The central bank conducts an open market sale of securities at the same time a natural disaster negatively affects economic activity.

Q: Did Central Banks seem totally unprepared to deal with the pending economic fallout? Is the Central…

A: In an economy, the central bank is one of the authorities that can stabilize the market by…

Q: Advocate the benefits of using monetary policy to control the economy.

A: A change in the money supply is known as monetary policy. By keeping an eye on price changes and…

Q: Would you say central banks are more reactive than proactive?

A: Central bank is the supreme bank of the nation.

Q: How does asymmetric information affect the process of transferring resources from surplus to deficit…

A: Asymmetric information: - It is a condition where one party involved in an economic transaction has…

Q: Investment projects can be viewed as analogous to bank loans. True or false?

A: An investment project is a proposal that includes information on the expenditure of the planned…

Q: Lowering the taxes on income can help in expanding the activities in the financial market.  True or…

A: Tax in the compulsory payment made by the individual or institution to the government without…

Q: What are the functions of central bank in developed economies?

A: Developed countries are the one that is able to have sustained developement and produce output…

Q: explain what may be the short-term economic consequences of a decrease of the interest rate by the…

A: Macroeconomics is the branch of economics that studies how an economy functions as a whole.…

Q: Evaluate the effectiveness of using monetary policy to reduce the rate of inflation

A: The economics as a study is based upon the idea of scarcity, where the resources with the economies…

Q: concept of fiscal and monetary policy with own perceptive point of view

A: Economic policy is the set of measures and strategies implemented by governments or other governing…

Q: In the United States, the money supply. Multiple Choice World Bank is responsible for regulating the…

A: Fedral Reserve Bank is central monetary authority of United States which regulates and monitors…

Q: Should Central Banks be independent? Explain and discuss.

A: The question of whether central banks should be independent is a topic of ongoing debate in the…

Q: What are the financial markets? What are the parties of the capital market?Explain it.

A: For the smooth operation of a capitalistic system, entrepreneurs and businesses rely on finance that…

Q: From the impact of Financial market activities that sets of world Financial crisis in 2008, how…

A: Introduction  Economy and financial markets are intertwined and deeply connected. The economy refers…

Q: Fed

A: These are two different scenarios. However, both of them fall into the same category i.e., economy…

Q: b) Explain the type of monetary policy used by central banks to overcome global recession.

A: A critical job of central banks is to direct monetary policy to accomplish value soundness (low and…

Q: Pretend that a country is on the gold standard and an evil villain succeeds in destroying a…

A: The gold standard is a different form of monetary system in which the currencies as well as the…

Q: Explain how financial crises lead to a credit crunch and a recession

A: The financial crisis refers to the situation of failure of financial system of an economy due to any…

Q: Explain four factors which determine the effectiveness of monetary policy for emerging markets and…

A: The factors which affect the effectiveness of the monetary policy which would result in the…

Q: Central banks:

A: Central banks are the apex banks of nation which control the commercial banks existing in the…

Q: The two most important functions of central banks are to:   Question 12 options:   a)  execute…

A: Central bank is referred as bankers bank. It helps commercial banks and the financial system at the…

Q: Do the existence of SIFIs represent a threat to the economic stability of the country? Why or why…

A: A systemically important financial institution (SIFI) may be a bank, insurance, or alternative…

Q: Why aren't more resources being allocated to sufficient prudential oversight of the financial system…

A: Countries where there are more working women, quantity of workers is more.  People who are working…

Q: What is the relation between social economic and the financial crisis? What is the impact of…

A: Solution: Economics: It is the study of understanding different aspects of economy.  Economy: It is…

Q: Define the following concepts: Sticky Prices Expansion and contraction Inflation, Deflation and…

A: Sticky prices: it implies that the price remains constant despite the changes in the economy or that…

Q: There was a temporary increase in the price of oil. Why does an increase in price of oil pose a…

A: FED faces a trade-off i.e. dilemma of either lowering the inflation rate or increasing real GDP. FED…

Q: Which of the following is considered to be a relatively drastic tool of monetary policy? altering…

A: Discount rate or interest rate would be drastic tool because it would affect the aggregate demand to…

Q: Select and define in detail eight of the following economic terms: surplus intermediaries deficit…

A: Intermediaries:Intermediaries are entities or individuals that facilitate transactions between two…

Q: Which of the following would be an example of the government providing economic security?…

A: The objective of the question is to identify an example of how the government provides economic…

Q: A commercial bank is defined as a financial institution which performs the functions of accepting…

A: The circular flow of pay or roundabout stream is a model of the economy where the significant trades…

Q: Assume that the central bank buys securities from member banks using open-market operations. Which…

A: Central bank use the monetary policy to change the money supply in the economy. Open market…

Q: The main responsibility of a Central bank is: Fiscal but not monetary policy…

A: A central bank is basically a financial institution with exclusive authority over the production and…

Q: Can you further explain the role of central bank in an economy.

A: A financial institution known as a central bank is in charge of overseeing the monetary policy of a…

Q: Which of these is most likely an effect of a decrease in the prime lending rate by the Federal…

A: Answer- 2. The rate of inflation will increase.

Q: During financial crisis, BSP buys bonds in the commercial banks to increase money supply.  True…

A: BSP is used to describe the central bank of Philippines and it made various decision to deal with…

Q: Q8. Economic models like the. graphs or even mathematical equations that represent economic patterns…

A: Economic diagrams and charts are made in order to understand the relationships between different…

Q: How do financial markets help the economy? What are the key financial tools for the macroeconomy?

A: Macroeconomics is the study of aggregate of the economy. It was first derives by the economist…

Q: What explanations have Post-Keynesians forwarded for the comparative failure of Central Banks policy…

A: A financial crisis is an economic term. A financial crisis is a situation where there is a sharp…

Q: What are the goals of economic policy? Describe each briefly. What policy options does the…

A: goals of economic policy are -  1) higher growth and development  2) price stability that is check…

Q: In the financial market, what causes a movement along the demand curve? What causes a shift in the…

A: A Demand curve represents the relationship between the price and the quantity demanded. This is…

Q: The Central Bank buys federal government bonds through open market operations. The graph…

A: Aggregate demand refers to the total demand for commodities and services made by all the economic…

Q: What are the difficulties faced by many governments with regards to safeguard measures taken against…

A: Government and central banks control the financial and economic functioning of a particular economy.…

Q: The U.S. fiduciary monetary system :puts capital controls in place .is one where money is not…

A: The monetary system is governed by the government. It regulates how much currency is printed. It…

Financial Institutions and Federal Bank

The word financial institution is a kind of business organization that deals with the financial activities of a nation. These activities include accepting deposits, making payments, granting loans and advances, transferring funds, holding shares, providing credits, purchasing and selling foreign exchanges, investments in shares, futures commodities, and many more.