Explain any four instruments that the central bank can use to regulate the financial system?

Q: What problems will the federal reserve face if people are unemployed and facing inflation?

A: Inflation is defined as the rise in the average price level of commodities and services in the…

Q: Overnight loans issued by the Federal Reserve to commercial banks are known as   A. Negotiable…

A: The overnight loans issued by the Federal Reserve to commercial banks are known as Federal Funds.…

Q: Your childhood friend believes Commercial banks no longer have any relevance in the current economic…

A: Commercial banks are the financial institutions that provide various banking services to people and…

Q: The sale of government bonds by the Federal Reserve Banks to commercial banks will ______.

A: By selling government bonds within the open market, the Federal Reserve System banks reduce full…

Q: In what respects is the central bank like a private banking institution and it what respects is it…

A: The central bank is an apex banking institution in a country. It is responsible to regulate the…

Q: How important is the Central Bank in the financial market?

A: The economies around the world work with the help of various institutions, may it be domestic…

Q: Please answer the following question: When the federal reserve lowers the reserve requirement, the…

A: Money supply refers to the amount of money available in an economy at a particular point in time.…

Q: 5. Financial institutions in the United States Which of the following are financial intermediaries?…

A: Financial Intermediaries are the institutions that act as mediators connecting lenders with the…

Q: . The independence of central banks is desirable, discuss the advantages and disadvantages of this…

A: Central bank is an apex body for any country. It is the one which controls over all the monetary…

Q: Briefly explain how banks can optimize their position through managing their use of commodities?

A: The banking sector is undergoing a significant transformation, fueled by new competition brought on…

Q: What are the primary goals of a central bank ? Why it is important for the bank to attain these goal…

A: The central bank is typically in charge of monetary policy and member bank regulation in modern…

Q: Do you think that the Fed should have bailed out large financial institutions during the credit…

A: The global financial crisis of 2008 was the largest crisis the world has weathered since the great…

Q: How do monetary financial institutions create liquidity, pool risk, lower the cost of borrowing, and…

A: The monetary financial institutions such as banks, insurance companies, mutual funds, non-banking…

Q: Explain what a debt crisis is and how it can trigger a banking crisis

A: For the production and consumption of goods, economic agents have derived a barter system. In the…

Q: how did the federal reserve let the banking system collapse in the 1930s great depression? Did the…

A:

Q: Explain why you think the Federal Reserve Bank tracks M1 and M2.

A: The money supply circulation in the economy depends upon the different parameters and concepts of…

Q: Is an economy both social and a financial system?

A: An economic system, also known as an economic order, is a method of producing, allocating resources,…

Q: what it means for banks to engage in maturity transformation and what are the risks associated with…

A: A type of transformation whereby a bank or any similar institutions takes advantage of the upward…

Q: ancial institutio

A: At the large financial institutions,compensation practices were considered to be a key contributing…

Q: a) Discuss the benefits and costs of pi ownership of central banks by giving examples from central…

A: A public bank is one that is owned by the government, a municipality, or other government…

Q: Who was chair of the federal reserve system during the financial crisis of 2008?

A: A financial crisis is a situation when there is a significant decrease in the value of financial…

Q: List any six categories of factors that could cause a financial crisis.

A: Since , financial crisis in a economy is a situation where  the value of the assets fall drastically…

Q: l in the blanksS using the NUMBER that corresponds to the correct word or phrase in the word bank…

A: The Federal Reserve often referred to as the Fed is the Central Bank (13) of the United States. The…

Q: What did the Federal Deposit Insurance Corporation and the Securities and Exchange Commission have…

A: The Securities and Exchange Commission (SEC) is an element of financial policy in U.S. , which…

Q: Differentiate between primary and secondary financial markets.

A: The financial market can be described as a marketplace for buying and selling financial securities…

Q: How Commercial banks manage their liquidity to satisfy reserve requirement without bearing huge…

A: Commercial banks are a financial institution that provides the banking services such as deposits,…

Q: many people keep their savings in the piggy banks, it does not help the financial system to function…

A: Banks and other financial institutions give amazing chances to saving and contributing by people,…

Q: What would happen if the us treasury department stopped issuing new securities?

A: Although rare, especially in the case of US Treasury securities, such a situation might have…

Q: What are the characteristics of the Central Bank.

A: Central Bank is an apex institute under which all the commercial banks are registered. Central Bank…

Q: How do changes in interest rates impact the lending behavior of financial institutions?

A: Interest rates represent the cost of borrowing or the return on savings. They play a crucial role in…

Q: Which of the following is not a central bank?   a.  The Bank of England     b.  The Bank of Japan…

A: A central bank is a financial institution that provides banking services to the government and…

Q: Explain the answer and/or show any calculation to prove the answer. What is the mission of a…

A: The banking sector is an industry and a sector of the economy dedicated to holding and investing…

Q: What factors have led to the dominance of the banks? Prove explanations in detail with an example

A: Banks are the authorities that enable flow of money by lending and depositing money of the people.

Q: what are factors that contribute to a financial crisis.

A: Financial crisis is the situation in which the economy witnesses a huge decline in the value of…

Q: List the main function of investment banks in the financial system?

A: Investment banks are the banks that help startup companies to launch. It acts as an intermediary…

Q: Great Depression

A: The primary activity of fed is to maintain a required reserve fund from all the banks. In the case…