Explain what is meant by Creation of NPAs as a challenge faced by financial system

Q: Some economists suspect that one of the reasons economies in developing countries grow so slowly is…

A: The financial markets are the markets where the financial institutions help to channelize the flow…

Q: Why do banks choose to securitise their assets? Explain how securitisation may exacerbate the…

A: Answer -      Securities :- These are a financial instrument which has non-negotiable and has…

Q: Explain the process of securitisation and discuss its role in the 2008 global financial crisis

A: Securitization is the method of converting the receivables of the financial institutions, i.e.,…

Q: What technological innovations led to the developmentof the subprime mortgage market?

A: The subprime loan market is a market that serves individuals with questionable or limited credit…

Q: Explain how financial intermediaries reduce a. Adverse selection; and b. Moral hazard.

A: Adverse selection- Adverse selection usually refers to a condition in which sellers have information…

Q: Define Financial Intermediaries. Give two examples.

A: The economic activities include many such activities like insurance, transactions, dealing,…

Q: How has the COVID-19 pandemic affected the operations/performance of specific financial…

A: Coronavirus has brought the world into a state of crisis. The economy loses its equality and cannot…

Q: Explain why emerging market economies is important in financial markets?

A: Financial markets represent the marketplace in which the buyers and sellers trade various financial…

Q: Explain the following statements: "(1) individual financial institutions will generally have…

A: Financial institutions are also known as banking institutions which provides intermediary services…

Q: Explain potential conflict of interest in the operational structure of systematically important…

A: In the mentioned question we have been asked what are the conflicts of interest in operational…

Q: ancial institutio

A: At the large financial institutions,compensation practices were considered to be a key contributing…

Q: Discuss how the above risk can be managed by commercial bank.

A: Risk management of the board in banking is hypothetically characterized as "the consistent turn of…

Q: List any six categories of factors that could cause a financial crisis.

A: Since , financial crisis in a economy is a situation where  the value of the assets fall drastically…

Q: Suppose that after a few mergers and acquisitions, onlyone bank holds 70% of all deposits in the…

A: Yes, this would be considered as a big fail because deposits in one bank would lead to monopoly of a…

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: Discuss the role of government in financial intermediation. Do you think government must be a player…

A: The primary goal of financial intermediation is to facilitate funding between savers and borrowers.…

Q: Which bank management responsibility is defined as reducing the bank's exposure to dramatic swings…

A: The process of assessing, discovering, and controlling threats to an organization's profitability…

Q: Explain the role of financial innovation and the role of regulation in the generation of a financial…

A: A financial system consists of legal rules, firms, and markets, with the financial firms including,…

Q: Explain potential conflict of interest in the operational structure of systematically important…

A: i) Conflict of interest In a conflict of interest, a person or organization has numerous interests…

Q: EXPLAIN DYNAMICS OF FINANCIAL CRISES

A: In the financial crises, resource costs see a precarious decrease in worth, organizations and…

Q: How does a general increase in uncertainty as a resultof the failure of a major financial…

A: Adverse selection refers to the problem where bad credit risks are more eager to take the loans and…

Q: How the lemons problem could cause financial markets to fail? Explain it with using your own words,…

A: In perfectly competitive markets, the information is equally shared by the economic agents-…

Q: Explain what is the function of the following components in a country's financial system.…

A: A system that in turn allows fund exchange between market participants including investors, lenders,…

Q: What can emerging market countries do to strengthenprudential regulation and supervision of their…

A: The market of a growing country that gets further active with foreign markets as it expands is an…

Q: Explain why the existence of financial institutions can allocate financial resources better!

A: Good financial sectors mean banks and financial institutions have a major role to play in the health…

Q: Analyze and discuss the entire Philippine financial system, specifically the banking and non-banking…

A: Answer - Need to find- Analyze and discuss the entire Philippine financial system, specifically the…

Q: Financial liberalization is eliminating various forms of government intervention in financial…

A: The liberalization refers to the process of reducing the government intervention in the economic…

Q: Explain the reasons for the emergence of financial crises in the world and what measures were taken…

A: Concept of Financial Market Asset prices plummet, firms and individuals are unable to pay their…

Q: Would you recommend the adoption of a system ofdeposit insurance, like the FDIC in the United…

A: No, i would not recommend the adoption of a system of deposit insurance, like the FDIC in the United…

Q: Question 91 Economies of scale enable financial institutions to OA) avoid adverse selection…

A: Economies of scale alludes to the peculiarity where the typical expenses per unit of result decline…

Q: Explain on how the BASEL III affected the financial institution to the country generally?

A: Basel III is a 2009 international regulatory agreement that established a set of measures aimed at…

Q: 24. Financial institutions that cut back on their lending are engaged in A) liability management B)…

A: In an economy, lending refers to transferring excess funds of an individual or institutions to the…

Q: “In a world without information costs and transactioncosts, financial intermediaries would not…

A: Financial intermediaries are institutions that connect the borrowers and lenders by acting as the…

Q: Provide a detailed analysis of the impact of informational asymmetries on financial markets and the…

A: The situation when one among the two parties tends to possess more information as compared to the…

Q: Give two examples each of revenue eceipts and capital receipts in a financial pudget.

A: According to the given question Financial budget in economics is known as a budget which predicts…

Q: What are the legislation and regulatory changes thathave driven the changes in the services of the…

A: Maintaining financial sustainability and the security of customers are the core priorities of…

Q: Explain the functions of financialintermediaries?

A: Financial intermediaries is a person or organization that connects two different parties for…

Q: What is Supplies of Liquid Funds? What are Laws Limiting Bank Lending and Risk?

A: Liquid funds are mutual funds that invest in assets having a residual maturity of up to 91 days.…

Q: Câu 2: Assignments CAR is a measurement of a bank's available capital expressed as a percentage of a…

A: A bank is an institution that provides the facility for loans and deposits. It means as the bank…

Q: What challenges faced by the financial services commission of Jamaica

A: Jamaican financial services commission faced a huge financial crisis.The main cause of the Jamaican…

Q: Explain the money market debt securities and capital market debt securities

A: The financial markets in an economy are the money markets and the capital markets. The money market…

Q: Identify several different types of financial institutions, and describe the main services these…

A: Answer:- Different types of the financial institution and main services of this institution offers…

Q: Summarize thechanges to financial regulation thatoccurred in responseto the global financialcrisis…

A: Consumers,banks and the government contributed to improper lending and borrowing of funds which in…

Q: The 2016 elections in the United States Multiple Choice led to resistance to Dodd-Frank becoming…

A: In the political election of 2016 of the United States, Donald Trump won the leadership against Dodd…