What is the purpose and workings of the Monetary policy transmission mechanism (MPTM)? What are the causes of time lag in MTPM, please discuss including some critical evaluation.

Q: how can Credit Metrics Model resolve credit risk management issues

A: what is credit risk- credit risk is that the risk to default ensuing from a receiver failure to…

Q: How is the risk-adjusted discount-rate approach more commonly practiced in the real world?

A: Risk adjusted discount rate approach is an approach which is used in assessment of various long-term…

Q: What is the relationship of financial analysis in the conduct of financial turnaround program

A: Financial analysis is a process that evaluates the performance of the business, projects, or any…

Q: How does the Broader Diversification Reduce Risk?

A: Portfolio is a pool of different investments/assets. Investors can categorize the risks in two…

Q: Another implication of fiscal deficit is

A: Following is the answer to the question

Q: What is a value-for-money (VFM) audit? Give one example

A: Auditing: Auditing is the practice of verification of the data and records that are prepared. It is…

Q: Discuss how diversification reduces firm specific risk.

A: Diversification is investing money in many investments rather than a single investment. In…

Q: What is the relationship between future exchange and clearinghouse?

A: Future exchange and clearing house are two different parts of future markets.

Q: Discuss the argument that central banks should have a mandate for price  stability to prevent an…

A: The central bank is the banker's bank. It gives advice to the government Central bank assists in…

Q: t is true or false Policy makers are pass laws and set fiscal and monetary policies?

A: The purpose of fiscal and monetary policy is to achieve- i) Full employment ii) High rate of growth…

Q: he differences in the risks and mechanics of on-balance-sheet hedging and off-balance-sheet h

A: Step 1 Balance sheet enclosure is not intended to protect the company's profit margin from monetary…

Q: Explain why risk adjustments are important and how they can affect firm value.

A: Risk adjustments are a critical component of financial analysis and investment decision-making,…

Q: The concept that market forces in the macroeconomy can remedy a recession is referred to as:…

A: Monetary Policy- Monetary policy refers to the actions and communications of the central bank in…

Q: What are potential regulatory actions that should be taken to mitigate climate-related risks to…

A: Global warming and change in climatic patterns and events are negatively impacting our financial…

Q: The static GAP focuses on monitoring net interest income in the long term.   Select one: True…

A: The Static GAP focuses on monitoring net interest income in the short term but it can be calculated…

Q: what basic criteria are commonly used in evaluating credit risk?

A: Credit risk is the risk of facing a loss due to a counterpart's failure to repay the debt in part or…

Q: Explain how useful the price mechanism is in tackling the basic economic problem?

A: the main role of price mechanism in basic economic problem is allocate scare resources in market…

Q: behavioral view” of market efficiency

A: The Efficient Market Hypothesis is usually predicated on the belief that traders and investors…

Q: What are the advantages of using duration as opposed to interest-sensitive gap analysis?

A: Asset liability management is a technique used to address the risks that financial institutions face…

Q: Why has Macro-prudential policy increased in use following the GFC? Provide explanations in detail…

A: The GFC refers to the Global Financial Crisis. It occurred in the year 2008 when the subprime…

Q: What role does MAD play in evaluating a forecasting model?

A: MAD refers to mean absolute deviation. It is also known as average absolute deviation which is the…

Q: omparing Value at Risk (VAR) and Expected Shortfall (ES), which is preferred by regulators for…

A: VAR that is value at risk and another is ES expected shortfall these are two methods to measure the…

Q: How will a decrease in time preferences affect the loanable funds market?   A.   There will be an…

A: Decrease in time preferences tells us that individuals in the economy are more patient and more…

Q: What is trend analysis and what purpose d

A: Trend Analysis: Trend Analysis is a statistical method that attempts to determine upcoming movements…

Q: What will be Effects of Changes in “Going-In” Cap Rates in Response toSupply and Demand?

A: Going-in-cap rate: Going-in-cap rate is the cap rate originated on the ratio of the initial year of…

Q: How is the ERC (efficient response coefficient) determined and which role analyst forecasts play in…

A: The earnings response coefficient, or ERC, is a calculated ratio between stock returns and the…

Q: Which tranches in a CMO issue are least subject to price variances related to changes in market…

A: The Tranches are various layers of investors in a collateralized mortgage obligation. There are four…

Q: Why does riskiness increase with time?

A: Risk can be said as that difference that arises which arises on expected outcome or investment's…

Q: b. Discuss why financial analysts prefer the CAPM model over other evaluation models?

A: CAPM is an abbreviation used for Capital Asset Pricing model which is used by investors or portfolio…

Q: What does the usage of technical analysis mean for the theory of market efficiency?

A: Market efficiency:- Market is said to be ‘efficient’ only if the price of every security in the…

Q: Why would government usually default first to monetary policy for stabilization before using fiscal…

A: Monetary policy - It is concerned with the monetary system of a country. Monetary policy is the…

Q: What is the role of transferring credit risk? What is the various instruments used to transfer this…

A: Risk transfer is a management strategy that involves transferring the risk from one party to another…

Q: Explain why the highest probable key risk drivers in the Single Supervisory Mechanism risk map is:…

A: The current pandemic crisis challenges the banking system along known and unknown tracks. While the…

Q: What is meant by the phrase natural hedging againstexchange rate risk?

A: Hedging is a mechanism that is used to eliminate or minimize the risk of loss that is associated…

Q: What are some limitations of financial performance measures?

A:

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.