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?

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?

What is the main rationale behind paying negative interest rates to banks for keeping their deposits at central banks in Sweden, Switzerland, and Japan?What could happen to these economies if banks decide to loan their excess reserves, but no good investment opportunities exist?

State THREE roles and TWO functions of any large financial institution in the commonwealth of Dominica and discuss THREE impacts that that intuition has on the economy the country . Any financial institution excluding the Central Bank.

In the absence of limits on the behavior of large intermediaries, how might the perception of institutions being "too-big-to-fail" lead to increased concentration in the banking industry? The safety net alleviates the too-big-to-fail problem, thus increasing concentration in the banking industry. The safety net creates moral hazard problems for big banks by encouraging extremely risky behavior. This puts small banks at a competitive disadvantage, driving them out of the market and leading to an increase in concentration. The safety net encourages larger banks to split into several smaller institutions, thus increasing the concentration in the banking industry. The safety net encourages more banks to enter the market, thus increasing concentration in the industry.

Given the current reserves, calculate the maximum value of additional loans that the Bank of Uchenna can make.