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A: Given, money multiplier = 3.5 Monetary base = $10 billion
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Q: Illustrate the tools of money supply
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- Hide Assignment Information Instructions The table below is broken down by Month, Real Interest Rate (%), Loanable Funds (trillions of $), Exogenous Change, Equilibria (increases, decreases, or no change. Use the data table to determine the equilibrium real interest rate after certain factors change: Month Real Interest Rate (%) Loanable Funds (trillions of $) Exogenous Change Equilibria (increases, decreases, or no change) January 3% 3 no change no change April 3% 4 increased fund supply ? July 4% 2 decreased fund supply ? December 3% 3 increased fund demand ?NIIP and national wealth A country has $35 worth of factories with foreign owners. The country's nationals own $100 of wealth, of which only 52 is invested domestically. The country's treasury is holding $8 of reserves of foreign currency. Foreigners own $15 of the country's firms' stock. Foreigners hold no deposits nor other in the country. They have zero reserves of the country's currency. (a) Find the country's NIIP (b) The rate of return on all domestic investment abroad except the currency reserves is 5%. The reserves pay 0. For foreigners, the return on all their assets in the country is 2%. Find the country's NFIA. Answers. (a) -2 (b) +1 I need assistance answering questions a and b, and the answers are provided.NIIP and national wealth A country has $35 worth of factories with foreign owners. The country's nationals own $100 of wealth, of which only 52 is invested domestically. The country's treasury is holding $8 of reserves of foreign currency. Foreigners own $15 of the country's firms' stock. Foreigners hold no deposits nor other in the country. They have zero reserves of the country's currency. (a) Find the country's NIIP (b) The rate of return on all domestic investment abroad except the currency reserves is 5%. The reserves pay 0. For foreigners, the return on all their assets in the country is 2%. Find the country's NFIA. (c) By the end of the year (January 1 next year), the country has $48 worth of claims on foreign assets (including the $8 in the treasury) and foreigners have $55 of claims on the country's assets. There were no valuation effects. Find the country's current account. (d) In (c), nothing changes for the home claims on foreigners. The foreign FDI…
- true/false explain 4. When nominal interest rates are zero, the central bank can still lower them by printing money and purchasing bonds from banks. This increases the supply of loanable funds and stimulates lending.A mortgage 105m is a loan that a person makes to purchase a house. Table 19.11 provides a list of the mortgage interest rate for several different years and the rate of inflation for each of those years. In which years would it have been better to be a person borrowing money from a bank to buy a home? In which years would it have been better to be a bank lending money?Give only typing answer with explanation and conclusion If a bank expects interest rates to go up in six months and it currently has a negative rate-sensitive six-month gap (RSA - RSL), what actions should it take, if any, to preserve or increase its net interest income (NII)?
- 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 FUNDS.......... can be stopped with .......... policy changes that remove the need for .......... (QUESTİON MAY HAVE MORE THAN ONE CORRECT ANSWER.) a.Seigniorage / monetary / borrowing in the open market b. Hyperinflations / fiscal/printing large quantities of money c.printing large quantities of money / monetary / taxes d.Hyperinflations / fiscal / seigniorage e.Open market operations / new tax / selling gold.What happens to the commercial banks if the interest income rate is in a positive figure? Explain with an example Pls No copy paste and no plagiarism
- b) Elaborate the saving function with the proper diagram to support your answer _________ a) Explain the quantity theory of money.The Bangladesh Bank has created additional money worth Tk70,794 crore through various refinance schemes and easing regulatory requirements after the Covid-19 outbreak in March for stimulating demand to revive the declining economy. (link: https://tbsnews.net/economy/banking/bangladesh-bank-creates-money-worth-over-tk70000cr-revive-economy-76435?fbclid=IwAR108OXKcbXq6JjZj6v9FbULrDtys_QsZySUTKeAmauoqTjppgnLqU89muw#.Xq5kdXhgRqq.facebook). Do you think creating this additional money will lead to inflation? What type of inflation, demand-induced or supply-induced? Do you think it will be continued inflation? Why? Draw a relevant diagram to explain your answer.The Bangladesh Bank has created additional money worth Tk70,794 crore through various refinance schemes and easing regulatory requirements after the Covid-19 outbreak in March for stimulating demand to revive the declining economy. (link: https://tbsnews.net/economy/banking/bangladesh-bank-creates-money-worth-over-tk70000cr-revive-economy-76435?fbclid=IwAR108OXKcbXq6JjZj6v9FbULrDtys_QsZySUTKeAmauoqTjppgnLqU89muw#.Xq5kdXhgRqq.facebook). Creating additional money will increase money supply. What will happen to price level? Which theory did you use to answer the question? Explain the theory