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3.
Why was Barings Bank willing to transfer large cash sums to Barings Futures Singapore?
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- Which of the following is a matured money market instrument widely used in the USA, Europe and Asia where both cash and securities are the motivators? a. Commercial Papers b. Treasury Bills c. Repurchase Agreements d. Certificate of DepositsFINANCE> CAPITAL MARKETS 1. What are the 2 classification of monetary standards and explain each. 2. Under the fiat standard or fiat money, which of the money is used by the Central Bank to stabilize the circulation of money in a country? 3. What are the types of liability. Explain each and give example.Which of the following is considered as cash equivalents? Bank overdraft Trade AR Money orders All of the above
- FINANCE > CAPITAL MARKETS What is fiat standard or fiat money? Under the fiat standard or fiat money, which of the money is used by the Central Bank to stabilize the circulation of money in a country?1. How has deregulation of the financial services industry affected the makeup offinancial intermediaries? How do you think intermediaries’ characteristics willchange in the future? 2. How do banking organizations in the United States differ from banking organizationsin other countries? Why are they different? 3. How is money created in a banking system that has fractional reserve requirements(i.e., a fractional reserve system)? 4. Describe the open market operations undertaken by the Federal Reserve. Whattype of trades would the Fed make if it wanted to increase interest rates? 5. How would funds—that is, the money supply—in the United States be affectedif the Federal Reserve increases reserve requirements? Give an example.4. Which is false concerning measurement of cash and cash equivalents? a. Cash is measured at face value b. Cash in foreign currency is measured at the current exchange rate c. If a bank or financial institution holding the funds of the company is in bankruptcy or financial difficulty, cash should be written down to estimated realizable value d. Cash equivalents should be measured at maturity value, meaning face value plus interest
- Which of the following is not a function of a Central Bank? Question 19Answer a. To regulate the issue, supply and availability of money. b. To manage the foreign exchange reserves. c. To advise government on monetary and fiscal matters. d. To manage the public and private debt in the country.Which of the following assets are not included in “cash equivalents” in a typical balance sheet?a. Foreign government securitiesb. Certain very low-risk equity securitiesc. U.S. government securitiesd. Time depositse. All of the above might be included in“cash equivalents.”Question 3 Provide short but precise answers to the following questions Considering the threat money laundering poses for international finance, what are bankers required to do to prevent this criminal act? What do you consider the most important variables in assessing country risk? If the price of Saudi riyal is $0.4, then the price of a dollar? Now you are in Saudi Arabia, and you give the bank $50 and the bank gives you back 200 riyals. Express the exchange rate between dollars and riyals. In what way is the market for private banking services changing? Do these changes represent threats or opportunities for international bankers?
- c) In what three ways do commercial banks make a profit from the monetary system? (d) In Canada, what is the equivalent of the U.S. Federal Reserve? e) Suppose that the United States were to adopt a system of full-reserve banking; thatis, demand deposits would be illegal to lend out, and banks would only charge a nominalfee for safekeeping. Would this help to fix the problems that Mike Maloney layed out? Explain your answer.1. At any given time, the bank will purchase foreign exchange currency at what cost? a. market price b. client's selling price c. lower than the selling price 2. A bond call price amount is a. lower than par value b. higher than par value c. lower than discount valueAll else being equal, if a central bank buys government bonds from the market it would: a. mean savings in the economy are likely to increase. b. mean the supply of loanable funds would move to the left. c. increase the money supply. d. increase interest rates.