What is the primary cause of booms and busts in a market economy with a central bank?

Q: Did Central Banks seem totally unprepared to deal with the pending economic fallout? Is the Central…

A: In an economy, the central bank is one of the authorities that can stabilize the market by…

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: Briefly explain the policy trilemma of the Central Banks. Give examples of how different countries…

A: Open Economy: When one nation trades with other countries through various means, it's called an open…

Q: Why central bank can be semi government ?

A: Semi-Government: A semi-government business is one that is owned by private firms and is…

Q: Which of the following is one of the Five Fundamental Questions? Multiple Choice O O How much should…

A: Economics refers to the social science that focuses on the production, distribution, and consumption…

Q: In what respects is the central bank like a private banking institution and it what respects is it…

A: The central bank is an apex banking institution in a country. It is responsible to regulate the…

Q: Let's assume that in the Asgardian's model of the economy the natural rate of interest is denoted as…

A: Asgardian central bank The central bank is considered the apex bank of the nation and is…

Q: What happens when the government uses it's overdraft facilities at the central bank

A: Macroeconomic monitoring will remain crucial since it affects the economy's final expansion route as…

Q: Is full employment a realistic goal for a central bank? Please illustrate using examples

A: Full employment is defined as the utilisation of all available labour resources in an economy and…

Q: Should Central Banks be independent? Explain and discuss.

A: The question of whether central banks should be independent is a topic of ongoing debate in the…

Q: sing the macroeconomic environment of a bank explain if the economic environment enables an increase…

A: The macro-environment alludes to how the macroeconomic circumstances in which an organization or…

Q: With the use of a central bank, which of the following becomes less and less important over time?…

A: The question is asking which of the listed items becomes less important over time with the use of a…

Q: Explain tools used by central bank to: stimulate economy, to contain inflation How do government…

A: Central bank is an institution assigned with the task of maintaining proper money supply in 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: Why was the European Central Bank less aggressive than the U.S. Federal Reserve Bank in responding…

A: Answer- Need to find- Why was the European Central Bank less aggressive than the U.S. Federal…

Q: In 1971, the German central bank, the Bundesbank floated the DM rather than avoid taking what two…

A: The German current account had almost returned to normal in 1970-71. Waves of international money,…

Q: can you explain what the meaning of "central banks are like birds" ??

A: A central bank is a national or supranational institution responsible for implementing monetary…

Q: What practical difficulties will central bank face if it varied natural rate of interest?

A: The neutral rate of interest or sometimes what is referred to as the natural rate of interest is the…

Q: Describe the tools the central bank uses to control the money supply in the economy? Explain why the…

A: Monetary policy: - it is a tool of government or central bank of a country in which they control…

Q: Most US banks are privately owned, profit-making organizations. Although they provide a service just…

A: Central bank is an institution that uses the monetary policy to maintain the stability in the…

Q: The main responsibility of a Central bank is: Fiscal but not monetary policy…

A: A central bank is basically a financial institution with exclusive authority over the production and…

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 would it be problematic for a central bank to havea primary goal of maximizing economic growth?

A: A central bank conducts the monetary policies of a country.  It also regulates the commercial banks.

Q: Suppose the economy is in recession. Provide possible actions taken by central bank to use monetary…

A: Meaning of Monetary Policy: The term monetary policy refers to the situation under which the money…

Q: Using a money market, a causal chain, and the Macro model, describe and show how expansionary…

A: The money market is the component of the economy which provides the short term funds and loans to…

Q: Which of the following is one of the Five Fundamental Questions? Multiple Choice How much should…

A: Economics is the social science that focuses on the production, distribution, and consumption of…

Q: Explain the main theories of central bank behaviour.

A: Main theories of central bank behavior 1)Monetary stability For monetary stability,central bank may…

Q: riefly explain how a Central Bank will control the Money supply within an economy.

A: The money supply refers to the stock of money in an economy at any point of time. It is fixed and…

Q: The incorrect statement related to the evolution of central banks: a. There were only about a dozen…

A: Central bank started in 18th century.

Q: Identify a newspaper article in Bahamas(link to article) that provides a situation in which an…

A: Expansionary policy seeks to stimulate AN economy by boosting demand through financial and financial…

Q: The primary function of central banks is to: Answer a. Increase risk and volatility to increase…

A: In macroeconomics, the government and the central bank plays a very important role in stabilizing…

Q: How the Bank of Canada might attempt to stimulate an economy that is going through a period of…

A: Bank of Canada can implement monetary policy during the period of contraction.

Q: The former chairman of the Federal​ Reserve, Alan​ Greenspan, used the term​ "irrational exuberance"…

A: If the economy grows too fast, asset bubbles form which might go bust and the economy may crash.…

Q: why is the capital market is riskier than the money market?

A: A market where buyers and sellers engage in financial securities trade such as stocks, bonds, etc.…

Q: central bank's function as a banker to the government

A: A central bank is an entity that plays a very important role in the banking system of a nation. It…