How does a Loan to Value Ratio (say an 80% LVR limit) achieve the objectives of Macro-prudential policy? Prove explanations in detail with an example
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How does a Loan to Value Ratio (say an 80% LVR limit) achieve the objectives of Macro-prudential policy? Prove explanations in detail with an example
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- Is either helicopter money or quantitative easing preferred in times of severe recessions in order to boost economic activity? Explain your reasoning.Why did the UK keep using quantitative easing in February 2021?(Pros and cons)Discuss the following statements: “(1) individual financial institutions will generally have unimportant effects on market prices or the economy as a whole and (2) serving their financial interests always safeguards stability of the financial system” according toa) microprudential b) macroprudential approaches?
- Why aren't more resources being allocated to sufficient prudential oversight of the financial system in order to rein in excessive risk-taking, when it is evident that such monitoring is necessary to avoid financial crises?Why aren't more resources dedicated to ensuring adequate prudential oversight of the financial system, given that it's clear that such monitoring is necessary to forestall financial crises?As macroprudential policy is always in sync with monetary policy, a mix of both policies can be used at all times to deal with inflation pressures or financial stability pressures. True or False? Can you explain a little bit? Thank you!
- What regulations appear to allow a central bank's attempts to restrict the quantity of lending by banks by applying specific controls to be evaded by banks seeking alternatives outside of the regulatory preview?The financial system in Jamaica has been the subject of much attention since the news broke of the alleged fraud at Stocks and Securities Limited (SSL). The governor of the Bank of Jamaica (BOJ) has been fielding calls from concerned investors, international financial institutions, and even other regional regulators concerning the impact of this situation and the negative media reporting would have on the stability of the financial system in Jamaica and the Caribbean region.The governor would like to preserve confidence in the financial markets and institutions and has decided to embark on a series of educational “road-shows” where he will address targeted stakeholders such as the American Chamber of Commerce (AMCHAM), investor groups and the media.In this regard, the governor has assigned your team of senior professionals employed at the Bank of Jamaica to prepare a presentation slide deck for his address. Give an overview of the structure of the Jamaica financial systemThe role of…In Pakistan there is currently a pensions crisis because the government did not plan pensions of public sector employees efficiently. Instead of raising funds from lifetime earnings of employees, and giving pensionsas returns on savings, pensions currently require budgetary allocation in Pakistan, leading to financial burden on government. In developed countries like the US, where people plan their own pensions this planning for retirement requires a lot of effort, forward thinking and knowledge of financial opportunities. Even then pensions are never completely secure in the US.So, this system is not entirely suitable in Pakistan. Examine the Pension Crisis from perspective of Permanent Income Hypothesis and its modern versions to explain the possible causes of this crisis. Related to causes in part I suggest solutions to the pension crisis in Pakistan
- What is quantitative easing? Who uses it? How and for what purpose? When has it been used in the past?When discussing the benefits of FHA, mortgage insurance volume typically increased during strong economic periods (i. e., growth). True FalseWhat is the best explanation of liquidity premium? What is suggested by an upward sloping yield according to segmented market theory? Explain