Some economists suspect that one of the reasons economies in developing countries grow so slowly is that theydo not have well-developed financial markets. Does thisargument make sense?

Q: Explain the role of commercial bank in an economy!!

A: According to the given question A commercial bank is considered as an bank which plays an…

Q: Discuss the role of banks as financial institutions that fuel the economic growth of a nation.…

A: Different roles of Financial Institutions in an economy are as follows: Banking/ Insurance…

Q: 2. Some Economists argue that one of the reasons that economies in developing countries grow so…

A: Various economists develop findings and theories using different aspects of society. Some of them…

Q: Explain with examples that how mortgage contributes towards development of financial markets in…

A: Mortgage is a type of loan which provided by lenders or bank to buy property or houses. It has very…

Q: Which type of short-term loan is secured with Treasury bills as collateral?   A. Commercial paper…

A:

Q: 1. Briefly list what are the negative implications of financialization on the economy and…

A: Financialization refers to the rise in size and importance of a country’s monetary sector relative…

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 are the interlinkages between financial crisis and financial system of a country?

A: The financial system assumes a key part in encouraging economic development by productively…

Q: With relevant examples, discuss the functions of a financial market.

A: Functions of a financial market #1 – Price Determination  The financial market plays out the…

Q: What is a bond, James Bond? how is it related to personal checks

A: Bonds are one of the important income yielding financial assets in the economy and not James Bond…

Q: Briefly explain the benefits of having a thriving capital markets even in an economy like India…

A: Capital market is a platform where organizations enter as a borrower because they need money to…

Q: what is the formula for the rate on long-term Treasury bonds?

A: Suppose:Amount paid for bond=$10,000Face value=$15,000Counpon rate=$2000

Q: What is diminishing Musharka, Suggest a way that how Islamic Financing can be done under this mode…

A: Musharakah is a mode of Islamic finance that is very similar to a joint venture. Under this…

Q: Explain, using examples, why financial crises have different causes in emerging economies compared…

A: Developed economy: An economy is considered to be a developed one where exist a sovereign state with…

Q: Explain with examples that how mortgages contribute towards development of financial markets in…

A: Mortgage is a type of loan which provided by lenders or bank to buy property or houses. In this case…

Q: In our current financial system in the United States, Americans need "money" issued by commercial…

A: A commercial bank basically refers to a type financial institution that accepts deposits, offers…

Q: Which Government/non-Government institutions are involved in regulating the financial system of…

A: Pakistan’s financial system comprises banks, Microfinance banks(MFBs), NBFCs, Development Finance…

Q: Discuss the flow of funds and the flow of financial instruments in the financial system.

A: A financial system refers to a set of financial institutions that include banks, stock exchanges,…

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: Financial intermediaries are firms that: match buyers and sellers of bonds. conduct open market…

A: Financial intermediaries are a bridge between savers and borrowers.

Q: The Minsky Model of a Financial Crisis .   Economist Hyman Minsky believed “…the financial system in…

A: A market economy is an economic system where price is determined based on the forces of supply and…

Q: List and describe thefactors that affect theequilibrium interestrate in the bondmarket

A: Answer - The following factors affect the equilibrium interest rate in the bond market - 1. Supply…

Q: Name and briefly explain what are the 5 functions of capital in financial institutions

A: FINANCIAL INSTITUTION:                  A financial institution facilitates transactions  and is the…

Q: EXPLAIN DYNAMICS OF FINANCIAL CRISES

A: In the financial crises, resource costs see a precarious decrease in worth, organizations and…

Q: write in 3 paragraphs what financial institutions are

A: Financial institutions provides variety of services ranging from deposits, lending and investments…

Q: How would a financial manager's role in a corporation increase/decrease if the rate of inflation in…

A: Inflation has its own pros and cons. Consumers are worse-off with inflation but investors can enjoy…

Q: Explain why the existence of financial institutions can allocate financial resources better!

A: Good financial sectors mean banks and financial institutions have a major role to play in the health…

Q: What are the different Financial Intermediaries and explain how they carry out the objectives of the…

A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to…

Q: Briefly describe how the advent of a financial crisis may increase the different categories of…

A: Asset values plummet, firms and individuals are unable to pay their loans, and financial…

Q: Financial Sector Reforms in Ghana from 2007 to 2020 Impact on the reforms of the economy

A: Empirical data suggest that the economic growth in the African nation of Ghana has been an…

Q: Following are some ways by which some of the challenges in the financial system in Ghana may be…

A: The following are the means through which financial Institutions in Ghana can promote confidence…

Q: Discuss briefly how households, businesses, and the government of an economy are connected through…

A: Financial markets, as the name implies, are a form of marketplace that allows you to sell and buy…

Q: Discuss the Basic Puzzle in Financial Structure around the Globe.   What is Lemon Problem? How the…

A: The basic puzzle in the financial structure around the Globe is the adverse selection in the…

Q: Summarize the government policies thatreduce the likelihoodof financial crisesin emerging…

A: The financial crisis is a situation in the economy in which the price of asset decline steeply,…

Q: What are the legislation and regulatory changes thathave driven the changes in the services of the…

A: Maintaining financial sustainability and the security of customers are the core priorities of…

Q: When financial crisis hit the nation, how it can impact on the financial market and what is the…

A: A financial crisis is the market situation in which the value of the price of assets see a steep…

Q: Access to funds, domestically and  internationally, is made easier with the presence of financial…

A: Access to funds explains the availability and affordability of the monetary resources to make an…

Q: en it is said that commercial banks are financial intermediaries, what is meant by this? What is…

A: A financial arbitrator is a business that acts as an intermediary between two parties in a financial…

Q: Are near money's highly liquid financial assets or many financial asset?

A: Near money is a financial economics term describing non-cash assets that are highly liquid, such as…

Q: How can changes in foreign exchange rates affect theprofitability of financial institutions?

A: The effects of foreign exchange rates ER changes deals with the reporting of Forex transactions in…

Q: The cities' low income families have sure access to financial services due to the many commercial…

A: We know that financial systems is the very important for eny economy in growth and development of…

Q: Explain with examples that how mortgagees contribute towards development of financial markets in…

A: Mortgages are very important for development of Pakistan.

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.