Answered: If a particular fintech company is…

If a particular fintech company is likely to disrupt anyaspect of the country’s financial system, should thegovernment take steps to prevent it from doing so? Why orwhy not?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter14: The Financial Crisis And The Great Recessio

Section: Chapter Questions

Problem 1TY

See similar textbooks

Related questions

Q: Please draw two graphs The first graph showing the impact of higher corn prices on (consumers) expla...

Q: The required reserve ratio helps determine the amount of money banks can create

A: The loan is referred to the amount of money that the lender gives to the borrower and charge interes...

Q: Cal Tech Inc. manufactures video games for "The Play Station III". Variable costs are estimated to b...

A: GIVEN Q = 1,000 - 4P 4P = 1,000 - Q P = 250 - 0.25Q

Q: From the given news article, if the average price of gasoline is P60.26 iter and there will be a P2....

A: Percentage change measures the change in value divided by the absolute value of the initial value.

Q: Andrew and Ben own and live in condominium apartments in the same building. Ben's condo is directly ...

A: Given:Andrew ability to smoke marijuana inside his condo=$100 per monthBen value fresh air in his co...

Q: Among the properties of the inequality indices, we have seen the Pigou Dalton principle. Do You thin...

A: Pigou Dalton principle approach towards maximize the social welfare. It states that allocation in an...

Q: Which of the following is counted as part of the US GDP in 2019? Question 9 options: All cars t...

A: All cars include used cars as well so they were not produced in 2019. So not a part of GDP. Producti...

Q: Economic History of North America ) Discuss the role of the Hudson Bay Company in the fur trade?

A: In the British realm, the Hudson's Bay Company was founded in 1670. For the most of its history, HBC...

Q: Answer this question for me mate. Appreciate it. :)

A: A house inspection examines and reports on the condition of a real estate property, which is commonl...

Q: . Ignoring mixed strategies, does the following gam librium? Does it have more than one Nash equilib...

A: The Nash equilibrium exists where the one player takes the best course of action provided the strate...

Q: 3. Categories of expenditures Larry and Megan Smith live in Swarthmore, PA. Megan's father, Raphael,...

A: Aggregate demand is the sum of consumption, investment, government spending and net exports in an op...

Q: Do you think that you could consume less by refusingto buy some of the things you regularly buy? If ...

A: Consumption refers to the process by which people spend their income on the purchase of goods and se...

Q: In 1938, major powers met in Munich to discuss Germany’s demands to annex part of Czechoslovakia. Le...

A: Given information 2 countries Allies and Germany Allies has 2 strategy compromise and fight Germany ...

Q: Design a hypothetical ideal randomized controlled experiment to study the effect on highway traffic ...

Q: Essay (6-8 sentences, please): Define and contrast the 4 forms of capitalism 1. Neoliberal market ca...

A: 1) Neoliberal market capitalism:- Neoliberalism is a strategy program that integrates political econ...

Q: (Government Debt) The U.S. Treasury reports the budget deficit or surplus of the federal government....

A: Countries that can counter and affect a budget deficit, that is likely to promote and bring in the e...

Q: Scott deposited $1,000 at the end of every month into an RRSP for 8 years. The interest rate earned ...

A: This is the case of ordinary annuity for 8years but we need to calculate for first 4year and then fo...

Q: Course: Microeconomics - Theory of Production A field produces wheat. Land is a fixed factor, so the...

A: 1. Before we fill in the blanks in the table, we should know the definitions and relations between d...

Q: Suppose a monopolist faces consumer demand given by P=400 - 20 with a constant marginal cost of $40 ...

A: Consumer Surplus is the distinction between the value that consumers pay and the value that they wil...

Q: List and explain five reasons why the role of unions are becoming more important now than prior to t...

A: Government can use fiscal policy to increase employment by causing increase in aggregate demand. Now...

Q: A3 in the McCall partial equilibrium model, if unemployed individual can only live for 10 periods. I...

A: Depending on the situation, the discount rate has two alternative meanings and applications. The wo...

Q: Refer to the market demand and supply functions below: Qd =71,000 – 2,000P Qs = - 25,000 +25,000P Wh...

A: Given Market demand equation Qd=71000-2000P .... (1) Market supply equation: Qs=-25000+25...

Q: How is the merchandise trade balance calculated? O a. the total value of the economy's goods minus t...

A: Imports refer to the transfer of goods from foreign country to the domestic country in exchange for ...

