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Q. Explain about Banking Cycle?
An economic cycle that results from cyclical changes in the attitudes of banks toward lending risk. When economic times are good, bankers become optimistic that their loans would be repaid, and therefore they expand their lending. More credit means even stronger economic times and so on. Opposite takes place when economy becomes weaker: bankers begin to fear more defaults on their loans therefore they issue fewer loans, and henceforth economy weakens even further.
What are the causes of inflation? Define inflation as a steady enhance in the general price level. Then, there are, well, two and a half basic reasons: 1) Demand-pull infla
Using a diagram explain the equilibrium point of a monopoly
Purchasing Power Parity (PPP): The exchange rate is determined by the relative purchasing power of currency withineach country. For example, if a product X costs Rs. 100 in I
Are markets the best way of solving the basic economic problem? Justify your answer. The core of the economic problem ( who, what, for whom) is something all societies must add
in the keynesian model, the price is assumed to be what?
what are the uses of elasticity to the private sector
1. Discuss how banks make money, and are structured in respect to Asset, Liability and Capital Management – give examples.
what are the limitations of economies of scale?
The most fundamental economic problem is scarcity.
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