How important is the Central Bank in the financial market?

Q: What are the functions of central bank in developed economies?

A: Developed countries are the one that is able to have sustained developement and produce output…

Q: What is a liquidity crisis?

A: Answer: Liquidity: liquidity refers to the ease at which the assets can be converted to cash.

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: What is the 2008 financial crisis. What are its causes and effects?

A: The 2008 financial crisis was an economic crisis that started in the USA and then spread to the…

Q: Explain any two important functions of central bank in an economy?

A: According to the given question  In simple words we can say that a central bank is a bank which…

Q: What is a bank run?

A: A bank run is a situation when a large number of customers starts withdrawing money or deposits from…

Q: What do you think prevented the financial crisis of2007–2009 from becoming a depression?

A: The financial crisis of 2007-2008 or the Great Recession was a period of a severe economic downturn…

Q: Which of the following is a traditional tool used by the Fed during recessions?

A: Fed use various tools to neutralize the effects of fluctuations like boom,recession etc,..

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: If in an economy bank rate is increased how will it affect the demand for credit? Explain

A: To prevent volatility, the basic goal of monetary policy is to maintain control over the money…

Q: How does the Central Bank affects the interest rate?

A: Money Supply: It is the total quantity of money in the economy at a point in time. Money supply and…

Q: What role does the federal reserve bank play in conducting monetary policy, fiscal policy, and…

A: Federal Reserve Bank is the Central Bank of the United States, created by the Congress. Federal…

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: Identify which item is not one of the six parts of the financial system. Answer a. Credit cards b.…

A: A financial system is a group of institutions that authorize the exchanging of money, such as banks,…

Q: Briefly discuss how the central bank plays the role of controller of credit in an economy?

A: Commercial banks tend to create during their course of operations a lot of credit. This credit could…

Q: If the Fed is buying bonds, then it wants bond prices to _____ and the federal funds rate to _____.

A: Federal funds rate is the target interest rate set by the Federal Open Market Committee  at which…

Q: What is the importance of Central Bank in nation?

A: Central banks play a crucial role in ensuring financial and economic stability. They help in…

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: Let's pretend the economy is in a horrible recession, inflation is rising, and interest rates are…

A: A recession is a period in which the output level is below the potential level of output and the…

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: Why does a country need a Central Bank?

A: The central bank is an apex financial institution of a country.

Q: WHAT ARE THE GOALS OF MONETARY POLICY?

A: The expression "monetary policy" tells the how much cash and credit in the U.S. economy by Federal…

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: what kind of monetary policy can be used to fight against recession and depression

A: Recession is a temporary period of economic decline which leads to a fall in GDP for two successive…

Q: Comment on the policies of the FED and the government during the Great Recession period. How do they…

A: The term the great Recession may be a play on the term the great Depression. The great Recession…

Q: How did the Lehman Brothers' collapse fit into the Great Recession?

A: There have been several events and happenings in the past that have catered to some unusual…

Q: During The 2007-2008 financial crisis, Sould government purchase the devalued paper, so that…

A: Devaluation is the reduction in official value of the home currency in terms of other currencies.

Q: Why would a central bank be concerned about persistent,long-term budget deficits?

A: Budget deficits refer to the situation of the government when the expenditure in the economy exceeds…

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

A: Central bank is said to be a financial institution that has the authority to control money supply of…

Q: Explain one example of how the banking system or the financial market failed and caused economic…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: Where does the Central Bank's profit go?

A: Central Bank of an economy cab earn profit in terms of interest income as it provides loan to the…

Q: How do we restore confidence in the financial and banking industries and our political systems?

A: Introduction: The Industrial Revolution was one of the most significant events in human history,…

Q: If the Fed buys $5 million of bonds from the First National Bank, what happens to reserves and the…

A: The Fed buys bonds from the First National Bank increases reserves by $5 million and reduces…

Q: What does liquidity mean? What are some less than 100% liquid monetary instruments?

A: In economics we can study regards many instruments like money , bonds etc. These are those…

Q: What are the reasons why the Central Bank is the “lender of last resort?”

A: Lender of last resort means that, in systematic and logical sense, an individual who loans the money…