
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 ACCESS CARD
- Please original work What does “influencing” mean to you? Talk about how a leader can effectively influence and include all employees in the balances scorecard development process. What is one specific way your current supervisor or a previous supervisor has included you in high-level strategic discussions? What were the results? Please cite in text references and add weblinksarrow_forwardDubai man-made islands should reflect your analysis, synthesis, and evaluation of the case.arrow_forwardDubai man-made island projects Should the risk events have been identified in the beginning by practicing sound quality control? Explain why or why not with details.arrow_forward
- Explain why a Dubai man-made island project manager, or any stakeholder, should include uncertainty outcomes in their risk management practices.arrow_forwardDubai man-made islands What would be your quality assurance recommendations for such projects in the future based on the project in this case?arrow_forwardWhat quality management components should be considered for a project such as the Dubai man-made islands? Explain your positionarrow_forward
- What are your risk management, quality management, contingency planning, and uncertainty recommendations for any future Dubai man-made island projects?arrow_forwardWhat are some contingency plans or actions that could have been taken by the Dubai man-made islands project managers to limit the impact of this possible risk event and other such related events the projects faced?arrow_forwardDo you feel the past Dubai man-made island project managers follow due diligence regarding the creation of a risk management plan, assess all major risks, and develop appropriate risk responses and a plan for monitoring risks? Explain your rationale and remember, you are basing your answers solely on the results of earlier efforts. You can do research but it isn't necessary. You are using your understanding of risk management principles to provide your perspective as a project manager professional.arrow_forward
- What project risk management processes do you think will add value to any future Dubai man-made island projects?arrow_forwardWhat are the problems/challenges faced by a CEO like Yahoo, being unable to retain usage (customer base) and overall value due to competition in the internet search engine field and the best way to implement change to overcome the company's deficiencies?arrow_forwardCan you guys help me on this? Thank you! Here's the authentic insight for the article written by my classmate. Please give a little comment about this post. Thank you!arrow_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





