Unlike other investors, you believe the Fed is going to loosen monetary policy. What would be your recommendations about investments in the following industries?a. Gold miningb. Construction
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Unlike other investors, you believe the Fed is going to loosen
a. Gold mining
b. Construction
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- You expect the Central bank to conduct expansionary monetary policy. What will be the impact on the following industries, would you recommend investing in them? : a) Gold mining b) Housing constructionOne of the main arguments against using Fiscal Policy is the crowding out effect. Suppose the government uses government purchases to stimulate the economy. a) Explain the crowding out effect in detail using a graph for the bond market, the money market, the foreign exchange market, and the AD SRAS LRAS model. b). Explain quantitative easing? c) If the Fed’s current policy is quantitative easing, do you think that there is a danger of the government’s current fiscal policy being crowded out? Why or Why not? Explanation required for credit.If you believe the U.S. dollar will depreciate more dramatically than other investors anticipate, what will be your stance on investments in U.S. auto producers?
- If a central bank decreases interest rates, then gradually: a. the country's gross domestic product is likely to decrease. b. foreign exchange rate is likely to appreciate. c. demand for exported goods and services is likely to increase. d. flows of investment funds into the country are likely to decrease.For each of the following monetary policy tools:A. The BSP buys securities in the open market.B. The BSP sells foreign exchange currentC. The BSP increases the reserve requirement ratio.D. The BSP applies its moral suasion ability requesting commercial banks to lowerdown interest rates.E. The government decided to deposit funds at the BSP.1. Determine whether the monetary tool imposed by the BSP is an expansionary or acontractionary policy.Why would the U.S. government consider reinstitutingthe “wall” between investment banking and commercialbanking?
- although it is important to consider the impact of inflation on investments made within one country, it is especially important to do so in multinational investment situations true or false?Why might a foreign government’s policies be closely monitored by investors in other countries, even if the investors plan no investments in that country? Explain how monetary policy in one country can affect interest rates in other countries.What are two monetary policies that could be implemented by the central bank which would have the same impact as unemployment benefits? Which policy above including unemployment benefits would be most effective in boosting the economy due to a decrease in economic activity
- Because capital flows were an important element in the currency crises, it has been advocated that emerging markets countries avoid the financial instability by restricting capital mobility. Assess the extent to which you agree with this statement.Investment banks' activities in recent years have gone well beyond their "traditional" role of underwriting stocks and bonds. Investment banks (remember, most of them are now bank holding companies and thus are able to borrow funds from the Federal Reserve and get taxpayer-funded bailouts) are involved in a wide variety of "complimentary financial activities." What are the possible implications for financial markets as investment bans continue to expand their activities? Is this an efficient way for investment banks to diversify their activities? Or is it an attempt by investment banks to corner markets that could result in the next global financial crisis?Treasury bills is the financial instrument that serves as the basis for evaluating rates of return on investment in any economy. Assess the extent to which you agree with the statement with clarifying whether you will prefer to invest in this financial instrument or not.