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- Give the cash reserve requirement Cr of 20% initial client's deposit of ish.500,000 and assuming all financial transactions take place in banks. (I).Use 3 banks to demonstrate how commercial banks create credit (II) compute the final and actual deposits.Discuss how the national credit act deals with information held by the credit bureauxWhat regulations appear to allow a central bank's attempts to restrict the quantity of lending by banks by applying specific controls to be evaded by banks seeking alternatives outside of the regulatory preview?
- The degree to which the public believes the central bank's announcements about future policy is its credibility. transparency. openness. O reputation. < PreviousWhen regulators engage in macroprudential regulation, they focus on O the safety and soundness of the entire financial institution. O the credit standards of all loans held by the financial institution. O the safety and soundness of the financial system in aggregate. O the safety and soundness of cach liability of the financial institution. ABank regulation exists because public authorities are convinced that a. the balance between public interest and safety does not affect profitability, and should be removed from the hands of managers. b. the balance between bank safety and public interest can best be obtained by reliance on the market. c. the balance between bank profitability and public interest cannot be handled with legislation, but can be handled with regulation. d. the balance between bank profitability and safety cannot be left to profit-maximizing managers.
- Discuss the meaning of the main concepts related to mortgage securitization: MBS, CDO, and CDS. Explain their role in the lead up to the global financial crisis (GFC).RTFQ Consider TOBITC's Balance Sheet $2,500 Reserves $30,000 Deposits $2,500 Bonds $40,000 Loans to customers To meet their R/R, the Bank could do all of the following Except... Borrow from the Fed at the Fed Funds Rate Call in Loans Borrow from another bank (for this question you can assume there are other banks) Sell some of their Bondswhat is the purpose of the national credit act