PaolaCamacho_ECO320_WEEK4

Topic: Banks and the Economy   For an economy to thrive, there must be a strong banking system. If the banks fail and must be bailed out, it will have an effect on the economy.   If people lose faith in the safety and security of financial institutions, what will happen to the U.S. economy?   Please use at least 100 words in your response.

Macroeco discuss

Why is it important for the central bank of a country to be independent? (i) The central bank needs to be free from political pressures. (ii) Research has shown that inflation tends to be lower where central banks have greater independence. (iii) The central bank needs to ensure that it has the freedom to set the federal funds rate at one fixed level. (iv) The central bank needs to ensure that the Federal Reserve governor never has to testify before Congress. (i) and (ii) (ii) and (iv) (ii) and (iii) O (i), (iii), and (iv)

Topic: Federal Reserve and the Central Bank Question: What is a bank run and why might a bank run worsen if a bank has to sell assets in response to depositors’ withdrawals?

(Governor of the Central Bank of Malaysia (Bank Negara Malaysia)): Value based intermediation - beyond profit 1) Key Message 1 - Rethinking value through a renewed focus on the fundamentals of Shariah 2) KeyMessage 2 - Rethinking risk 3) KeyMessage 3 - Rethinking human capital 4) Changing mindsets Summarise on these 4 points subject: issues in islamic economics

Question 1 What is the role of the central bank in the financial sector and economy as a whole What is the structure of the central bank, highlight the key departments and their functions If government has power to control printing, why can they just not print money to pay debts

The central bank in Jamaica decides to pursue an expansionary monetary policy. (i) Identify one possible action they could take. (ii) Carefully explain, in as much detail as possible, how the chosen action will impact the money market.

Summarize the Before Collapse of Silicon Valley Bank, the Fed Spotted Big Problems article from the New York Times.  Descriptive (no more than one-half page in length).  Provide a summary of the article you analyze.  (What is the major idea or theme the author is describing, developing, or attempting to put forth? In what ways does the author expand on his/her major idea or theme?  What conclusions does the author reach?)   What I'm looking for here is a "bird's-eye view."  NO QUOTES; NO DATA or STATISTICS.

The central bank of the Bahamas country decides to pursue an expansionary monetary policy. (i) Identify one possible action they could take.  (ii) Carefully explain, in as much detail as possible, how the chosen action will impact the money market.  (iii) Illustrate the overall impact of the chosen action on the money market.

Topic: Federal Reserve and the Central Bank Question : What is the difference between illiquid banks and insolvent banks? How does that difference affect the lender-of-last-resort role of central banks?

MODULE 3: THE BANKING LAWS AND REGULATIONS LEARNING ASSESSMENT M3B PROBLEMS 1. For each of the following economic changes, predict what will happen to equilibrium interest rate and quantity of money in the financial market. Sketch a demand and supply diagram to support your answers. (Letter A is solved/ answered as a sample of how you are to present the answers for the remaining letters.) A. Gross domestic product (GDP) in the economy increases. MS, i, MD2 MD, Quantity of money Since GDP increase will cause an increase in money demand, this causes the equilibrium interest rate in the money market to rise. The equilibrium quantity of money is constant at Q since MS is fixed. (Now do the rest of the problems.) B. The BSP changes its bank regulations in a way that makes it cheaper and easier for banks to make loans. C. People gain confidence that the economy is growing and that their jobs are secure. D. Banks that have made loans find that a larger number of people than they expected are…

QUESTION 3 One view of the role of Banks is that they create liquidity. What does this liquidity creation involve? Turning hard cash into soft electronic money, such as bank account balances. Turning depositors cash into easy-to-use deposit accounts. Turning information-sensitive long-term loans into information-insensitive short-term deposits. Turning solid assets like houses into liquid assets like securitized mortgages.

Learning Activity 9.3 Question 3 (a) What are the functions of money? (b) There were three tools discussed in this session that are used by central banks to affect the money supply. However, not all central bank uses all three. Find out what tools are used by the central bank in your region to affect the money supply

Exercises/Drills: Exercise 1: Form groups. Each group will be given a question to answer. 1. Discuss the meaning of financial system. What is its importance to the nation? 2. Identify the different participants in the financial system and discuss their roles. 3. What is BSP? What is its role in the well-being of the Philippines? 4. What is monetary policy? What is its importance in the economy? 5. What are the different tools of monetary policy? Discuss how the tools of monetary palicy influence money supply and interest rates? Evaluation: What I have learned... Reflect on the lesson by completing the following statements: I learned that I. I was surprised that I.. I noticed that I.. I discovered that I... I was pleased that I...

