The price of a bond O increases as interest rates in the financial sector increase O decreases as the price of precious commodities increase increases as interest rates in the financial sector decrease
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![The price of a bond
O increases as interest rates in the financial sector increase
O decreases as the price of precious commodities increase
increases as interest rates in the financial sector decrease
decrescos ar stock market values incrosco](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa5edd102-7202-4862-a172-51e6c877c3f5%2F2a857ead-8410-48cd-a60b-e9c4192ff579%2Frt0r0jh_processed.jpeg&w=3840&q=75)
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- Suppose you are in charge of the financial departmentof your company and you have to decide whether toborrow short or long term. Checking the news, yourealize that the government is about to engage in amajor infrastructure plan in the near future. Predictwhat will happen to interest rates. Will you advise borrowing short or long term?What is a lender of last resort? O An institution, typically a financial institution, that can provide short term liquidity during a financial crisis. A firm that needs to borrow during crisis A group of lenders that need ot be paid immediately. A bank that has offices in resorts.on a supply and demand diagram for funds, show what happens to interest rates and explain what happens to savings and investment when household decreases their consumption
- The supply of bonds comes from Select one: O A. Savers OB. Borrowers OC. Financial Intermediaries O D. Householdsmoodle.unizwa.edu.om/mod/quiz/attempt.p If there is a surplus of a commodity, then, the price will rise 9 J5- شير مجلب عليه بول إخكر واحدان الدرجة من 0.50 علم هذا السؤال ths O Financial intermediaries are financial institutions through which savers can directly provide funds to borrowers 10 J- J alo daa o إختر واحدا 0.50 ga da l علم هذا السؤال thi O .Gold is an example of Fiat money 11 J عبر مجاب عليه بوز إختر واحدان الدرجة من 0.50 علم هذا السؤال TOSHIBA B/O 2111 & 6 7 7 V 50 8 A 99 FJ GY VI BYDraw the demandand supply curves forthe bond market, andidentify the equilibrium interest rate.
- In the financial market, if the quantity of funds demanded is greater than the quantity of funds supplied then we can expect interest rates to fall over time. O True O FalseSuppose that Intel is considering building a new chip-making factory a. Assuming that Intel needs to borrow money in the bond market, why would an increase in interest rates affect Intel’s decision about whether to build the factory? b. If Intel has enough of its own funds to finance the new factory without borrowing, would an increase in interest rates still affect Intel’s decision about whether to build the factory? Explain!How are the interest rates for the lending and borrowing markets determined? O by altering the discount rate Othrough open market operations OU.S. Treasury Department Board policy by the forces of supply and demand
- Paysl Question 20 Which one of the following is an incorrect statement about US financial system? O Saving and investment are important determinants of long run growth in GDP and living standards. O The primary advantage of mutual funds is that they allow people with small amounts of money to diversity their holdings O Financial Intermediaries are financial institutions through which savers can directly provide funds to borrowers O The institutions that make up this system-the bond market, the stock market, banks, and mutual funds-- have the role of coordinating the economy's saving and investment. Question 21 Which one of the folawing is an incorrect statement about the history of The US Central Bank? O In 1836. President Andrew Jackson closed the Second Bank of the United States (SBUS) because of his deep distrust of financial elites. It led to a period of rapid monetary expansion and inflation, which was soon folowed by financial panics in 1837 and 1839 and a severe recession O The…Which i s an ordinary asset? *Assuming an economy have only two commercial banks in it banking system, Classic Bank and Prudent Bank. The following shows the balance sheet of the two banks as at 2019.Classic BankBalance sheet as at December, 2019GHSm GHSmAssets: Liabilities & Equity:Reserves 1,000 Deposits 3,000Securities 2,000 Equity 7,000Loans & Advances 1,000Property, Plant and Equipment 6,000 .10,000 10,000 Prudent BankBalance sheet as at December, 2019GHSm GHSmAssets: Liabilities & Equity:Reserves 600 Deposits 2,500Securities 1,500 Equity 4,400Loans & Advances 800Property, Plant and Equipment 4,000 .6,900 6,900Assume a required reserve ratio of 10%.(a) What is the amount of excess reserves in this commercial banking system? (b)What is the maximum amount that the money supply can be expanded? What would be the effect of a fall in reserve ratio to 5%, on the maximum amount that the money supply can be expanded? (c) Determine the stock of broad money supply assuming the non-bank public holds…
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