To think critically about: The economic figures that indicate the performance of the federal bank and the role Mr. B, previous head of federal bank in the recent banking crises.
Introduction:
Federal Reserve Bank is the central bank of the country; Federal bank is responsible for making
Financial crisis is a state where the value of the financial assets decline to a large extent. The banks fail and the markets crash in this situation.
Explanation of Solution
Given information:
Federal Reserve Bank is the central bank of the country; Federal bank is responsible for making monetary policies therefore central banks play a vital role in the financial crises of a country.
Economic figures that indicate the performance of the central bank are as follows:
- Currency exchange rates, the rise in the value of a currency of a country
Economic growth of the country.- Net interest margin, which shows the efficiency of investments of the funds.
- Gold stock kept with the bank.
- Remittances to the country’s treasury
- Size of the bank’s
balance sheet . - Net income of the bank.
- Inflation rate of a country is direct affected from the policies of the federal bank.
- Price stability.
Unemployment rate, various policies adopted by the federal bank has got an impact on the unemployment rate therefore; unemployment rate in a country shows the effectiveness of the federal bank.
Role played by the Federal bank in the recent banking crises is mentioned as follows:
- Federal bank kept low borrowing rates for promotion of housing loans.
- When the values of the mortgaged properties declined central bank should have issued warnings.
- The above facts are considered as the role played by the federal in the 2008-2009 financial crises.
Thus, inflation rate and economic growth of the country shows the effectiveness of operations of the central bank and the lowering of interest rates and failure to issue warnings are considered as the accusations against the central bank for the financial crises.
Want to see more full solutions like this?
Chapter 20 Solutions
UNDERSTANDING BUSINESS-W/ACCESS>CUSTOM<
- https://web.p.ebscohost.com/bsi/pdfviewer/pdfviewer?vid=1&sid=893c3f08-cf0a-4524-bfec-e7d61e03aa2a%40redis Base on the link above i need help answering the following for week 2 How would I consider myself an engaged employee? would the questions make you think of anything that can be done your healthcare organization to increase employee engagement and performance? Would I add any questions to the list? How can managers in the health care industry utilize these questions?arrow_forwardIf a test were scored using a criterion-referenced approach, which of the following would most correctly explain a student's low score to the student's caregivers? In relation to the standards and learning objectives covered on this test, your child is not yet proficient. Compared to other children in this class and across the state, your child performed less than average. Your child did better on this test than the previous one.arrow_forwardDesign a normalized order management database with the requirements provided below. Each record should have at least one primary key field specified. After identifying the records and their corresponding fields, draw an entity-relationship (ER) diagram to illustrate the relationships between entities and attributes.arrow_forward
- TRUE or FALSE: It is not worth the loss of instructional time to have students process and act upon their feedback; students generally don't care about the feedback, anyway.arrow_forwardWhich of the following grading practices are considered to be inaccurate, ineffective, and/or harmful for student learning? (Select ALL that apply.) Using the 100-point grading scale Grading everything a student completes (including homework and practice) to encourage compliance Giving or reducing points for behavioral work habits (e.g., being on time for class, participation, submitting assignments on time) Boosting a student's grade because they tried really hard, even though they haven't yet met the learning goals Not allowing a reassessment because the student should have learned it the first timearrow_forwardWhat is the single most important thing you are expected to do when administering a standardized test? Teach students test-taking skills and strategies. Follow the proctor directions exactly. Remind students to get a good rest and eat breakfast the day of the test.arrow_forward
- Which form of test score interpretation is most likely taking place in the following situation? Samantha is above average. criterion-referenced norm-referencedarrow_forwardTRUE or FALSE: Giving students feedback that is tied to their sense of identity (e.g., You're so smart!) is likely to increase their motivation and subsequent performance. True Falsearrow_forwarddo fastarrow_forward
- Steam enters a nozzle at 400°C and 800 kPa with a velocity of 10 m/s and leaves at 375°C and 400 kPa while losing heat at a rate of 23 kW. For an inlet area of 800 cm2, determine the velocity and the volume flow rate of the steam at the nozzle exit. Use steam tables. 400°C 800 kPa 10 m/s Steam 375°C 400 kPa The velocity of the steam at the nozzle exit is m/s. S The volume flow rate of the steam at the nozzle exit is m³/s.arrow_forwardeferences Mailings -A E Review Paragraph View Assignment new - Microsoft Word AaBbCcDr AaBbCcDr AaBbC AaBbCc AaB ABbCct ABCD AaBbCcD AnBbCcDc AaBbCcD, AaBbCcD AaBbCcDC GABECCEL AABBCODE AA Find- O X Replace Normal No Spac... Heading 1 Heading 2 Title: Subtitle Subtle Em... Emphasis Intense E... Strong. Quote Intense Q... Subtle Ref... Intense R... Change Styles- Select Create Sign PDF Styles Editing WPS PDF INFOLINK UNIVERSITY COLLEGE HAWASSA CAMPUS INFOLINK UNIVERSITY COLLEGE HAWASSA CAMPUS CIVIC & MORAL STUDIES INDIVIDUAL ASSIGNMENT FOR REGULAR BUMA DEPARTMENT STUDENTS 20% 1. Write & discuss five components of IR? 5% 2. What are the principles & objectives of Ethiopia foreign policy? 5% 3. Write & discuss major contemporary global issues? 5% 4. What are the challenges of globalization? 5% 150% 5:16 PMarrow_forwardNot use ai pleasearrow_forward
- Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill EducationManagement (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSONSpreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
- Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSONBusiness Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSONFundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON