please answer with expl MATCH65.66.67.68.69.70.71.72.73.Claim on issuers future income or assetsConnects savers with borrowersAccepts DepositsBuyer of CapitalCost in goods from borrowingGovt spending and taxes to affect economyDeal in short-term debt instrumentsConsumes less than their incomeHas Intrinsic Valuea. Central Bankb. Financial Securityc. Commodity MoneyInterest rated.e.f. Commercial BankInvestment BankFinancial Intermediaryg.h.Saveri. Nominal Interest Ratej.Real Interest RateFiscal Policyk.1. Monetary Policym. Investorn. Financial Marketo. Money Market

Monetary policy is the use of monetary tools by a central bank or other monetary authority to…

MATCH 65. 66. 67. 68. 69. Claim on issuers future income or assets Connects savers with borrowers Accepts Deposits Buyer of Capital Cost in goods from borrowing a. Central Bank b. Financial Security c. Commodity Money d. Interest rate e. f. Commercial Bank g. Investment Bank h. Saver Financial Intermediary

MATCH 65. 66. 67. 68. 69. Claim on issuers future income or assets Connects savers with borrowers Accepts Deposits Buyer of Capital Cost in goods from borrowing a. Central Bank b. Financial Security c. Commodity Money d. Interest rate e. f. Commercial Bank g. Investment Bank h. Saver Financial Intermediary

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 30P: A mortgage 105m is a loan that a person makes to purchase a house. Table 19.11 provides a list of...

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A mortgage 105m is a loan that a person makes to purchase a house. Table 19.11 provides a list of the mortgage interest rate for several different years and the rate of inflation for each of those years. In which years would it have been better to be a person borrowing money from a bank to buy a home? In which years would it have been better to be a bank lending money?
Consideraneconomycharacterisedby: C=500+0.8(Y−T) I=400−120r+0.1Y G=300 T=0.25Y L(r,Y)=Y−300r M/P=600 whereC,Y,I,G,T,r,LandM/P,denoteconsumption,output,investment, governmentspending,taxes,theinterestrate,liquiditypreferencesandthereal moneysupply,respectively. •DeriveexpressionsfortheISandtheLMschedulesandplotthetwocurves. •Findtheequilibriuminterestrateandtheequilibriumlevelofincome. •DerivetheKeynesianmultiplierandcommentitspropertiescomparedtothe standardcase. •CalculateandinterprettheeffectsonYandrofanincreaseofmoneysupply thatbringM/Pto1200
• Suppose that a person’s wealth is $50,000 and that her yearlyincome is $60,000. Also suppose that her money demand functionis given by Md = $Y10.35 - i2Derive the demand for bonds. Suppose the interest rate increases by 10 percentage points. What is the effect on her demand for bonds?What are the effects of an increase in income on her demand for money and her demand for bonds? Explain in words
Give only typing answer with explanation and conclusion If a bank expects interest rates to go up in six months and it currently has a negative rate-sensitive six-month gap (RSA - RSL), what actions should it take, if any, to preserve or increase its net interest income (NII)?
1. One of the consideration in making investments which allows the investor to increase the value of its assets to offset increase in the level of prices. a. TAX SHELTERb. LIQUIDITYc. INFLATION HEDGEd. PROTECTION OF CAPITAL 2. It facilitate the flow of funds from the suppliers to the demanders in the financial market. *a. GOVERNMENTb. FINANCIAL INSTITUTIONc. NET DEMANDERS OF FUNDSd. NET SUPPLIER OF FUNDS
- Financial intermediaries act to reallocate (move) money from borrowers to savers. True False
\\Assumes that commercial banks have a 20% fixed liquidity ratio. When Mr. Farhan Yaseen deposits PKR 1000 into a Bank. By the credit creation process, what is the maximum amount of loans that the banks can create? required calculation in the paper
2. Suppose that Md = –80i + 0.7Y and that BSP fixes Ms at Php50 B and the nationalincome is to be achieved at P80B.A. Determine the equilibrium interest rate and equilibrium quantity of money that isdesirable so as not to cause any surplus or shortage of money. Show supportingcalculation.B. Illustrate in a graph the money demand and supply and highlight the equilibriumpoint.
(1) Suppose you just bought a treasury bill for $965 that matures in three months (91 days), and has a face value of $1,000. What is your bond’s current discount yield? What is your bond’s current investment yield? ANS: (2) The French Government runs a budget surplus to finance its expenditure. Use the loanable funds model to show what happens to the interest rate, investments, and the quantity of loanable funds. ANS: (3) Which of the following is money? An American Express traveler’s check Checking deposits at Washington Mutual bank. The check you have just written to pay for school fees. ANS:
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.
With reference to what is referred to in Economics as 'the Circular Flow ofIncome', discuss the functions performed by Commercial Banks and Investment 1Banks
The Bangladesh Bank has created additional money worth Tk70,794 crore through various refinance schemes and easing regulatory requirements after the Covid-19 outbreak in March for stimulating 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). Creating additional money will increase money supply. What will happen to price level? Which theory did you use to answer the question? Explain the theory