the importance of the Central Bank in the financial market

Q: Briefly discuss the reasons behind the global financial crisis in 2007 -2009.

A: Reasons behind the global financial crisis in 2007-2009: Global financial crisis took place because…

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: If the central bank’s goal is to maximize output, what interest rate will we expect in equilibrium?

A: The equilibrium real interest rate is the real rate of return which must be maintained to keep the…

Q: If the central bank desired to increase spending in the economy, using the instruments ofmonetary…

A: Monetary policy is used by the federal reserves also known as the central bank of an economy to…

Q: How many banks failures occurred in the United States during 2021?

A: A bank failure occurs when a bank becomes insolvent. Under such circumstances, the bank is unable to…

Q: What is a liquidity crisis?

A: Answer: Liquidity: liquidity refers to the ease at which the assets can be converted to cash.

Q: A6) Finance Today there is a clear consensus about the best way to design a central bank. What are…

A:

Q: Which of the following best describes the main responsibility of a central bank? * A. it acts as an…

A: The central bank is the primary monetary authority of a nation that is responsible for managing the…

Q: Explain tools used by central bank to: stimulate economy, to contain inflation How do government…

A: Central bank is an institution assigned with the task of maintaining proper money supply in the…

Q: How independent is the Central Bank? What factors contribute to and what factors work against…

A: Central banks are independent authorities appointed explicit obligations and officially protected…

Q: How Central Bank can use monetary policy to prevent the stock market bubble? Explain how the policy…

A: Monetary policy: It refers to that policies which are used by the central banks or governments to…

Q: Financial markets in 2022 are concerned with the return of inflation and the interest rate policy…

A: Answer -

Q: In 1971, the German central bank, the Bundesbank floated the DM rather than avoid taking what two…

A: The German current account had almost returned to normal in 1970-71. Waves of international money,…

Q: In recent years, which of the following has increased the most in quantitative easing by the central…

A: Quantitative easing (QE) refers to the part of central bank's monetary monetary policy. It is the…

Q: Give one of the commonly used monetary theories and briefly discuss

A: Monetary Theory was developed by Milton Friedman. Monetarists are concentrating on keeping inflation…

Q: How does the Central Bank spend it's

A: National banks influence the amount of cash available for use by trading government protections…

Q: Support your answer with calculations please. Suppose an economy in which the public holds 10% of…

A: We know that the monetary base is the sum of currency C and reserve R MB=C+R             .... (1)…

Q: Suppose that you are employed as an advisor to the central bank. Select the proper policy…

A: The monetary policy is the policy of the monetary authority of the economy regarding the money…

Q: argued that the central bank should be independent of the government. Discuss these arguments.

A: In nature, a central bank is a semi-independent body that is influenced by government choices and…

Q: Which interest rate is most likely to serve as the target interest rate by a Central Bank?   a)The…

A: The interest rate which is most likely to serve as the target interest rate by a central bank is the…

Q: The main responsibility of a Central bank is: O Neither monetary or fiscal policy Both monetary and…

A: Monetary  policy is the policy of the Monetary Authority of the country "Central Bank" that aims to…

Q: Can CDOs create a liquidity squeeze in the financial markets ?

A: A CDO is a financial instrument that rewards shareholders from a collection of revenue-generating…

Q: The primary function of central banks is to:   a. Increase risk and volatility to increase…

A: The primary function of central banks is to control inflation and help reduce business cycle…

Q: Explain the factors on which an independent central bank can have positive impact and the factors on…

A: The central bank is the sole authority and major financial institution of the economy that indulges…

Q: If the central bank desired to increase spending in the economy, using the instruments of monetary…

A: A MP is an instrument used by the Central Bank(CB) or the government of the nation to control the…

Q: Why would it be problematic for a central bank to havea primary goal of maximizing economic growth?

A: A central bank conducts the monetary policies of a country.  It also regulates the commercial banks.

Q: Suppose the economy is in recession. Provide possible actions taken by central bank to use monetary…

A: Meaning of Monetary Policy: The term monetary policy refers to the situation under which the money…

Q: Which is a central bank? 1) a bank for banks 2) any government-owned bank 3) any government-run…

A: Introduction. Central Bank is the head bank of Every which regulates other Bank

Q: Explain the type of policies a central bank can implement to raise the interest rate

A: The goal of the monetary policy of the central bank is to control the amount of money in the…

Q: Refers to the sale and purchase of government and other approved securities by the central bank in…

A: Central bank buys and sells securities to affect money supply in the economy.

Q: ntral bank sells government securities from the private sector-money markets other things being…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: What is the role of the Central Bank? How does central bank regulate monetary policy?

A: The central bank is the apex institution that manages monetary policy in the economy.

Q: central bank's function as a banker to the government

A: A central bank is an entity that plays a very important role in the banking system of a nation. It…

Q: why a central bank be independent from government

A: The monetary policy is the policy of the central bank regarding the money supply and interest rate…

Q: If a central bank wants to end the defation and stimulate the economy,as in the case of Japan in the…

A: Deflation refers to decrease in price level or inflation rate below 0%. When an economy experiences…

Q: What is the main role of central bank in an economy?

A: The central bank that is also known as the "lender of last resort," meaning it is responsible for…

Q: Explain what an independent central bank means for an economy, and why is this confirmation of…

A: The Central Bank  is defined as a financial institution which manages the money supply and the…

Q: What is the purpose or importance of having higher net income of a central banks?

A: In an economy, Central Bank is the financial authority that is responsible to conduct monetary…