Problem One UNIVERSITY OF GHANA BUSINESS SCHOOL (UNDERGRADUATE PROGRAM- MAIN & CITY CAMPUS) 2nd Semester 2022/2023 UGBS 204: Macroeconomics and Business 5th Tutorial set a. The Central bank of Ghana wants to increase the rate of economic activity in Ghana so it decides to increase money supply (i.e. an expansionary monetary policy) a reduction in required reserve ratio from 10 to 8%. Explain in detail how such a policy will lead to an increase in economic activity. Include graph(s) in your explanation. b) In ordinary language distinguish between the following pair of concepts i) Required reserve and excess reserve ii) Broad money and M2+ iii) Discount rate and Open market operation iv)Name three factors that can lead to a shift in both IS and LM curves

QUESTION ONE The Central bank of any country is a national bank responsible for the implementation of the monetary and fiscal policy of a country in order to avert or reduce inflation. This means that the bank is a vehicle through which the government accomplishes many of its economic objectives and deliver development to its citizens. Inflation can be too toxic to an economy as it diverts the economic intentions of any government. One of the impact of increased inflation is on an increased unemployment levels (Olivia Beria, 2016).i. Using Philips Curve, illustrate how increased inflations affects unemployment levels. ii. . Real money demand refers to the amount of money people want to hold in real terms, which means adjusted for inflation. It represents the desire for individuals to hold a certain amount of purchasing power in liquid form, in order to facilitate transactionsand make purchases. The real money supply is equal to the nominal amount of M2, divided by the fixed aggregate…

None

The central bank of Barbados decides to pursue anexpansionary monetary policy. (i) Identify one possible action they could take. (ii) Carefully explain, in as much detail as possible, how the chosen action will impact the money market. (iii) Illustrate the overall impact of the chosen action on the money market.

Describe the goals of the central banks of: a. USA b. CANADA c. UK

You are the new Governor of State Bank of Pakistan after Reza Baqir.  For each of the situations listed below, decide if you would use Easy-Monetary policy or Tight-Monetary policy. Explain each scenario within 150 words.Scenarios:(A)RGDP is growing steadily, and prices are rising sharply.  (B). The Pakistan is experiencing both high inflation and high unemployment.(C). We are in a recession.  Factory orders are down, and the economy appears to be slumping.  (D). Unemployment is low and prices are rising steadily.  (E). Unemployment rates are pushing 11 percent while the CPI has fallen from 8 percent to 2 percent growth.  (F). We are in a recession but are experiencing high inflation. (G). The money supply appears to be tight, and prices are on the rise.

Please answer the question below. Thank you!

ONLY QUESTION 2 The central bank of the country is concerned about the possibility that the country is going to face a high inflation rate, and it adopted a contractionary monetary policy as a result. Analyse how the central bank policy will affect the market for bonds: price, demand, and supply of bonds (hint: refer to relationship between the interest rate and the price of bonds).  Using a graph of the money market, discuss how it will affect the demand for and the supply of money. Analyse the process of achieving equilibrium in the money market.

To get a bank charter you need to demonstrate: (select all that apply)   A. That your community needs another bank.   B. That you have enough capital to start a bank   C. That you have the required reserves   D. That you are of good character.

Answer the question below. Do the reading and answer it correctly. Thank you.

* Question 21 The Federal Reserve changes the reserve requirement to meet monetary policy goals. What is a reserve requirement? the taxes that banks are required to pay to the government В the interest rate that the federal reserve charges on its loans C the interest rate that the federal reserve pays on bank deposits with the institution the percentage of customer deposits that banks must maintain possession of ©2021 Illuminate Education TM, Inc.

Discussion board for economics class: The Federal ReserveInstruction:Open a new thread and answer the question posted below. Your answer should be in the form of a mini-essay between 150-300 words.Read and respond to at least one of the your other classmates’ posts.Question: Some argue that the Federal Reserve is critical to our continuous economic stability and prosperity. Some others contend that the Fed should be abolished. What do you think is the right perspective?    ……………..Answer Preview……………… America’s central bank is known as the Federal Reserve and is fully responsible for the stability, flexibility as well as well-being of its financial and monetary systems (Bernanke, 2013). The Fed oversees and manages banks and other financial institutions in order to assure the well-being of the banking and financial systems of the country and to safeguard the credit rights of…

help me to answer part A, B please

All the following statements about a central bank are true except it ________. a. is a public authority b. regulates a nation's depository institutions c. accepts personal deposits d. controls the quantity of money

QUESTION 3We asked five students to give us three possible sources of an increase of the monetary base in the economy. Only one of the students came up with a completely correct list. This list included: an increase in central bank lending to banks, a purchase of government bonds by the central bank, a purchase of foreign currency by the central bank. an increase in central bank lending to banks, a sale of government bonds by the central bank, a sale of foreign currency by the central bank. a decrease in central bank lending to banks, a purchase of government bonds by the central bank, a purchase of foreign currency by the central bank an increase in central bank lending to banks, an increase in bank lending to firms and households, a purchase of government bonds by the central bank

A6) Finance Today there is a clear consensus about the best way to design a central bank. What are the criteria for a successful central bank?