Question 2 The interest rate elasticity of borrowing deals with the demand side / supply side (choose one) of the financial market. Full explain this question very fast solution sent me step by step
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Question 2
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- 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?Please no written by hand solution 1 a) Assuming that Stanbic Bank has branches A, B, C D etc. and it receives a deposit of 50,000 Shs from a particular person. It then removes a cash ratio of 15%. Explain how Stanbic Bank will create credit among her different branches. b) As a student of macroeconomics, what do you think, the government will do to achieve the forecasted drops in inflation rates. c) Discuss the major effects of taxes on the performance of our economy d) Advise the government on some of the major guiding principles they should follow when introducing a tax system e) Discuss the factors that limit the process of credit creation in any country Kindly please do not use GOOGLE ( No Copy and Past)Using demand and supply analysis to discuss the long-run price trend in the resaleHDB and private property market. You can draw what happened during previoushousing bubbles and the impact of previous property cooling measures.Use graph to explain.
- 12 Interest rates are a key weapon in fiscal policy Select one: a. False b. TrueDue date: Friday November 20, 2015Too Big to FailAmerican International Group, INC (AIG) caseIntroductionAIG is the story of a company, and its network of financial partners, who tookunprecedented risk and fell because of it. To prevent global economic disaster, the U.S.government came to its rescue. This has resulted in the biggest taxpayer bailout of a privatecompany in American history.BackgroundAmerican International Group, Inc. – also known as AIG – is an Americanmultinational insurance corporation with more than 88 million customers in 130 countries. AIGcompanies employ over 64,000 people in 90 countries. The company operates through three corebusinesses: AIG Property Casualty, AIG Life and Retirement and United Guaranty Corporation(UGC). AIG Property Casualty provides insurance products for commercial, institutional andindividual customers. AIG Life and Retirement provides life insurance and retirement services inthe United States. And UGC focus…2. The liquidity of an asset is A. the ease with which you can sell the asset. B. the speed at which the asset increases in value. C. another name for the demand for the asset. D. the degree to which the government monitors sales of this sort of asset.
- Hi goodmorning can you please explain or show more working please because I'm trying to work it with my financial calculator and it's not coming back with the answers. Please answer over thanks 4. Which bonds are acceptable for investment? Justify your response with suitable computations. 5.What will be the total cost of investment in bonds?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 FUNDSUsing demand and supply analysis to discuss the long-run price trend in the Singapore resaleHDB and private property market. You can draw what happened during previous housing bubbles and the impact of previous property cooling measures.Use the graph to explain.
- Some bank has assets totaling $1B. This bank has $25M in capital, and earned $10M last year. What is this bank’s earnings-to-capital ratio and equity multiplier?Suppose the government borrows $20 billion more next year than this year. a. Use a supply-and-demand diagram to analyze this policy. Does the interest rate rise or fall? b. What happens to investments?To private savings?To public savings?To national savings? Compare the size of the changes to the $20 billion of extra government borrowing. c.How does the elasticity of supply of loanable funds affect the size of these changes? d. How does the elasticity of demand of loanable funds affect the size of these changes?7) Money demand is given byMd/P = 1000 + .2Y - 1000i.Given that P = 200, Y = 2000, and i = .10, real money demand is equal toA) 1,300.B) 1,500.C) 260,000.D) 300,000. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
