?

A: Although rare, especially in the case of US Treasury securities, such a situation might have…

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: What is financial repression and why does it exist?

A: Financial Repression refers to the measures through which government borrows funds from private…

Q: Write a one-page summary explaining how adverse selection and moral hazard contributed to the Great…

A: Adverse selection happens in case of information asymmetry or when one of the two parties has more…

Q: Explain banking vs problem posers. Give some examples

A: Banking is merely putting material into a student's brain without any discussion or engagement with…

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: Comment on the policies of the FED and the government during the Great Recession period. How do they…

A: The term the great Recession may be a play on the term the great Depression. The great Recession…

Q: Banks will go to central bank for loans if federal funds rate is lower than the discount rate. O…

A: The banks sometimes fall short of deposits to fulfill their withdrawal needs or other credit…

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: what do you think are the main reasons that led to the subprime crisis of 2007/ 2008?

A: The 2007-08 financial crisis, known as the subprime mortgage crisis, was a significant outflow of…

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…

Q: How dose a bank plays a role in inverstment

A: A bank is a financial entity with the authority to accept deposits and provide loans. Retail banks,…