Reference no: EM13106640
IMF Warning over Slowing Growth
The global economy may face a marked slowdown next year as a result of the turmoil in financial markets, the International Monetary Fund has warned. The IMF said the global credit squeeze would test the ability of the economy to continue expanding at recent rates. While future economic stability could not be taken for granted, there was plenty of evidence that the global economy remained durable, it added.
|
Assets
|
Liabilities
|
|
(millions of dollars)
|
|
Reserves at RBA
|
25
|
Current deposits
|
90
|
|
Cash in vault
|
15
|
Saving deposits
|
110
|
|
Securities
|
60
|
|
|
Loans
|
100
|
|
(a) Explain how turmoil in global financial markets might affect the demand for loanable funds, investment, and global economic growth in the future.
Bernanke's Asian Savings Glut Theory Blasted
U.S. Federal Reserve chairman Ben Bernanke says that high saving rates in Asia (that he called a "glut of savings") were to blame for the extraordinarily low bond rates during the first half of the "noughties", as well as U.S. soaring house prices and current account deficit. Claudio Borio, research director at the Bank for International Settlements, says Bernanke is wrong and excessive lending by financial institutions caused low interest rates.
(b) Graphically illustrate and explain the impact of the "glut of savings" on the real interest rate and the quantity of loanable funds.
(c) How do the high saving rates in Asia impact investment in other countries?
|
Hypothesis testing-z test and difference of proportions
: In the year 2000, the state of Indiana began a $40-million renovation of its state fairgrounds, which included the building of a miniature golf course and a state-of-the-art livestock building.
|
|
Describe risks associated with backdoor buying and selling
: What are the risks associated with backdoor (maverick) buying and selling? Why is purchasing interested in controlling this business practice?
|
|
Identify new prospects
: Do you think that mark reps would view the website as competing for their consumers' purchases and a source of conflict or would they think that it helps them to promote mark and identify new prospects? Explain your thinking.
|
|
What is the initial velocity
: The acceleration as a function of time of a mass-spring system is given by a=(0.70m/s^2)sin[(3rad/s)t]. a)If the spring constant is 20N/m, what is the amplitude? b)What is the initial velocity? c)what is the mass of object?
|
|
How turmoil in global financial markets affect the demand
: Explain how turmoil in global financial markets might affect the demand for loanable funds, investment, and global economic growth in the future and how do the high saving rates in Asia impact investment in other countries?
|
|
Would the result be any different than it is today
: Explain how would you have ruled on the case when it was tried in 2001? Would the result be any different than it is today after the supreme's court 2005 decision in the New London, Connecticut Case? Explain.
|
|
Discuss the legal and ethical issues surrounding solyndra
: Discuss the legal and ethical issues surrounding Solyndra, the California based solar panel manufacturer. Incorporate two to three specific laws or ethical codes that apply to the situation.
|
|
What is a typical neutron star density
: A neutron star is the remnant left after certain supernovae (explosions of giant stars). Typically, neutron stars are about 20 in diameter and have around the same mass as our sun. What is a typical neutron star density in g/cm^3?
|
|
Explain were dudlwy and steven guilty of murder
: The three surviving sailors ate the boy's remain for 8 days, at which point they were rescued by a passing boat. They were in a seriously weakened condition. Were Dudlwy and Steven guilty of murder? Explain
|