Discuss the role of banks as financial institutions that fuel the economic growth of a nation.

Q: Why are the US interest rates, the Fed Funds rate and Treasury Securities interest rate so important…

A: A global market is a place for the open economies to make a transaction with the rest of the world,…

Q: in the role of commercial banks in an economy?

A: Macroeconomics refers to the economics that deals with the structure, decision-making performance as…

Q: Discuss the role of banks as financial institutions that fuel the economic growth of a nation.…

A: Different roles of Financial Institutions in an economy are as follows: Banking/ Insurance…

Q: Explain Globalization and Financial Markets

A: Economics: Economics aspects is the sociology that reviews how individuals' interface with esteem,…

Q: Why do you think the real interest rate was low during the recession in the mid-1970s and during the…

A: In the recession, the economic activities such as production and spending starts falling, the…

Q: Please discuss the following. 1. Financial markets are institutions and systems that facilitate…

A: The term "financial market" refers to a place or platform where stocks, bonds, currencies, and other…

Q: Which of the following was an underlying cause of the economic crisis of 2008? a. The imposition of…

A: Conventional lending standards had started to erode since the 1990s.

Q: With relevant examples, discuss the functions of a financial market.

A: Functions of a financial market #1 – Price Determination  The financial market plays out the…

Q: Several European countries suffered from financial crises at the same time as the U.S. Match each…

A: Unemployment refers to those who are employable but can't find work. Those in the workforce who are…

Q: Enlist the main points that how the central bank of a country plays its significant role in the…

A: The central bank of a country plays an integral role in maintaining economic stability and inducing…

Q: Briefly explain the benefits of having a thriving capital markets even in an economy like India…

A: Capital market is a platform where organizations enter as a borrower because they need money to…

Q: What is the most important way for an economy to recover from an economic crisis caused by credit…

A: Credit denotes a loan, while credit growth denotes the taking of more loans. Credit expansion is the…

Q: A country reduces its government budget deficit and also makes political reforms that lead people to…

A: If a country is having a lower deficit then its demand for funds falls to cover the deficit. This…

Q: Explain, using examples, why financial crises have different causes in emerging economies compared…

A: Developed economy: An economy is considered to be a developed one where exist a sovereign state with…

Q: Which of the following is not a primary participant in the financial marketplace? a.  governments b.…

A: A financial market is a place where stocks, bonds, and money are exchanged.

Q: Why should policies to recover from financial crises be in emerging market countries different from…

A: In case of a financial crisis, the prices of different assets drop and the companies and individuals…

Q: What are the main functions of banks? Explain the role played by commercial banks in the economic…

A: Function of commercial banks:-  Primary Functions 1) Accepting deposits:- Primary function of…

Q: Discuss the financial system of the Philippines as a whole and site its importance

A: A financial system is made up of a range of institutions, markets, and financial instruments that…

Q: Discuss the flow of funds and the flow of financial instruments in the financial system.

A: A financial system refers to a set of financial institutions that include banks, stock exchanges,…

Q: The total assets of commercial banks in 2018 amounted to about Multiple Choice three times nominal…

A: GDP: The GDP or the gross domestic product can be defined as the value of the final goods and…

Q: How can a bank or other financial institution help American businesses to compete in the global…

A: Banks and financial institution is a depository institution and intermediary to provide loans.

Q: Explain how (i) open market operations (ii) reserve requirements and (iii) the discount rate can be…

A: Monetary policy: These are the policy measures that are being taken by the central bank of a country…

Q: European banks began with which of the following? a) Monarchs were the first bankers, lending out…

A: A bank is a financial institution licensed to receive deposits and make loans.

Q: A healthy and constantly evolving financial system is the foundation for economic efficiency and…

A: Financial markets : Financial markets (such as those that trade stocks or bonds), instruments (from…

Q: Imagine that you wish to launch a start-up online business. You do not have enough capital…

A: Islamic banks are based on Islamic laws which imply principles of Islamic finance and banking have…

Q: Many countries have policies that limit how much interest a moneylender can charge on a loan. Do…

A: Interest rate is considered as the borrowing cost because the person who is borrowing money has to…

Q: Pangea has $ 500 billion in National Savings and $ -100 billion in Public Savings. What is Pangea's…

A: According to the national income accounting-National saving is equal to the income that remains…

Q: How bank capital provides fund for growth?

A: The banking sector, as well as the definition of bank capital, plays an important role in the…

Q: A country reduces its government budget deficit and also makes political reforms that lead people to…

A: With the reduction in the government budget deficit, the interest rate would also go down.…

Q: What are the financial institutions that make up our banking system? Briefly describe their role…

A: The financial institutions that make up our banking system along with their role is mentioned below:…

Q: Savings, Investment, and the Financial System - End of Chapter Problems 1. Given the following…

A: Given – GDP = $1400M , T = $310M , C = $840M , G= $280M (M=million)For closed economy:GDP = C + I +…

Q: Discuss briefly how households, businesses, and the government of an economy are connected through…

A: Financial markets, as the name implies, are a form of marketplace that allows you to sell and buy…

Q: How is physical capital related to financial capital?

A: Physical capital refers to the tangible goods that are produced by the company.  Examples raw…

Q: A less developed country will A. most likely be deficient when it come to funds, thus it is always…

A: A less developed country (LDC) has the following characteristics High population growth Inadequate…

Q: Explain how financial market mobilizes money and wealth creation opportunity within a country.

A: Financial market mobilizes money through a well developed process and bringing over the smooth…

Q: seven major financial institutions

A: Financial institutions today help the economy to lend, distribute and borrow money for various…

Q: What is the financial system, Name and describe two markets that are part of the financial system in…

A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…

Q: Institutions that help to channel funds from savers to borrowers are known as a) corporations. b)…

A: People do not consume their entire income rather they like to save a part of the income for future…

Q: Explain the link between well-performing financialmarkets and economic growth. Name one…

A: Financial markets are markets in which funds are traded from individuals with surplus funds to…

Q: Explain why you think that maintaining a well functioning financial system is important and suggest…

A: By collecting and combining cash from multiple sources, financial systems enable the transfer of…

Q: Imagine a scenario in which there is a decreased consumer confidence in domestic financial systems.…

A: Keeping money in foreign financial institution will reduce the money available in domestic country.

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.