Relationship of monetary policy to inflation

Q: What is foreign exchange FX risk?

A: Foreign exchange risk: It alludes to the misfortunes, due to currency or money changes, that a…

Q: How does inflation rate affect exchange rate?

A: Foreign Exchange Rate is the exchange rate at which the currency of one country exchanges with…

Q: direct and indirect relationships between balance of payment and inflation rate.

A:

Q: Which of the following is an instrument of monetary policy? The interest rate on three-month…

A: Monetary policy refers to the credit control measures adopted by the central bank of a country.

Q: Explain the concept of Inflation Targeting within the context of Ghana.

A: Inflation targeting is a policy used by the central bank to achieve a goal of a specified annual…

Q: Define Money market

A: Answer: Money market is a market place where the short-term securities transactions are made. It…

Q: What is the relationship between the time value of money and inflation?

A: Inflation is the rate at which the purchasing capability of money decreases over time. It is…

Q: Describe monetary policy and its function to the financial system

A: Monetary policy is reflective of policy of Central bank in order to control the level of money flow…

Q: what is currency issuance in monetary policy? give examples

A: Monetary policy is one of the important policies which is developed with a view to manage and…

Q: Distinguish between money markets and capital markets.

A: In a financial market, there are two types such as the Money market and Capital market. In the…

Q: Define trade balance (deficit or surplus)

A: Trade balance commonly known as international trade balance, balance of trade The difference between…

Q: Discuss the relationship between Credit View and Monetary Policy.

A: Monetary Policy:Monetary Policy is a policy that is planned and implemented by the central bank of a…

Q: How does the Federal Reserve conduct monetary policy?

A: Federal Reserve regulates money supply through monetary policy. It conducts monetary policy by using…

Q: the Federal Reserve's monetary policy instruments and how they are used

A: The answer is:

Q: Instruments of money market .Explain it

A: Money Market are short-term instruments used for financing. These instruments aim to increase the…

Q: What is the purpose and workings of the Monetary policy transmission mechanism (MPTM)? What are the…

A: Monetary transmission technique or the mechanism is referred to as the process through which the…

Q: What effect does inflation typically have on the EOQ?

A: Economic order quantity (EOQ) is the optimal purchasing order number to keep stock costs, such as…

Q: Define Foreign currency hedge.

A: Hedge: The process through which the risk associated with a particular project, can be eliminated is…

Q: What is international Monetary Fund?

A: The international monetary fund (IMF) is an international organization consisting of 190 countries.…

Q: Why monetary policy is important?

A: Monetary policy is the policy which controls the supply of money available in the country to promote…

Q: With the on going crises, read and prepare to discuss the BSP's transparency mechanism under…

A: The action by the monetary authorities of a country to either expand or tighten the mkoney flow is…

Q: What is the subsequent measurement of foreign currency denominated monetary items Closing rate…

A: Monetary items are those which are in the form of money or can be measured in the form of currency.…

Q: Why inflation is considered and have effect in present value?

A: Inflation is the increase in the general price level of the country. It is an important indicator of…

Q: Why is the U.S. Treasury yield considered the base interest rate?

A: Bondholders, higher than any other form of the investor, are concerned about future interest rates.…

Q: what are the tools the Federal Reserve uses to control monetary policies. Include the objective each…

A: The Federal Reserve typically use following tools to control monetary policies:

Q: the importance and function of money.

A: Today, money has become the most important of our lives. We cannot imagine a day without money ,…

Q: Which of the following basic accounting assumptions is threatened by the existence of severe…

A: Correct option is A i.e. Monetary unit assumption      Monetary unit assumption is a  basic…

Q: interest

A: There are several methods used by the central banks in order to control the money supply. It is for…

Q: difference between  Money and capital markets.

A: Financial Market: An exchange where buyers and sellers meet to trade financial assets such bonds,…

Q: The nominal interest rate is adjusted based on _______ from the real interest rate.

A: Nominal interest rate is that interest rate before taking inflation into account. On the other hand…

Q: Define the term Monetary liabilities.

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Explain monetary policy.

A: Monetary policy is the plan of action of a country's central bank (CB). The main aim is to control…

Q: Explain how changes in interest rates are likely to affect exchange rates.

A: General Introduction: Exchange rates are very important factor in determining country's economic…

Q: Why money markets are important? Discuss the types of money market instruments..draw a flow chart.

A: Money market deals in instruments that have a duration of equal to or less than a year. This market…

Q: What is the international monetary system?

A: International monetary system is the operating system and rules that govern the use of financial…

Q: is a money market instrument.

A: Money Market Instrument: These instruments have a period of maturity of up to one year. The primary…

Q: hat are the tools of monetary policy?

A: The monetary policy is the policy that is adopted by the central banks or the monetary authorities…

Q: Define Treasury Inflation Protected Security (TIPS)

A: Inflation is an economic term that represents a decrease in purchasing power of money over a…

Q: What is the basic accounting problem created by the monetary unit assumption when there is…

A: The Financial Accounting Standards Board (FASB) is known as the is private, non-profit organization…

Q: What Is The Difference Between Real Money & Nominal Money?

A: Real money: It refers to the supply of nominal money that is adjusted with respect to the variation…