Q: Which of the following is NOT a reason why the AD curve slopes downward? As the price level falls, n...

A: Aggregate demand shows a negative relationship between price level and real output of an economy.

Q: Discuss the four (4) basic aspects of globalization according to the International Monetary Fund (IM...

A: According to the IMF and the World Bank (among others), globalization is an irreversible force that ...

Q: Explain why understanding the cost curves and various types of costs is important for businesses mak...

A: The expenses that are being incurred for running a business and carrying out various transactions of...

Q: 2) What is oligopoly? And Monopoly? State two examples for which market structure in case of Pakista...

A: The market is a location where the transaction of services and commodities takes place. It is import...

Q: reimbursements programs such as (P4P or DRGs) to current value-based compensation programs can poten...

A: *ANSWER :- (1) From the given information the answer is given as follows.

Q: A company will be more enthusiastic in providing more training to its workers during an economic dow...

A: Training: Preparing is instructing, or creating in oneself or others, any abilities and information ...

Q: Examine the following table: Value of Exports (in billions) Value of Imports (in billions) Balanc...

A: Answer: Current account balance: it refers to the difference between the value of total credit and d...

Q: The production cost for a firm is given in the table below, calculate the marginal cost of producing...

A: Marginal cost is the additional cost of producing each additional unit of output. Marginal cost = (...

Q: In the Grossman model, the marginal efficiency of investment in health care declines as health impro...

Q: explain in your own words how several of theories connect for kids living in severely disadvantaged ...

A: Concentrated disadvantaged groups are underprivileged sections of society who live in certain areas....

Q: See the table here below: Labor Input: Tables and Chairs Production Country X Country Y Chair 2 Tabl...

A: Answer: Opportunity cost: opportunity cost refers to the production of one good sacrificed to produc...

Q: A couple decided that for every child that will be born they will place a deposit in the bank so tha...

A: Given the future value, FV = P300000 Present invested amount, PV = P15249.13 Time, n = 18 years

Q: b.) Governments are aware of the impact of Imports on their economy bu because they also want their ...

A: Six instrument of trade protection:- 1) Tariff:- Tariffs are among the earliest known instruments us...

Q: Which of the following statements about Macroeconomics is true: Both of the given options Studies th...

A: The statements can either be macroeconomic or microeconomics. Statements that examine the economy as...

Q: Consider the mean cost of getting a four-year college degree. The middle interval which captures 95...

A: In this question we have to find out the population mean cost of getting a college degree with the h...

Q: Consider the following version of the short run monetary model: MD/P = exp(-0.50*i)*Y (UK) MS = M i=...

Q: The ECU as a basket of currencies. What is the percentage/weight of the ECU's total value accounted ...

A: From the chart it is 5.4%. Yes, Since the value of each currency in ECU depends on its exchange rate...

Q: 1. Suppose a closed economy has national income of $50 million, Investment of $2 million, Inflation ...

A: Total tax rate= (Net tax rate+Rate of inflation)=(15+5)%=20% Total tax revenue=T= $(50*0.2) mil=$10 ...

Q: Figure 8 shows a price-taker firm with demand curve, D, a short run cost curve, AC, and marginal cos...

A: A perfectly competitive firm is a price taker. It means the price is determined by the market forces...

Q: Q. 14.21 Two firms are competing in an oligopolistic industry. Firm 1, the larger of the two firms, ...

A: Oligopoly markets are characterised by a small number of suppliers dominating the market. They can b...

Q: 3. ) Ball point pens are produced by a constant-cost industry made up of identical firms with standa...

A: Competition between firms generally occurs when the market consisted of multiple firms, The perfectl...

Q: Define nominal exchange rate and real exchange rate. What are the two main types of exchange-rate sy...

A: The exchange rate signifies the worth of one currency to a foreign currency. It is an essential rate...

Q: 5. The effect of external costs on the efficient level Consider the market for bolts. Suppose that a...

A: Social cost is the sum of private cost and external cost. External cost is 245 per ton.

Q: Supply Curve and give interpretations.

A: Supply and Supply Function : By supply it is meant that the amount of a commodity offered for sale a...

Q: Illustrate and explain what is meant by consumer surplus and producer surplus at market equilibrium....

A: Total surplus is defined as the total wellbeing of all the participants in a market. It refers to th...

Q: Question 6. Canada is a small open economy. Suppose that the Canadian government significantly incre...

A: A small open economy is an economy that participates in international trade but is small enough in c...

