Reference no: EM13978518
The role of Bank Regulation has become increasingly complicated in maintaining “Safety and Soundness” of the Financial System.
What is Micro-Prudential Supervision of banking institutions?
What is Macro-Prudential Supervision of banking institutions?
What is the Basel Accord and its relevance to Saudi Financial institutions?
The 2000s witness a dramatic increase in Financial Engineering that produced a wide range of new loans and investment products.
What is Financial Engineering?
Provide examples of consumer loan products and investment securities.
How did Financial Engineering affect Adverse Selection and Moral Hazard problems prior to the 2008 Financial Crisis?
A major issue that has arisen after the 2008 Financial Crisis is the debate over “Too Big to Fail” financial institutions.
What are “Too Big to Fail” financial institutions?
What are the major concerns with the size of these corporations?
What do you think is the appropriate response for solving this problem? Explain with examples.
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Tax cuts imposed on higher-income households
: What is the difference between tax cuts imposed on higher-income households compared with lower- and middle-income households? Discuss the implications for the multiplier and the effectiveness of the tax cuts for boosting GDP.
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Fed affect the level of bank reserves and the interest rate
: How does an open market purchase by the Fed affect the level of bank reserves and the interest rate? How will GDP be affected? Explain the causal chain. Explain how interest rates and bond prices are related to one another. Why is this important for ..
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Firm an incentive to change the current price or quantity
: An oligopoist is correctly charging a price of $100 and is selling 400 units of output per day. If the firm increases price above $100, the demand curve is P=110 - 0.025Q. If the firm reduces price below $100, the demand curve becomes P=140 - 0.1Q. I..
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Explain the importance of liquidity management
: Banks manage their assets in a variety of ways. Explain the importance of “liquidity management”? What is the concern of the bank in regard to the liquidity of its assets? What can banks do to management liquidity risk?
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Complicated in maintaining safety and soundness
: The role of Bank Regulation has become increasingly complicated in maintaining “Safety and Soundness” of the Financial System. What is Micro-Prudential Supervision of banking institutions? The 2000s witness a dramatic increase in Financial Engineerin..
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Inefficiencies associated with government granted monopolies
: Do you vote? Why or why not? What does the probability of decisiveness suggest you should do? What are the inefficiencies (social waste) associated with government granted monopolies?
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Withdraws the money from savings account
: Sally Rand owns a ceiling fan company. She sells 1,000 ceiling fans at $50 each. Each fan costs her $20. She uses her own money to buy the fans; she withdraws the money from her savings account where it earns 5 percent interest. Before going into the..
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Increased cash flow should take care of profits
: The sales manager of a retail outlet suggests that the best way to increase the number of customers is to have a sale. If a 10 percent price cut doesn’t bring in enough customers, then he’ll cut prices 20 percent. Increased cash flow should take care..
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What kind of returns to scale is the firm experiencing
: A.B. Denson Company had been employing 6 workers and 8 tons of raw materials, using 2,000 square feet of plant space. The firm increased its work force to 12 workers utilizing 16 tons of raw materials in a plant space increased to 4,000 square feet. ..
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