Explain why you think that maintaining a well functioning financial system is important and suggest some policies the government could adopt to help improve long-run economic growth through this channe

Q: Name and explain on the example of your interest one factor that caused the shift of the supply for…

A: Introduction Supply curve in loanable market shows the behavior of savers. When interest rate are…

Q: It explains what is the relationship of the financial market with the economic growth of a country.

A: The well developed and swimmingly operated money market plays a significant necessary role within…

Q: n an unhindered free market, the supply and demand for loanable funds and, hence, the going rate of…

A: The supply and demand of loanable funds refers to the quantity of funds available for lending and…

Q: Draw a graph of the supply and demand of loanable funds. Then, show how the interest rate will be…

A: The loanable funds market is used to determine the equilibrium rate of interest and equilibrium…

Q: Assume that initially a country has a loanable funds supply curve of S₁. Now, imagine that interest…

A: Demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.  Equilibrium…

Q: what features of financial intermediation make it important for economic growth.

A: A lot of research has been done on the role of money as a mediator in economic progress. Financial…

Q: Find a quote below and illustrate the effect of these phenomena on the world market for loanable…

A: The loanable funds market refers to the market where borrowers and lenders come together to exchange…

Q: Analyse the link between finance and economic growth.

A: Economic Growth Economic growth basically refers to an increase in the value of a country's goods…

Q: Identify any two joint venture companies from Oman and Write about the history (Company profile),…

A: There are many extraordinary motives why a commercial enterprise may also are looking for to go into…

Q: Q2 /Discuss why are international financial institutions important for growth economy around the…

A: When talking about international financial institutions, they include international monetary fund,…

Q: Draw a circular flow model with the government, financial institutions, and international market…

A: The circular flow of income is defined as that model of the economy in which the major exchanges are…

Q: What happens to the quantity of loanable funds supplied when the interest rate rises? Explain why…

A: Supply of Loanable Fund: The supply of loanable fund encompasses the savings and the credit made by…

Q: Why is well-functioning financial system is a critical ingredient in achieving long-run growth? It…

A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to…

Q: Distinguish between saving and investment.

A: An important debate in macroeconomics relates to the relationship between saving and investment.…

Q: a. If the Japanese decided they no longer wanted to buy US assets, what would happen in the US…

A: Over the past decade, some of the Japanese savings have been used to finance US investment. That is,…

Q: what do you mean by financial inclusion, market-friendly environment, and fiscal incentive system in…

A: The Philippine economy is in excellent shape. It is ranked 37th in the world in terms of GDP. After…

Q: If there is a fall in the real interest rate, how does the quantity of loanable funds supplied…

A: The market in which borrowers and lenders meet is the loanable funds market.

Q: Profitt-seeking intermediaries widely exist in product, labor, financial and other markets. These…

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Q: Explain in detail the role of financial markets in Sultanate of Oman in      promoting the economic…

A: Oman's commercial banks have recently turned to foreign currency lending in the form of the euro…

Q: What is the importance of credit in the improvement of the Philippine Economy?

A: Credit is described as borrowing money with the intention of repaying it at a later date. Credit…

Q: explain the  three way of how a financial crisis could impact economic growth.

A: A financial crisis is defined as a situation under which the financial assets loose their value.…

Q: Discuss why financial markets are important to a healthy economy and how they contribute to economic…

A: A business is a part of an economic system that has 2 main sectors- households that saves funds and…

Q: Can you tell me what the top 50 companies are from market capitalisation in Australia on the date 28…

A: An economy is a system wherein people produce, distribute, and devour items and offerings. It is a…

Q: Critically discuss five means through which financial Institutions in Ghana can promote economic…

A: The following are the 5 means through which financial Institutions in Ghana can promote Economic…

Q: Explain the role of financial sector in promoting economic growth of country.

A: financial sector: - it represents the firms and institutions which provide the financial services in…

Q: For the following scenario, draw a correctly labeled loanable funds graph for each nation and…

A: A loanable fund market is a financial market where the savers come as the suppliers of loanable fand…

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.