What is the financial system, Name and describe two markets that are part of the financial system in the U.S. economy.  Name and describe two financial intermediaries.

Q: How does asymmetric information affect the process of transferring resources from surplus to deficit…

A: Asymmetric information: - It is a condition where one party involved in an economic transaction has…

Q: explain why Emerging Market Economies plays a crucial role in the financial market

A: The countries that are in the process of becoming economies that are industrialized and have huge…

Q: Why are the US interest rates, the Fed Funds rate and Treasury Securities interest rate so important…

A: A global market is a place for the open economies to make a transaction with the rest of the world,…

Q: in the role of commercial banks in an economy?

A: Macroeconomics refers to the economics that deals with the structure, decision-making performance as…

Q: Explain Globalization and Financial Markets

A: Economics: Economics aspects is the sociology that reviews how individuals' interface with esteem,…

Q: Please discuss the following. 1. Financial markets are institutions and systems that facilitate…

A: The term "financial market" refers to a place or platform where stocks, bonds, currencies, and other…

Q: Several European countries suffered from financial crises at the same time as the U.S. Match each…

A: Unemployment refers to those who are employable but can't find work. Those in the workforce who are…

Q: What are the financial markets? What are the parties of the capital market?Explain it.

A: For the smooth operation of a capitalistic system, entrepreneurs and businesses rely on finance that…

Q: how does distortion affects the financial and economic values of the tradable and non-tradable goods

A: Market distortion: It refers to the increase prices of the goods and services. It is basically the…

Q: Write about one of the sources of capital receipts

A: Let us first understand what are capital receives.  If there is a reduction in the assets of the…

Q: How do the sophisticated financial systems of modern economies affect the relationship between…

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

Q: Explain, using examples, why financial crises have different causes in emerging economies compared…

A: Developed economy: An economy is considered to be a developed one where exist a sovereign state with…

Q: Which cities are the top two largest financial centers of the US? A: Chicago B: New York  C:…

A: The top largest financial centers of the US are: Cities GFCI Rank GFCI Ratings New york 1 762…

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: 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: Match each of the following players in the financial system with the financial product(s) they are…

A: Commercial Banks deal in Bonds & Loans. The bonds generally include Fixed Deposit Bonds…

Q: What is the relation between social economic and the financial crisis? What is the impact of…

A: Solution: Economics: It is the study of understanding different aspects of economy.  Economy: It is…

Q: explain the roles financial market play in the development of the economy of Ghana

A: Including bonds, equity, and derivatives, the Ghanian financial market saw its best performance…

Q: Suppose that the city of New York issues bonds to raise money to pay for a new tunnel linking New…

A: Investment is considered an important component of economic growth. It can be categorized into two…

Q: The Central Bank of Iran increased its interest rates. How will an increase in interest rates affect…

A: Usually interest rates are increased to reduce the borrowing levels and offset inflation

Q: What caused the Stock Market Crash, when did it happen, and how did life in America change as a…

A: stock market crash of 1929, similarly called the Great Crash, a sharp lessening in U.S. protections…

Q: Explain how (i) open market operations (ii) reserve requirements and (iii) the discount rate can be…

A: Monetary policy: These are the policy measures that are being taken by the central bank of a country…

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: A healthy and constantly evolving financial system is the foundation for economic efficiency and…

A: Financial markets : Financial markets (such as those that trade stocks or bonds), instruments (from…

Q: what is the significance of capital and money markets?

A: Market: It is a place where buyers and sellers meet for a common purpose. In other words it is the…

Q: From the IMF Working Paper about Global Financial Crisis briefly explain one of the alternatives: a)…

A: b)Financial integration and interconectedness To recover from global financial crisis,IMF has…

Q: How do financial markets help the economy? What are the key financial tools for the macroeconomy?

A: Macroeconomics is the study of aggregate of the economy. It was first derives by the economist…

Q: Differentiate between a traditional economy and a digital economy using FedEx as an example.

A: Answer: Answer: Introduction: Traditional economy: it refers to the economy which is based on…

Q: One of the biggest problems for any economy is to figure out how to get or transfer money from…

A: Financial markets are very important for the economy. Financial markets include capital market and…

Q: What is foreign finance? Give example

A: Foreign Finance is also known as international finance

Q: Profitt-seeking intermediaries widely exist in product, labor, financial and other markets. These…

A: Normal 0 false false false EN-IN X-NONE X-NONE…

Q: The government, business and household sectors are all suppliers of funds into the financial system.…

A: A financial system is a platform for transactions related to funds between financial market…

Q: Discuss the role of banks as financial institutions that fuel the economic growth of a nation.

A: To shape the economic world and the functioning of it, the banking system of a country plays a major…

Q: What role do commercial banks play in the development of an economy

A: The commercial banks play a vital role in any economy. Developed commercial bank systems ensure and…

Q: What is the significance of financial markets in the country’s economy?

A: Financial market: - it is a market for financial securities where people buy and sell financial…

Q: Discuss briefly how households, businesses, and the government of an economy are connected through…

A: Financial markets, as the name implies, are a form of marketplace that allows you to sell and buy…

Q: If interest rates increase in financial markets, then...

A: Interest rates are defined as the charges taken by the lenders for the money lent ti the borrower.…

Q: . Explain the term capital market and provide examples of this

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Why did China fare much better than the United Statesand the United Kingdom during the 2007–2009…

A: The financial crisis occurs in 2007 – 2009 occurs due to the crisis of the financial market of the…

Q: What do you think were the main causes of the Financial Crisis?

A: In a financial crisis, asset expenses see a steep decline in price, companies and customers are…

Q: A less developed country will A. most likely be deficient when it come to funds, thus it is always…

A: A less developed country (LDC) has the following characteristics High population growth Inadequate…

Q: Define the term financial market and give examples to explain your understanding

A: Countries financial system facilitates the movements of funds from savers to borrowers .   And…

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…

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.