Explain how does the distinction among nominal and real

Reference no: EM1334930

Monetary policy, interest rates, FDIC insurance questions

A. Why does borrowing short and lending long present a potential problem for banks?

b. What are two effects that a government guarantee of financial institutions can have and why?

c. After a major storm cash held by individuals has increased. Should the Fed buy or sell bonds and why?

d. How does the distinction between nominal and real interest rates add uncertainty to the effect of monetary policy on the economy?

e. What are five problems in the conduct of monetary policy?

Reference no: EM1334930

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