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

Q: Discuss with examples about federal reserve system and explain how bank's balance sheets are formed?

A: The FRS System is that the financial organization of Country. And is answerable for the nation's…

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: Describe the difference between financial markets and financial intermediaries? How can your funds…

A: Monetary business sectors and Financial go-betweens are two channels through which the monetary…

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: . 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: 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…

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Q: In Vietnam now are striving for reaching more clients and customers by eliminating transaction fees,…

A: There are many risks that a financial institution may pose, like transaction risks, credit risks,…

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: Which Government/non-Government institutions are involved in regulating the financial system of…

A: Pakistan’s financial system comprises banks, Microfinance banks(MFBs), NBFCs, Development Finance…

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: What is the main purpose of financial regulation? What kind of instruments may a government use to…

A: Financial Regulation : Financial Regulation can be defined as a form of regulation, laws or rules…

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: The inadequacy of money supply circulating or available in the financial system makes the trading of…

A: International trade agreements govern the exchange of goods and services between two or more…

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: Should banks be more focused on traditional banking, or should banks be able to provide…

A: Financial institutions are the institution that provides the financial service services. It includes…

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: Why is it so important to an economy to have fully developed financial markets?

A: Financial markets are those markets in which creation and trading of financial assets take place .…

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: Explain what is the function of the following components in a country's financial system.…

A: A system that in turn allows fund exchange between market participants including investors, lenders,…

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: 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: Can the banks make easy profits because the money multiplies? How? Is it fair and efficient? Is the…

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Q: Explain why the existence of financial institutions can allocate financial resources better!

A: Good financial sectors mean banks and financial institutions have a major role to play in the health…

Q: What are the different Financial Intermediaries and explain how they carry out the objectives of the…

A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to…

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: Great Depression

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

Q: Explain how a bank could optimise its position through managing its use of different financial…

A: Below given how bank could optimise its position through managing its use of different financial…

Q: Discuss factors that determine the demand and supply of money in the financial system

A: A financial system can be considered on a business, provincial, or international levels, making it…

Q: What is the effect of money laundering in the economy? Explain your answer.

A: Money laundering refers to the illegal process of making large amounts of money, usually generated…

Q: Please explain the four main functions of the financial system.

A: The financial system is a network of institutions, markets, regulations, and laws that facilitates…

Q: Discuss how Europe Is Worried about Trump’s Plans to De-Regulate Banks?

A: Europe is worried about Donald Trump's plans to de-regulate banks because it could lead to another…