Why using OIS rates instead of LIBOR rates during the 2008 crisis would be more efficient and accurate?

Q: Which of the following issues is least relevant to treasury​ management?

A: Treasury Management: It involves managing the holdings of an enterprise, with the primary purpose of…

Q: What caused the Collapse of 2008 in the Financial Markets? How did interest rates contribute to the…

A: Cause of economic crisis and collapse of the financial markets in 2008: The main cause was the…

Q: why do many analysts believe that securitization and shadow banking were significant factors behind…

A: Securitization is a risk management tool. Such tool is used to reduce the unsystematic  risk . Banks…

Q: What is the impact of the covid 19 crisis in Global finance market

A: International finance market can be defined as that market in which securities from different…

Q: In your opinion, do we still need a regulator if the banks are collapsing anyway?

A: Federal and state governments have various organizations set up that control and administer…

Q: You need to describe how the Fed responded to the financial crisis of 2007 - 2009 (including the…

A: The Fed or The Federal Reserve has conducted a range of exceptional operations for economic…

Q: Discuss the argument that central banks should have a mandate for price  stability to prevent an…

A: The central bank is the banker's bank. It gives advice to the government Central bank assists in…

Q: The concept that market forces in the macroeconomy can remedy a recession is referred to as:…

A: Monetary Policy- Monetary policy refers to the actions and communications of the central bank in…

Q: Explain the problem of unknown risks for financial instruments in furthering the 2007-2009 financial…

A: Risk whose occurrence is unexpected i.e. which are not known in advance is known as unknown risk.…

Q: The central bank of a country is having trouble with its economy, and the financial market wants to…

A: Quantitative  Easing- Under this form of monetary policy, the central bank of a country like Federal…

Q: One of the main arguments against using Fiscal Policy is the crowding out effect. Suppose the…

A:

Q: How did the Efficient Mark Hyoithese play a role in the financial crisis of 2008-2009?

A: Share prices reflect all information and consistent alpha production is impossible according to the…

Q: Has the development of the Eurodollar market made it easier ormore difficult for the Federal Reserve…

A: Eurodollars are held on to the interest-bearing account. The interest that is paid on these deposits…

Q: Regarding the 2007-09 Financial Crisis, answer the following questions:   Was this a systemic or a…

A: There are various types of risks such as systemic risk, non-systemic risk, systematic risk and…

Q: what are the advantages and drawbacks for digital Technology: How It Could Transform the…

A: Digital technology is referred as an usage of an advanced communication as well as information…

Q: critically discuss the rationale behind the introduction of negative interest rate policies (NIRPs)…

A: Negative interest rate policy (NIRP) is an a monetary policy tool employed by a central bank.Under…

Q: What are two monetary policies that could be implemented by the central bank which would have the…

A: Federal bank achieve of economic growth by monetary policy by increasing or decreasing money supply.

Q: Why would government usually default first to monetary policy for stabilization before using fiscal…

A: Monetary policy - It is concerned with the monetary system of a country. Monetary policy is the…

Q: What has been the role of IMF loans in international affairs addresing financial crisis? Why are…

A: International Monetary Fund or IMF is defined as an organization, which includes 190 countries as a…

Q: Should the economy’s current fragile recovery gather momentum, it is likely the Federal Reserve will…

A: Federal bank had responsibility of monetary policy so do it by open market operations.

Q: A. Briefly explain the problem of moral hazard in: (i) Equity financing (ii) Debt financing B.…

A: When there is an rise in the expected loss because of individuals and companies behaving carelessly,…

Q: There has been concerns among businesses that the recent reductions in the NIPR has not led to…

A: In the given question we need to answer the following question : There has been concerns among…

Q: The financial crisis of 2008-2009 spawned the concept of "systemic risk." What is meant by this…

A: Systematic risk is an important concept in the world of finance and investments.

Q: thorough explanation of the succesful and unsuccesful financial regulation that combat the 2008/9…

A: The financial crisis refers to the situation in which the value of a country's assets declines at a…

Q: How do you relate development of global value chains in global economy and the causes of 2008…

A: The question is based on the concept global value chain and its role in crisis of 2008-09.

Q: What went wrong with using LIBOR during the 2008 crisis?

A: The Financial crisis is a broad situation in which the financial assets of the countries lose their…

Q: According to the FDIC, they would like to see fewer banks in the future. What will be the outcome…

A: FDIC mentions in its latest report that they will see lesser banks in the future , the explanation…

Q: Discuss the 2007-2008 financial crisis and what impact it had on the financial markets. Who was…

A: The 2007 financial crisis was caused by the subprime mortgage crisis, which itself was due to the…

Q: Coval, Jurek, and Stafford describe a 2007 phone call in which Fitch stated that a 1-2% drop in…

A: Fitch is a credit rating agency and like other credit rating agencies Fitch rates different debt…

Q: One goal of the regulatory reforms that followed the 2007-2009 financial crisis was to address the…

A: The too big to problem was a problem associated with regulatory institutions who did not allow the…

Q: Are risk-free rates really risk free? What are the risks of government securities? Why do we still…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: The fallout from the financial crisis of 2008 included an overheated real estate market, fueled by…

A: Financial Statement:   It refers to the reports prepared by the company at the end of the financial…

Q: which of the following is an example of unsystematic risk? decrease income tax for all company soft…

A: Systematic risk are the volatility risk or market risk or undiversifiable risk, which used to affect…

Q: 2007– 2009 financial crisis?   - what is shadow banking  - advantages and disadvantages of shadow…

A: the crisis of 2007 2008 was due to rising house prices leading to default in payment of house by the…

Q: According to PFRS 7, it is the risk that the fair value or future cash flows of a financial…

A: Market risk comprises three types of risk: Currency risk Interest rate risk Other price risks

Q: Which of the following is NOT among key trends affecting the banking industry? O Convergence O ESG…

A: The banking industry is made up of a network of financial institutions called banks that help people…

Q: What is a key function of credit-rating agencies? Docredit-rating agencies always provide reliable…

A: Credit rating is the rating on the basis of which the credibility of the borrower is assessed by…

Q: Do you think that the Fed should control interest rates or let the free market set the rates? What…

A: Fed should have control over the interest rates.

Q: What is Efficient Market Hypothesis (EMH)  Does the Global Financial Crisis of 2008-09 support or…

A: EMH is a very important concept in the world of finance and stock markets and investing.

Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.