What does ?nancial intermediation mean

Reference no: EM13897741

1. What does ?nancial intermediation mean? What are the different ?nancial intermediaries in your country. Which of their liabilities would you classify as components of the monetary aggregates? Discuss.

2. Suppose that instead of imposing reserve requirements on demand deposits in the commercial banks, the central bank does the following: require automobile owners to hold $500 of non-interest-bearing deposits with the central bank.

i. How would the determination of the price level differ between the two arrange- ments?

ii. How would the real consequences of the two arrangements differ?

iii. Are there any special characteristics of demand deposits or any other reasons that make one of these arrangements preferable to the other?

Reference no: EM13897741

Questions Cloud

What aspect of culture does the film focus on : What aspect(s) of culture does the film focus on? (Family, marriage, kinship, food procurement, politics, religion, art, childrearing, sexuality, gender

Who should determine economic policy goals for the nation : Who should determine the economic policy goals for the nation: the government democratically elected by the public or a central bank whose directors (or governors) are not elected and cannot be made directly responsible to the public? What are som..

What is the all-in cost of a five-year loan : What is the all-in cost of a 5-year loan? What are its main components? What is a credit rating? What is a credit spread? Should corporations issue bonds in countries where they face the lowest credit spreads?

Strategy of matching the inmate to the correctional facility : Develop a profile of the so-called perfect candidate to participate in an intensive supervised probation program. The profile should contain at least three attributes that you believe make this defendant the perfect candidate for this type of prob..

What does ?nancial intermediation mean : What does ?nancial intermediation mean? What are the different ?nancial intermediaries in your country. Which of their liabilities would you classify as components of the monetary aggregates? Discuss.

How can central bank discounting cause procyclical movements : How can central bank discounting cause procyclical movements in the money supply? How can the central bank eliminate such a movement? Discuss.

Is the given bond necessarily a great deal for the investors : Given the "fat" coupon, is this bond necessarily a great deal for the investors? At maturity, in August 1990, the exchange rate was actually JPY144 > USD. Was the bond a good deal for investors?

Kinematic relationships between the crank and the yoke : Create a video of your real scotch yoke moving, and show the computer-generated animation side-by-side or overlayed in the same video.

What tools available central bank for control money supply : What are the tools available to the central bank for controlling the money supply? Discuss how manipulation of each of these tools will change the money supply and how reliable each tool is likely to be.

User Account

All Pages