Government guarantee of financial institutions

Reference no: EM1373600

[A] Why does lending short and 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: EM1373600

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