Which of the following is TRUE about interest rates offered by financial Intermediaries? * A.The interest rates issued by financial intermediaries are standard across different financial institutions. B. Interest rates paid by DSUs are lower and SSUs are paid with higher interest rates. C. Interest rates issued by financial intermediaries are based solely on the issuance of central banks. D. Interest rates paid to SSUs are lower compared to the interest they collect to DSUs.

11) One possible reason for slower growth in developing and transition countries is A) capital may not be directed to its most productive use. B) strict accounting standards are too stringent for the banks to meet. C) the weak link between government and financial intermediaries. D) the lack of adverse selection and moral hazard problems. 12) One reason financial systems in developing and transition countries are underdeveloped is A) they have weak links to their governments. B) they make loans only to nonprofit entities. C) the legal system may be poor making it difficult to enforce restrictive covenants. D) the accounting standards are too stringent for the banks to meet. 13) Because of the weak systems of property rights in many developing and transition economies, the financial system is unable to use collateral effectively worsening the ________ problem. A) adverse selection B) moral hazard C) principal/agent D) diversification 14) In developing…

In response to the recession of 2008, the US Federal Reserve Bank made several efforts to increase banks excess reserves, decrease interest rates for lending, and increase lending.  These "extraordinary measures" have been somewhat controversial (at least among American politicians). What are some of the effects of these efforts and/or some of their potential future impacts?

Read the following premise carefully and answer the questions specifically and in detail: "Financial institutions such as banks, mortgage companies and finance companies serve as intermediaries between those who have a surplus versus those who have a deficit creating a capital injection market." Explain in detail the function of the financial market and its influence on capital injection. Analyze the responsibility of the financial system in the demand for investment versus the supply of savings.

Briefly explain three reasons for regulating financial markets. How does each reason improve financial markets? What are some unintended consequences that would harm financial markets?

Determine the key reasons why a multinational corporation might decide to borrow in a country such as Brazil, where interest rates are high, rather than in a country like Switzerland, where interest rates are low. Provide support for your rationale

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

Explain how each of the following helps to stabilize the financial system: deposit insurance, capital requirements

Could you add more information regarding the below statement? "I do agree with the notion that the Federal Reserve is the most important financial institution in the world. The reason being that it plays such a pivotal role in the economy - for better or for worse. For example, the federal reserve supervises banking institutions and provides many financial services to the U.S government. In addition, the federal reserve has the power to regulate the economy when it is unstable. For example, the Federal Reserve has the ability to manipulate interest rates in order to stabilize the economy when it is needed most. Overall, without the Fed, the economy would have a much more difficult time maintaining itself. When it comes to inflation specifically, I do believe that the Federal Reserve should step in as it is their responsibility. I think that increasing interest rates could be a significant help, but I think that decreasing the money supply/circulation as well as selling bonds could help…

Briefly describe the concept of Quantitative Easing. Why was this policy implemented during the COVID-19 recession in Australia? Explain briefly.