The government, business and household sectors are all suppliers of funds into the financial system. Is it true or false?

Q: What are the functions of central bank in developed economies?

A: Developed countries are the one that is able to have sustained developement and produce output…

Q: Please discuss the following. 1. Financial markets are institutions and systems that facilitate…

A: The term "financial market" refers to a place or platform where stocks, bonds, currencies, and other…

Q: Which of the following is NOT true about the International Monetary Fund? The IMF makes loans in…

A: The 190 nations that make up the International Monetary Fund (IMF) strive for sustainable…

Q: The importance of the Central Bank in the financial market.

A: Answer: Introduction: A central bank is the apex body that manages the monetary policy and the…

Q: What is the 2008 financial crisis. What are its causes and effects?

A: The 2008 financial crisis was an economic crisis that started in the USA and then spread to the…

Q: how does distortion affects the financial and economic values of the tradable and non-tradable goods

A: Market distortion: It refers to the increase prices of the goods and services. It is basically the…

Q: Discuss the reasons for 2008 Global Mortgage Crisis. Please limit your report to no more than 300…

A: Financial deregulation was the root cause of the financial crisis. This allowed banks to trade hedge…

Q: Providing tax shelters through investment is one of the main functions of the financial system. *…

A: Tax shelters are necessary, despite the fact that they are sometimes seen negatively. Individuals…

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: “Financial intermediaries play a crucial role in an economic crisis–they are responsible for both…

A: A financial intermediary is an entity that acts as the middleman between two parties in an…

Q: Is an economy both social and a financial system?

A: An economic system, also known as an economic order, is a method of producing, allocating resources,…

Q: Why a cashless society destory the international finance system?

A: Cashless economy is, when there is no cash flow within an economy, all transactions must be…

Q: Why should policies to recover from financial crises be in emerging market countries different from…

A: In case of a financial crisis, the prices of different assets drop and the companies and individuals…

Q: List any six categories of factors that could cause a financial crisis.

A: Since , financial crisis in a economy is a situation where  the value of the assets fall drastically…

Q: Suppose that Dmitri, an economist from a research institute in Texas, and Frances, an economist from…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: What is the relation between social economic and the financial crisis? What is the impact of…

A: Solution: Economics: It is the study of understanding different aspects of economy.  Economy: It is…

Q: Draw a circular flow model with the government, financial institutions, and international market…

A: The circular flow of income is defined as that model of the economy in which the major exchanges are…

Q: What caused the Stock Market Crash, when did it happen, and how did life in America change as a…

A: stock market crash of 1929, similarly called the Great Crash, a sharp lessening in U.S. protections…

Q: Which of these is an example of asymmetric information in banking?   a. Borrowers and lenders have…

A: Asymmetric information refers to a situation in which one party to a transaction has more…

Q: many people keep their savings in the piggy banks, it does not help the financial system to function…

A: Banks and other financial institutions give amazing chances to saving and contributing by people,…

Q: discuss four factors that can cause financial intermediation to fail.

A: The procedure of transferring money from economic actors with excess funds to those who want to use…

Q: During the 2007-2009 period, the US government made its most dramatic interventions in financial…

A: “Free and more flexible markets will still do more for the world economy than the heavy hand of…

Q: From the IMF Working Paper about Global Financial Crisis briefly explain one of the alternatives: a)…

A: b)Financial integration and interconectedness To recover from global financial crisis,IMF has…

Q: Why might an independent central bank be preferable to a a trustee bank? What is an example of an…

A: Answer- Need to find- Why might an independent central bank be preferable to a trustee bank? What is…

Q: How do financial markets help the economy? What are the key financial tools for the macroeconomy?

A: Macroeconomics is the study of aggregate of the economy. It was first derives by the economist…

Q: Differentiate between a traditional economy and a digital economy using FedEx as an example.

A: Answer: Answer: Introduction: Traditional economy: it refers to the economy which is based on…

Q: What is financial crisis? What causes financial crisis? Is it possible it could happen again? Give…

A: Financial market disruption caused by decreasing asset values and insolvency among debtors and…

Q: What are the difficulties faced by many governments with regards to safeguard measures taken against…

A: Government and central banks control the financial and economic functioning of a particular economy.…

Q: Can a financial market be complete and allow for arbitrage opportunities at the same time?

A: Arbitrage is a speculation technique where a financial backer all the while trades a resource in…

Q: During The 2007-2008 financial crisis, Sould government purchase the devalued paper, so that…

A: Devaluation is the reduction in official value of the home currency in terms of other currencies.

Q: Analysis of how the actions of financial intermediaries can result in an economic crisis e.g., the…

A: One of the primary reason for economic crisis is the lose in consumer confidence. This is because…

Q: Suppose that Antonio, an economist from an AM talk radio program, and Caroline, an economist from a…

A: Answer:

Q: What is stagflation caused and why are the politics of crisis management difficult?

A: Stagflation is described as a period of slow economic growth and relatively high unemployment—or…

Q: Which of the following is NOT TRUE about Financial Intermediaries? * A. Financial Intermediaries are…

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

Q: why is the capital market is riskier than the money market?

A: A market where buyers and sellers engage in financial securities trade such as stocks, bonds, etc.…

Q: What are the measures that can be taken by any governments to safeguard against financial…

A: Management- Far too many loans are done without adequate due diligence and without adequate follow…

Q: Explain any four instruments that the central bank can use to regulate the financial system?

A: Central bank is said to be a financial institution that has the authority to control money supply of…

Q: Explain one example of how the banking system or the financial market failed and caused economic…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: Why did China fare much better than the United Statesand the United Kingdom during the 2007–2009…

A: The financial crisis occurs in 2007 – 2009 occurs due to the crisis of the financial market of the…

Q: How do we restore confidence in the financial and banking industries and our political systems?

A: Introduction: The Industrial Revolution was one of the most significant events in human history,…

Q: Institutions that help to channel funds from savers to borrowers are known as a) corporations. b)…

A: People do not consume their entire income rather they like to save a part of the income for future…

Q: How should a yield curve look like in order for lenders to be encouraged to start lending again?

A: Yield curve: Yield curve is the graphical representation of different yield (interest rates) that a…

Q: Why has the government pumped billions into bank bailouts to prevent them from collapsing?

A: Bank bailouts refer to a situation when government or corporation injects funds into a bank that is…

Q: The following are correct about financial intermediaries, EXCEPT? * A. Financial intermediaries are…

A: In the financial markets, financial intermediaries are the firms or people, who act as the…

Q: Monetary and fiscal policies directly affect the level of activities in the financial market.  Is…

A: Monetary and fiscal policies directly affect the level of activities in the financial market.  Is it…

Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: