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- Write a short proposal on “Foreign Direct Investment, Financial Market Development and Economic GrowthWhich of the following aspects will be included in Macroeconomic policies? a. Government spending and borrowing O b. All of these O c. Taxes o d. Exchange rate determinants Clear my choiceDescribe the market for foreign investment.
- part-a: What is the difference between direct finance and indirect finance? part-b: What are the main institutions in the direct finance system of an economy? What are the main institutions that constitute the indirect finance system in a country? part-c: What are the sources of national saving in a closed economy? Does a government increasing taxes and / or social security transfers impact the amount of national savings in a closed economy? Why or why not? (Hint: Consider the savings identity for this question.) part-d: Where does the demand for loanable funds come from in a closed economy? How does a government adopting a policy of taxing investment from the private sector impact the demand for loanable funds? What happens to the equilibrium interest rate following this policy? Illustrate using the supply and demand in the market for loanable funds.2) explain the differences between the following two fundamental factors of finance in international processes -The international transfer of funds - Transfer pricesUse the Mundell-Fleming model with perfect capital mobility, for each economy, analyze why the effectiveness of monetary, fiscal, and trade policies depend on the exchange rate regime in place in a country.
- This subarea of finance is important for adapting to the global economy. Multiple Choice investments financial management international finance financial institutions and markets1. A. Identify and explain the functions of financial intermediation. B. Why does the lack of an efficient and effective system of financial intermediation act as an impediment to the economies in developing countries (comprehensive answer required)?FINANCE > CAPITAL MARKETS What is fiat standard or fiat money? Under the fiat standard or fiat money, which of the money is used by the Central Bank to stabilize the circulation of money in a country?
- Illustrate the flow of funds between primary investors and ultimate borrowers in a modern economy. Give examples of intermediary activityThe money market has a vital role in developing the different economies. Analyze the extent to which you agree with the statement with clarifying the participants in this market and how this market could significantly affect the economic growth.What is National Savings Certificate? A. Short-term U.S. government debt obligation B. A fixed - income investment scheme C. A financial product commonly sold by banks, thrift institutions, and credit unions D. An unsecured money market instrument
