How can changes in foreign exchange rates affect theprofitability of financial institutions?

Q: If a commercial bank were to borrow funds from the ECB, in terms of a loan, how would this affect…

A:

Q: Describe the difference between financial markets and financial intermediaries? How can your funds…

A: Monetary business sectors and Financial go-betweens are two channels through which the monetary…

Q: Is Islamic banking meant to replace global financial system or the two systems may go parallel?…

A: The vision of Quaid-e-Azam Muhammad Al Jinnah is embodied in Meezan Bank in several ways.…

Q: Explain the role of commercial bank in an economy!!

A: According to the given question A commercial bank is considered as an bank which plays an…

Q: What are the four major accounts in current assets?

A: The products which are conveniently solid, consumed or exhausted through the use in standard…

Q: Explain with examples that how mortgage contributes towards development of financial markets in…

A: Mortgage is a type of loan which provided by lenders or bank to buy property or houses. It has very…

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: WHAT IS THE IMPORTANCE OF BALANCE OF PAYMENT IN OUR ECONOMY?

A: Balance of Payment account of the economy records the transactions of goods and services  between…

Q: What is a liquidity crisis?

A: Answer: Liquidity: liquidity refers to the ease at which the assets can be converted to cash.

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: 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: Which of the following regarding Exchange Traded Funds (ETFS) is(are) correct?

A: Exchange Traded Fund: It refers to the open-ended investment that is being done in exchange and it…

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 are non-banking financial companies valuable to the financial system? Elaborate all the…

A: India's financial administration's area is colossal. It doesn't simply contain business banks yet in…

Q: Questions: how cryptocurrencies are affecting the world's economy?

A: Cryptocurrency is a type of asset which is digital and is designed particularly to work as a medium…

Q: Which Government/non-Government institutions are involved in regulating the financial system of…

A: Pakistan’s financial system comprises banks, Microfinance banks(MFBs), NBFCs, Development Finance…

Q: Distinguish between IMF and Word Bank?

A: The world bank and the international monetary fund (IMF) were founded in July 1994 in the Bretton…

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: 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: Why is paying interest on reserves an important tool forthe Federal Reserve in managing crises?

A: Interest on Reserves (IOR) refers to the interest rate paid by the Federal Reserve to commercial…

Q: Financial intermediaries are firms that: match buyers and sellers of bonds. conduct open market…

A: Financial intermediaries are a bridge between savers and borrowers.

Q: Why is it so important to an economy to have fully developed financial markets?

A: Financial markets are those markets in which creation and trading of financial assets take place .…

Q: From the IMF Working Paper about Global Financial Crisis briefly explain one of the alternatives: a)…

A: b)Financial integration and interconectedness To recover from global financial crisis,IMF has…

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: What are the different Financial Intermediaries and explain how they carry out the objectives of the…

A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to…

Q: List the main function of investment banks in the financial system?

A: Investment banks are the banks that help startup companies to launch. It acts as an intermediary…

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: Is Micro Credit the model solution to international banking?

A: The definition of microcredit differs depending on the nation. Microcredit, on the other hand, is…

Q: e) What happens when the bank issues N loans with N0 and each investor acquires a share of 1/N in…

A: The term loan alludes to a sort of credit vehicle where an amount of cash is loaned to one more…

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: What is importance of financial markets for the productive capacity of the economy?

A: The economies work with the motive of increasing, or enhancing their overall economic growth, and…

Q: What factors explain the rapid growth of internationalbanking?

A: International Banking refers to banking that has a presence across the international borders. It is…

Q: why does selling bonds by the Treasury to the financial market raise interest rates

A: The monetary policy is the policy of the central bank regarding the money supply and interest rate…

Q: Why is a capital market needed when there is a banking system in the financial market? Explain?

A: Capital market provides the platform for the exchange of stocks, debentures and the securities. The…

Q: fective functioning of a deve

A: The market which deals in loans for the short term which is for a period of a year or less generally…

Q: What do you think were the main causes of the Financial Crisis?

A: In a financial crisis, asset expenses see a steep decline in price, companies and customers are…

Q: How do we restore confidence in the financial and banking industries and our political systems?

A: Introduction: The Industrial Revolution was one of the most significant events in human history,…

Q: Investment accounts operated by Islamic banks are based on the concept of: Select one: O a. hibah O…

A: Islamic finance is a type of financing activities that must comply with Islamic law which is knows…

Q: What is the purpose or importance of having higher net income of a central banks?

A: In an economy, Central Bank is the financial authority that is responsible to conduct monetary…

Q: Why are repurchase agreements used to conduct mostshort-term monetary policy operations, rather than…

A: The central bank's strategy on the application of financial tools within its supervision to meet the…

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.