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In 2020, the whole world banking sector including Pakistan has gone through the most unexpected and uncertain era. Do you think in 2021, the current policies of state bank of Pakistan can revive the banking sector of Pakistan?
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- In the current pandemic situation, State Bank of Pakistan lower the interest rate (KIBOR) from13.75% to 7%. How this change could help to revive the economy? What other monetarypolicy measures could be taken by state bank of Pakistan in this situation?Evaluate the similarity of risks that face both conventional banks and Islamic banks in 2020 and 2021How Did the Government Respond to the Banking Crisis of 2023? add source.
- What have we learnet from Asia Financial Crisis 1997? In the future, How to prevent this crisis?The International Monetary Fund, the IMF, has forecasted that the global economy is likely to experience a contraction of 3% in 2020, due to the ravages of the COVID-19 pandemic on both developing and advanced economies. Investors believe that The Deutsche Bundesbank, the central bank of the Federal Republic of Germany, will employ direct foreign intervention strategies in the future, to minimize the economic fallout and increase the volume of exports. Assume the following information: 1 - year U.S. interest rate = 3% 1- year German interest rate = 6% Spot rate of euro = $1.09 Compute the profit and yield to the investor who stands to benefit from covered interest arbitrage.The International Monetary Fund, the IMF, has forecasted that the global economy is likely to experience a contraction of 3% in 2020, due to the ravages of the COVID-19 pandemic on both developing and advanced economies. Investors believe that The Deutsche Bundesbank, the central bank of the Federal Republic of Germany, will employ direct foreign intervention strategies in the future, to minimize the economic fallout and increase the volume of exports. Assume the following information: 1 - year U.S. interest rate = 3% 1- year German interest rate = 6% Spot rate of euro = $1.09 Draw a diagram to illustrate your understanding of the relationship between interest rate parity and covered interest rate arbitrage and the interplay of market forces that will occur to eliminate arbitrage opportunities.
- Since the collapse of the Bretton Woods agreement in the 1970s the IMF & World Bank have played an important role in stabilizing the financial markets around the world. Are they effective in that role today especially in light of the 2008 financial meltdown - could it happen again?As a member of the FOMC, the U.S. economy is entering a recession with a high rate of inflation. Write a directive to the committee about the conduct of monetary policy over the next two months. At the meeting, the committee will respond to changes in economic prospects as needed to support the attainment of its objectives. Your directive may address a target for the GDP growth rate, the federal funds rate, and the rate of inflation. Be sure to make specific proposals. Indicate why your recommendations will work.6) Suppose that the European central bank increased money supply right after you bought the European financial assets. How that change might aff ect the expected return you will get at the end of the period as an American investor? (Use graphs)
- The Bank of England’s Monetary Policy Committee raised interest rates to 3.5 per cent on December 15, 2022 while governor Bailey declaring that “inflation has reached its peak”. What was the immediate impact of this action on financial markets? You have been given £10 million on December 16 to build an optimal portfolio in current market conditions. What would you be investing on, how much on each financial instrument and why? Explain your strategy in detail. Direct and indirect investment are all allowed. No cryptocurrency.The Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to reduce the Overnight Policy Rate (OPR) by 25 basis points to 2.50% on the 3rd of March 2020. The reduction in the OPR is intended to provide a more accommodative monetary environment to support the projected improvement in economic growth amid price stability. BNM will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation. The reduction in the OPR came largely in line with economists’ expectations. This is the second cut so far this year. In January, Bank Negara reduced the OPR by 25 basis points to 2.75% -- the lowest since 2011. Two years ago, Malayawata Steel issued RM 100 million worth of ten-year bonds with a face value of RM1,000.00 and a coupon rate of 5%. Coupon payments are made semi-annually. Two years ago, the market yield-to-maturity was 3% pa. Due to the increased insecurity facing the industry, the market yield to maturity is now 7% p.a.…The Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to reduce the Overnight Policy Rate (OPR) by 25 basis points to 2.50% on the 3rd of March 2020. The reduction in the OPR is intended to provide a more accommodative monetary environment to support the projected improvement in economic growth amid price stability. BNM will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation. The reduction in the OPR came largely in line with economists’ expectations. This is the second cut so far this year. In January, Bank Negara reduced the OPR by 25 basis points to 2.75% -- the lowest since 2011. Two years ago, Malayawata Steel issued RM 100 million worth of ten-year bonds with a face value of RM1,000.00 and a coupon rate of 5%. Coupon payments are made semi-annually. Two years ago, the market yield-to-maturity was 3% pa. Due to the increased insecurity facing the industry, the market yield to maturity is now 7% p.a. a)…
