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FINANCE > CAPITAL MARKETS
What is fiat standard or fiat money? Under the fiat standard or fiat money, which of the money is used by the Central Bank to stabilize the circulation of money in a country?
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- FINANCE> CAPITAL MARKETS 1. What are the 2 classification of monetary standards and explain each. 2. Under the fiat standard or fiat money, which of the money is used by the Central Bank to stabilize the circulation of money in a country? 3. What are the types of liability. Explain each and give example.Which of the following is a tool that is used by the central bank to control the quantity of money? *a. gdpb. excess reservec. open market operationsd. government expenditure multiplierYou expect the Central bank to conduct expansionary monetary policy. What will be the impact on the following industries, would you recommend investing in them? : a) Gold mining b) Housing construction
- what is the defintion of money? Please define the concept and describe it key features, uses, strengths, weaknesses, and relevance to the evolution of finance and banking in the United States.c) How would economic transactions between suppliers of funds (e.g., households) and users of funds (e.g., corporations) occur in a world without financial institutions?How would economic transactions between suppliers of funds (e.g., households) and users of funds (e.g., corporations) occur in a world without financial institutions?
- How can monetary policies created by a central bank affect financial markets and financial institutions? Instructions: Answer in 2 sentencesWhat role do financial markets play in our economy and what is the relationship between financial institutions and financial markets?part-a: What is the difference between direct finance and indirect finance? part-b: What are the main institutions in the direct finance system of an economy? What are the main institutions that constitute the indirect finance system in a country? part-c: What are the sources of national saving in a closed economy? Does a government increasing taxes and / or social security transfers impact the amount of national savings in a closed economy? Why or why not? (Hint: Consider the savings identity for this question.) part-d: Where does the demand for loanable funds come from in a closed economy? How does a government adopting a policy of taxing investment from the private sector impact the demand for loanable funds? What happens to the equilibrium interest rate following this policy? Illustrate using the supply and demand in the market for loanable funds.
- Which of the following is not a function of a Central Bank? Question 19Answer a. To regulate the issue, supply and availability of money. b. To manage the foreign exchange reserves. c. To advise government on monetary and fiscal matters. d. To manage the public and private debt in the country.Which of the following is a matured money market instrument widely used in the USA, Europe and Asia where both cash and securities are the motivators? a. Commercial Papers b. Treasury Bills c. Repurchase Agreements d. Certificate of DepositsWhich of the following is NOT usually associated with “financial risk”? a. A rise in the country’s interest rates. b. A new government has been voted in. c. Fluctuation in a country’s currency. d. Difficulty in accessing funds from banks.
