Central Bank

Market interest rates are determined A) by banks. B) by the New York Stock Exchange (NYSE). C) only by the demand for loanable funds. D) only by the supply of loanable funds. O E) by both the demand for and supply of loanable funds.

The term "subprime or nonprime" refers to which of the following credit risk characteristics of individual borrowers? AO Low loan-to-value ratios Low debt-to-Income ratios 898 High credit scores High levels of past loan delinquencies 00 €

Which of the following actions can the Federal Reserve take to reduce inflationary pressures in the United States?  A. Increase government spending B. Increase the money supply C. Increase interest rates D. Increase taxes

A: What are the General Principles of Bank Management? B: How Banks Manage the Credit Risk?

Considering an economy with two labor markets – one for agricultural workers and one for manufacturing workers. Suppose there is a Dutch Disease which explains about a major market failure originated in the existence of cheap and abundant natural or human resources that keep overvalued the currency of a country for an undetermined period of time, thus turning non profitable the production of tradable goods using technology in the state-of-the-art. It is an obstacle to growth on the demand side, because it limits investment opportunities. Suppose initially that neither is unionized what will happen to these conditions? a) If manufacturing workers formed a union, what impact would you predict on the wages and employment in manufacturing? b) How would these changes in the manufacturing labor market affect the supply of labor in the market for agricultural workers? c) What would happen to the equilibrium wage and employment in this labor market?

9

Regulations are used by regulators as a viable means to mitigate risk in the banking sector. However, over time, many arguments have been put forth in favor of regulations and against it. Some of the most pertinent arguments include all of the following EXCEPT? a. Regulation is essential to effectively managing the relationship between risk and return, although it can reduce the opportunities available to financial institutions to increase shareholders wealth. b. Regulators seek to create a safe banking environment to ensure the stability of the global financial system. However, in doing so, it reduces the competitiveness of financial institutions, and inevitably their ability to effectively compete with other banks. c. Regulators seek to mitigate any negative impacts that can result in failures of the global financial system, while at the same time, discourage undertaking risky activities by financial institutions. d. The underlying objective of regulators is to…

Below are Measures of Money Supply in Ghana from 1997 to 2004. Using data fromBank of Ghana Website or other sources, update the Table by provided the relevantfigures from 2005 to 2018.   currency outside banks demand deposits narrow money(M1) saving & broad money  broad money*   C D M1 time dep M2 M2+ Year (a) (b) (c) = (a) + (b) (d) (e) = (c) +(d) (f) 1997 981.80 738.90 1,765.70 832.80 2,598.50 3,318.80 1998 1,083.60 986.30 2,069.90 1,161.40 3,231.30 3,903.80 1999 1,186.10 943.00 2,129.10 1,433.60 3,562.70 4,533.20 2000 1,739.10 867.70 2,606.80 1,788.40 4,395.20 6,338.40 2003 6,338 5,035 11,373.00 5,225.00 16,598.00 21,179 2004 7,303 7,300 14,603.00 6,400.00 21,003.00 26,686 Quasi-Money = Savings deposits + Time deposits + Certificates of deposit Broad Money* = M2 plus Foreign currency deposits Note. Both M2 and M2+ are called broad money

Monetary policies refer to policies that affect the supply, demand, and value of the nation's currency.  True False

In your own words: 1. Before the Glass/Steagall Act what were commercial banks doing with depositor money to cause them to lose their money? 2. What in the Glass/Steagall Act prevented the banks from doing that again?

The Fed can put more reserves into the banking system by: Selling government securities Increasing the discount rate Purchasing government securities O Lending to nonbanks

40) Which of the following can be considered as financial institutions in a good financial system? a. Treasuries b. Stock Exchanges c. Banks d. All

B. Do you think that the central bank, as lender of last resort, should also supervise the financial industry? Why or why not?

