How does drawing on collective immunity work the same as a person drawing funds from a financial institution?

Q: Factors that affect the entire economy and all its participants can be associated with External…

A: The macro-environment relates to how a corporation's or industry's performance is influenced by the…

Q: Which of the following is true? Bitcoin is backed by gold and governments, and seemingly appeared…

A: Bitcoin is backed by gold and governments, and seemingly appeared "out of thin air" as the result of…

Q: Lowering the taxes on income can help in expanding the activities in the financial market.  True or…

A: Tax in the compulsory payment made by the individual or institution to the government without…

Q: Explain the concept of restrictive covenants. When and why do they apply?

A: Restrictive covenants: When some property is bought and sold between parties then there is some…

Q: In a paragraph. Explain the tradeoff involved in determining the optimal length of intellectual…

A: Intellectual property protection is to provide property rights which means to preserve or protect…

Q: In 2008, as a financial crisis began to unfold in theUnited States, the FDIC raised the limit on…

A: FDIC or the Federal Deposits Insurance Corporation is a government regulatory body constituted in…

Q: What do the authors mean when they state that financial intermediaries can achieve economies of…

A: The financial intermediaries reduce the transaction cost when it increases the volume. When the firm…

Q: Explain the Efficient Market Classification and discuss its role in policy making

A: Market efficiency depicts how there can be a degree that can note how there can be market prices…

Q: How can an increase in net benefits to society be generated from the systematic destruction of fims…

A: The term " systematic destruction of firms leaving the market" signifies eradication of old firms…

Q: What happens when the "Tax Ratio" of the commercial banks in the positive figure?

A: The Tax Ratio is the most strong indicator of a person's tax efficiency. The tax ratio is the…

Q: In which form of business ownership is the principal-agent problem likely to be the greatest…

A: Business: An organization by which goods or services are sold for earning profit.

Q: How can the adverse selection problem explain whyyou are more likely to make a loan to a family…

A: Adverse selection is a situation where the seller has the information or knowledge about the quality…

Q: define Kutznet Paradox and explain

A: Simons Kuznet developed the Kuznets curve theory in the 1950s, and the theory claims that as an…

Q: Banks can lower the cost of information production by applying one information resource to many…

A: The expense of funds is a reference to the loan fee paid by monetary organizations for the assets…

Q: what is the makeup and purpose of the Federal Open Market Committee?

A: The  central banking system of United States is known as Federal Reserve System (FRS). The Federal…

Q: “Fat finger” trades are sometimes blamed as the cause of “flash crashes” in financial markets. What…

A: What is a Flash Crash?  A flash crash can be defined as an occasion in electronic protections…

Q: Is an economy both social and a financial system?

A: An economic system, also known as an economic order, is a method of producing, allocating resources,…

Q: Imagine that you own your business. Imagine further that you or your consumers face an asymmetric…

A: a)Assymetric information is a problem where consumers face the problem of assymetric information.In…

Q: What is the main purpose of financial regulation? What kind of instruments may a government use to…

A: Financial Regulation : Financial Regulation can be defined as a form of regulation, laws or rules…

Q: Indirect interlocks permit two board members of different corporations to sit on each other’s boards…

A: Interlocking directorates is a corporate practise in which a member of one firm's board of directors…

Q: 53. Which of the following scholars argues that when the government restricts freedoms during a…

A: Which of the following scholars argues that when the government restricts freedoms during a crisis,…

Q: Briefly explain how information asymmetry and the hold-up problem can lead to vertical integration?

A: The following problem has been solved as follows:

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: Could you explain more on how could it provide a better protection on the interest of individual's…

A: A Deed of Mutual Covenant and Management Agreement in short is DMC that controls the rights and…

Q: Why is it a good idea for macroprudential policies torequire countercyclical capital requirements?

A: Macro-prudential policies are policies being financial by nature.

Q: Illustrate the Sharia Rulings of Mudarba and explain how the profit is distributed in Islamic Banks…

A: Under Islamic finance, a Mudarba contract is between the investor offering the investment…

Q: How do economists define equilibrium in financial markets?

A: The price is the difference between what providers receive and what demanders pay in any market.…

Q: Can a financial market be complete and allow for arbitrage opportunities at the same time?

A: Arbitrage is a speculation technique where a financial backer all the while trades a resource in…

Q: 5. Give at least four (4) ways the Global Financial Crisis of 2007-2008 could have been protected.

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: Explain why repurchase agreements (repo) and securities are used as a lending practice  in capital…

A: For government securities dealers, a repurchase agreement is a type of short-term financing. When a…

Q: s privatization beneficial to national interest?

A: An economy that does not trade is known as a closed economy. An economy where all the important…

Q: Henry Manne notes that a policy making it easy to fight off hostile takeovers would dilute:…

A: When a corporate business purchases another company due to many reasons like acquisitions, mergers,…

Q: Why is the more recently emerged security-industrial complex detrimental to achieving justice

A: The overcrowding of our nation's jails is one of the most challenging concerns facing our criminal…

Q: what are four reasons why it is necessary to regulate banks, within the context of the COVID…

A: Explanation: 4 reasons why it's necessary to regulate banks during the Covid-19 pandemic :      1.…

Q: Reasons money appear as non-neutrality? Explain.

A: Neutrality of money explains about the concept that money is considered to be a neutral factor in…

Q: Which economic concept most closely relates to the legal concept of justiciability? economies of…

A: Justiciability is the condition where the benefit of a person does not cause injustice for the other…

Q: An efficient financial market means transaction costs.  True or False?

A: Transaction costs are the costs associated with purchasing or selling a product or service.

Q: Under what circumstances money may appear as non-neutrality??? Can you explain to me?

A: In an economy, money plays a significant role in influence the market factors, but it might affect…

Q: The government safety net creates ________ problem because risk -loving entrepreneurs might find…

A: Government safety net refers to the phenomenon in which a guarantee is given by the government that…

Q: Homework (Ch 26) 1. Financial institutions in the U.S. economy Suppose Kenji would like to use…

A: Company k would like to use $2000 of his saving to make a financial investment by purchase stock or…

Financial Institutions and Federal Bank

The word financial institution is a kind of business organization that deals with the financial activities of a nation. These activities include accepting deposits, making payments, granting loans and advances, transferring funds, holding shares, providing credits, purchasing and selling foreign exchanges, investments in shares, futures commodities, and many more.