Open market operations conducted by central banks involve: a) Buying and selling government securities in the open market b) Setting interest rates for consumer loans c) Insuring bank deposits d) Regulating credit card transactions

Explain the importance of “central bank independence”, discussing its advantages and disadvantages

Identify regulators in sectors apart from financial services, that should be involved in the Central Bank’s Fintech Regulation Committee. Motivate why these regulators .should be involved.

What are the effective strategies to make the rural bank capable to pay-off a short and longterm loan so it can finance the bank for its plans of expansion?

In a less-developed economy, cattle is widely accepted as payment for goods and services. Nearly all goods and services are priced in terms of cattle; however, cows vary in quality, become less valuable with age, and are difficult to move over long distances. Which of the following functions of money do cattle provide? Select the two correct answers.     portability   uniformity   medium of exchange   unit of account   store of value

If the U.S. government has easy (cheap) access to foreign savings, through what mechanism will crowding out occur?     interest rates   current taxes   future taxes   money supply

Discuss the implication of shadow banking as a source of raising finance in developing economies.

Which of the following describe a common cause of bank panics? Check all that apply. Potential buyers of the assets of a bank, incorrectly rumored to be distressed, may suspect the assets to be of poor quality. Rumors that a bank is in financial trouble spread easily. Bank regulators are bureaucrats who do not keep up with real-world banking issues. Which of the following are reasons why bank panics were largely eliminated after 1933? Check all that apply. The shadow banking system has grown larger than the regular banking system. The Federal Reserve ("the Fed") stands ready to inject reserves into the system more quickly in a crisis. The Fed and other government agencies continuously monitor the financial condition of banks.

Which of the following will limit the expansion of the money supply following a new deposit? A strong demand for new loans A re-depositing of all loan proceeds People hanging onto currency in private safes outside of commercial banks Failure of banks to voluntarily hold excess reserves

The banking industry A) should have an efficiency advantage in gathering information that would eliminate the need for the money markets. B) exists primarily to mediate the asymmetric information problem between saver-lenders and borrower-spenders. C) is subject to more regulations and governmental costs than the money markets. D) all of the above are true. E) only A and B of the above are true.