Read the above passage. How does this relate to business, and what are some solutions to this problem? What is the purpose of this passage and how does it affect the business management right now?  Americans’ collective credit card balances totaled $986 billion at the end of last year, up $61 billion from the previous quarter, according to the Federal Reserve Bank of New York’s quarterly household debt report. Overall, U.S. household debt—including mortgage, auto, student loan, and credit card debt—grew to $16.90 trillion at the end of 2022.  That $61 billion increase in credit card debt, however, was the largest quarterly jump recorded in the history of the N.Y. Fed’s data, which dates back to 1999. Additionally, the total accumulated credit card debt surpassed the pre-pandemic record of $927 billion.  “Credit card balances grew robustly in the fourth quarter, while mortgage and auto loan balances grew at a more moderate pace, reflecting activity consistent with pre-pandemic levels,”…

Washington Mutual, was a bank which went bankrupt at the end of 2008 due to a number of risk management issues. 3. Discuss how this model can mitigate future credit risk issues

Which of the actions can the Federal Reserve take to reduce inflationary pressures in the United States?  A. Increase government spending B. Increase the money supply C. Increase interest rates

1. A banks system is aims as determine the responsibilities and authorities for the managers and employees to evaluate their financial management goals. Discuss the goals of banks and the role banks play to enable these goals to be achieved.

3. Explain the concept of the money multiplier and how the multiplier depends on the reserve requirement.

Corporate bonds often have higher yields than government bonds to compensate investors for which additional risk?   A Default B ESG C Market D Liquidity

Which of the following statements is NOT true about Qard Hassan? The borrower needs a specific amount borrows from a lender with or without a clear stipulation regarding the maturity date 1-Simplest form of financing scheme 2-The loan is paid on maturity without increment or interest 3- There is a penalty for late delivery

discuss the Role of political office bearers responsible for finance. Use the following concepts on your discussion. • The Minister of Finance • Monetary control • Fiscal control • The annual budget

With regards to inflation, comment on any differences between the input and output rates of inflation, the implications and consequences, and what action could be taken to enhance the banks position.

Liquidity risk is very serious for all institutions, how it is much more dangerous in banking sector?

Banks are in the business of managing risk Risk is a fundamental element that drives financial behavior. Without risk, the financial system would be vastly simplified. However, the risk is omnipresent in the real world. Financial Institutions, therefore, should manage the risk efficiently to survive in this highly uncertain world. The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for the long-term success of a banking institution. Credit risk is the oldest and biggest risk that a bank, by virtue of its very nature of the business, inherits. This has, however, acquired a greater significance in the recent past for various reasons. Foremost among them is the wind of economic liberalization that is blowing across the globe. India is no exception to this swing…

Which of the following statements are true about exchange rate risk? Check all that apply: a)A Canadian investor with an investment in U.S Treasury bills faces exchange rate risk. b)Exchange rate risk can be hedged using a futures or forward contract in foreign exchange. c)Exchange rate risk arises from the uncertainty in asset returns due to changes in the exchange rate between the currency of the investor and the foreign currency. d)Exchange rate risk can't be perfectly hedged, even if the return earned in the foreign currency is known beforehand.

No need generalized answer ok solve correct. Make a review outline or summary on the discussion about foreign currency hedging and its accounting treatment in the Philippines.

Write a 500 word essay on the analysis of the role of Basel Core Principals of Effective Bank Supervision for operational Risk

Evaluation of global warming/sustainability and potential impact on the banking industry. Answer in 150 words.

according to the theory of reflexivity financial markets:   A. actively affect the social and institutional reality underlying financial markets. B. Neutrally reflect the intrinsic values of securities C. passively channel funds from lenders to borrowers

When you use a debit card to make a purchase, a financial institution is extending credit to you and expects to be paid in the future.; True or False

An institution which has responsibility for financial affairs on the property of others is known as ΟΛ fiduciary financial institution brokerage firm ball bond B. O C. O D.

Obtain and review a credit policy and procedures document from any selected financial institution. Review the contents and write a critique on the three key areas addressed in the policy. Highlight any one area which you think was not properly addressed, making two recommendations for improvement of the document, the policy and procedures