During its financial crisis of 2001, the Argentine government froze access to bank accounts for a year. Many banks subsequently went under, costing Argentine citizens their bank-based savings. The event was not a complete surprise. The Argentine government had a history of freezing bank accounts, such as during financial crises in 1982 and 1989. What affect, if any, do you think these freezes will have on the ability of Argentine banks to perform their financial intermediation functions in the future? Be sure to explain your answer.

What factors explain the rapid growth of internationalbanking?

Describe how an expansive open market operation is conducted by a central bank

Stephanie deposits $500,000 in Bank of America. Assuming that banks lend out everything that they are legally allowed to lend, assume the reserve requirement is 14%, and the interest rate is 2%. How much money is created by the banking system based on this deposit alone?

As part of its efforts to restore confidence in the banking and specialized deposit-taking sectors, the Bank of Ghana embarked on a clean-up exercise in August 2017 to resolve insolvent financial institutions whose continued existence were thought to pose risks to the interest of depositors. In 2019, the Bank of Ghana released a statement saying it had completed its clean-up exercise of the banking and specialized deposit-taking (SDI), and non-banking financial institutions (NBFI) sectors.As a student of Financial Markets and Institutions, provide reasons for or against the cleanup exercise embarked upon by the Central Bank.

How are cryptocurrencies popular nowadays (such as bitcoins) different from the currencies we used issued by central banks? Discuss briefly.

Assuming a reserve requirement of 20%, if the central bank of a country injects an additional $10,000 in reserves into the banking system, how much new money can the banking system create?

What is the primary role of a central bank in a country's banking system? a) Issuing credit cards b) Regulating and supervising banks c) Providing loans to individuals d) Facilitating international trade

What does liquidity mean? What are some less than 100% liquid monetary instruments?

Explain why the interest rate channel of the transmission of monetary policy works better if there is more competition in the financial market (Banking sector) of the economy ?