Q: Banks create money by O a. buying U.S. government securities with cash. O b. printing money up to th...

A: The central bank of the country is the apex bank that plays a major role in monitoring the money sup...

Question

If a particular fintech company is likely to disrupt any
aspect of the country’s financial system, should the
government take steps to prevent it from doing so? Why or
why not?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Predict what would happen to the risk premiums ofmunicipal bonds if the federal government guaranteestoday that it will pay creditors if municipal governments default on their payments. Do you think that itwill then make sense for municipal bonds to be exemptfrom income taxes?
Many would argue that the federal government’s response to the financial crisis of 2008 favored powerfully connected financial firms at the expense of the average citizen. Would you agree or disagree with this statement? Why? 2. Schattschneider argues that powerful groups and individuals can keep issues off of the policy agenda. Brainstorm some policy ideas that might have been kept off the agenda due to group or individual pressure. What policy issues do you believe have been kept off the agenda and what groups might have kept such policies off the agenda and why? Finally, do you believe that Schattschneider’s view ultimately has merit
(1) Why would a company’s financial managers wantto pay attention to the federal funds rate? (2) Ratherthan promising to support any too-big-to-fail banks,could the federal government instead simply warneveryone that doing business with one of these firmsis risky? Why or why not?
If monetary policy becomes more transparent about thefuture course of interest rates, how will stock prices beaffected, if at all?
Which of the following institutionsmay buy government bonds in BOTHthe primary and the secondarymarket, in most developed countries?a. foreign investorsb. large financial institutions with abundant liquidityc. corporationsd. the central bank
Suppose the U.S. economy began to grow morerapidly than other countries in the world. What would bethe likely impact on U.S. financial markets as part of theglobal economy?
Suppose you are in charge of the financial departmentof your company and you have to decide whether toborrow short or long term. Checking the news, yourealize that the government is about to engage in amajor infrastructure plan in the near future. Predictwhat will happen to interest rates. Will you advise borrowing short or long term?
The Bangladesh Bank has created additional money worth Tk70,794 crore through variousrefinance schemes and easing regulatory requirements after the Covid-19 outbreak in March forstimulating demand to revive the declining economy. (link:https://tbsnews.net/economy/banking/bangladesh-bank-creates-money-worth-over-tk70000cr-revive-economy-76435?fbclid=IwAR108OXKcbXq6JjZj6v9FbULrDtys_QsZySUTKeAmauoqTjppgnLqU89muw#.Xq5kdXhgRqq.facebook).Do you think creating this additional money will lead to inflation? What type of inflation,demand-induced or supply-induced? Do you think it will be continued inflation? Why? Draw arelevant diagram to explain your answer.
Explore the assertion regarding the state ofFinancial Markets, both globally and within the Caribbean region, evaluating whether they arecharacterized by market perfection or imperfection. Argue in favorthat markets are perfect , allowing for a comprehensive examination ofthe topic. To enhance the analysis of key points in the subject argument, it is imperative to employrelevant finance theories or concepts which either validate or refute the EMH. These concepts serveas a robust framework for understanding financial phenomena. By leveraging established concepts,one can systematically evaluate the evidence presented, thereby bolstering the argument'scredibility and depth.
The Bangladesh Bank has created additional money worth Tk70,794 crore through various refinanceschemes and easing regulatory requirements after the Covid-19 outbreak in March for stimulatingdemand to revive the declining economy (link: https://tbsnews.net/economy/banking/bangladesh-bank-creates-money-worth-over-tk70000cr-revive-economy-76435?fbclid=IwAR108OXKcbXq6JjZj6v9FbULrDtys_QsZySUTKeAmauoqTjppgnLqU89muw#.Xq5kdXhgRqq.facebook) What type of monetary policy is this? Expansionary or contractionary? Draw a diagram toexplain your answer.
The Minsky Model of a Financial Crisis . Economist Hyman Minsky believed “…the financial system in a market economy is unstable, fragile, and prone to crisis.” Explain in some detail how the financial system is “unstable, fragile and prone to crisis,” according to Minsky What did the psychological term euphoria mean to Hyman Minsky? In other words, define the term as Minsky would define it Briefly specify (but do not explain) the primary case against the market system of economic organization
Some economists think that central banks should try toprick bubbles in the stock market before they get outof hand and cause later damage when they burst. Howcan monetary policy be used to prick a market bubble?Explain using the Gordon growth model.