a. "A robust financial market is one of the pillars of stable economic growth and secured financial sustainability for the future." Discuss. b. Why do managers of financial institutions care so much about the activities of the Central Bank?
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- a. “A robust financial market is one of the pillars of stable economic growth and securedfinancial sustainability for the future.” Discuss. b. Why do managers of financial institutions care so much about the activities of the Central Bank?1. a robust finacial market is one of the pillars of stable economic growth and secured financial sustainability for the future 2. Why do managers of financial institutions care so much about the activities of the centrala. “Financial intermediaries play a crucial role in an economic crisis–they are responsible for both causing the market to crash and then helping it recover from the crisis.” Is this statement true? Discuss with an example. b. Discuss the role of banks as financial institutions that fuel the economic growth of a nation.
- The role of the financial system is crucial and significant to the economy. There are several components in the financial system, of which each plays fundamental roles, in supporting the continuing growth of the economy. Central Bank is one of these components. Based on the above, you are to identify, explain and justify the value propositions of the financial institutions of the financial system, in supporting the efficiency and stability of the financial system: - Central Bank In strengthening your explanation and justifications, do support them with the related and relevant examples and/or financial transactions.Describe how financial intermediationand financial innovation affect bankingand the economyWrite an introduction about the importance of stability in the financial system, and the importance of the central bank and financial institutions in achieving it. Explain briefly.
- Discuss the following statements: “(1) individual financial institutions will generally haveunimportant effects on market prices or the economy as a whole and (2) serving theirfinancial interests always safeguards stability of the financial system” according toWhich of the following can be considered as financial institutions in a good financial system? a. Treasuries b. Stock Exchanges c. Banks d. AllHow does the financial market facilitate corporate finance and investment management needed?
- In which economic conditions would a central bankwant to use a “forward-guidance” strategy? Based onyour previous answer, can we easily measure the effectsof such a strategy?How do you think financial institutions help financial market to work?What role do financial markets play in our economy and what is the relationship between financial institutions and financial markets?