Some charge that the Crisis of 2008 was caused by the greed of Wall Street firms and other bankers. Do you agree?

Q: How did the recovery stimulant after the collapse of the dot-com bubble in the late 1990s and the…

A: In the late 1990s, there was speculation in the companies related to the internet in excess due to…

Q: how does a general increase in uncertainty as a result of a failure of major financial institution…

A: Adverse selection refers to the situation where there is a lack of information existing in 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: To what extent was the Fed being responsible for the housing price bubble of the early 2000s.

A: The housing price bubble of early 2000s further led to subprime crisis which was majorly responsible…

Q: The importance of the Central Bank in the financial market.

A: Answer: Introduction: A central bank is the apex body that manages the monetary policy and the…

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: What did the McKinnon and Shaw predict about the movements of interest rates once financial markets…

A: We have show that, McKinnon and Shaw predicted that interest rates would rise when it càme to…

Q: What is leverage, and why is it so important in understanding the financial crisis?

A: Leverage: The term leverage refers to the practice of investment by taking loans and borrowings. A…

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

A:

Q: Is the stock market "out of control?" How can the poor benefit from this financial institution?

A: A company or institution which is involved in the financial activities of the economy like,…

Q: Were low interest rates the underlying cause of the financial crisis? In the previous unit, we…

A: The financial crisis of 2007-2008 had been building for years. By the summer of 2007, financial…

Q: In our current financial system in the United States, Americans need "money" issued by commercial…

A: A commercial bank basically refers to a type financial institution that accepts deposits, offers…

Q: What’s the difference between a liquidity crisis and a solvency crisis? When Lehman Brothers went…

A: Liquidity can be defined as the ability of businesses or organisations to pay off its current…

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: 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: Explain why the 2010 Obama Wall Street Reform Act was considered the most extensive overhaul of the…

A: When a financial crisis of unimaginable scale and intensity devastated the United States, millions…

Q: The Minsky Model of a Financial Crisis .   Economist Hyman Minsky believed “…the financial system in…

A: A market economy is an economic system where price is determined based on the forces of supply and…

Q: Why do bubbles form, and how can they turn into financial crises?

A: When one or more major financial assets, such as stocks, real estate, or oil, lose a significant…

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: During the 2007-2009 period, the US government made its most dramatic interventions in financial…

A: “Free and more flexible markets will still do more for the world economy than the heavy hand of…

Q: Effective crisis management requires a strong bank resolution framework. What is the meaning of…

A: An efficient and reliable insolvency structure would also assist in dealing with legacy assets and…

Q: Explain on how the BASEL III affected the financial institution to the country generally?

A: Basel III is a 2009 international regulatory agreement that established a set of measures aimed at…

Q: What is financial crisis? What causes financial crisis? Is it possible it could happen again? Give…

A: Financial market disruption caused by decreasing asset values and insolvency among debtors and…

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: What were the implications of the crisis on the financial industry? (Savings and Loans crisis in the…

A: The Savings and Loan Crisis (S&L) was a long-drawn-out financial crisis. Between 1986 and 1995,…

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: Access to funds, domestically and  internationally, is made easier with the presence of financial…

A: Access to funds explains the availability and affordability of the monetary resources to make an…

Q: Should monetary authorities take steps to prevent asset bubbles? Discuss the instruments that the…

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Q: Why does stock market go down, when treasury yields go up?

A: This is a really important relationship and causal effect. The yield on bonds is generally used…

Q: Is it preferable for central banks to primarily target inflation or unemployment? Why?

A: Unemployment is a situation in which workers in the economy are willing to work at the prevailing…

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: 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: Which of the following is TRUE about financial regulations? * A. Financial regulations makes the…

A: Financial Institutions are defined as those companies which deal in financial and monetary…

Q: Which of the following are factors that contributed to the crisis of 2008? Check all that apply.

A: The Recession of 2008 began with a sharp decline in the economic activity in the United States…

Q: What do you think should be done to prevent another global financial crisis?

A: Financial crisis are results from the systemic failures, regulatory absence, pandemic, unanticipated…

Q: How should a yield curve look like in order for lenders to be encouraged to start lending again?

A: Yield curve: Yield curve is the graphical representation of different yield (interest rates) that a…

Q: What happened the financial crisis of 2008 and 2009 ? what can  do to ensure it does not happen in…

A: The crisis of 2008 was the next biggest economic downturn after the Great Depression of 1929. The…

Q: Monetary and fiscal policies directly affect the level of activities in the financial market.  Is…

A: Monetary and fiscal policies directly affect the level of activities in the financial market.  Is it…

Financial Institutions and Federal Bank

The word financial institution is a kind of business organization that deals with the financial activities of a nation. These activities include accepting deposits, making payments, granting loans and advances, transferring funds, holding shares, providing credits, purchasing and selling foreign exchanges, investments in shares, futures commodities, and many more.