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Q. What is securitization?
Answer: The term refers to monetary instruments in which bank assets are repackaged in readily marketable forms These kinds of "derivatives" although helpful for the international investors and the banks that underwrite them causes huge problems in government capability to monitor bank assets and independently assess their risk to the soundness of the international banking system.
How do countries gain under the increasing cost assumptions
Q. It is argued that import substitution is a misguided trade policy if the intent is to show long-term economic growth. Illustrate the reasons underlying this argument. Answe
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Application of defferential calculus in economics
WHATE IS THE PROPERTY OF OFFER CURVE OF A COUNTRY
Q. The 1980s are considered as the "lost decade" of Latin American growth. Explain why? Answer: Whilst the Great Depression made it hard for developing countries to make pa
Q. Refute the claim by mercantilists who claimed that without severe restrictions on international trade and payments, a country might find itself impoverished and without an adequ
Us and European Foriegn Exchange Flow chart Answer: The figure explicate how the money markets of two countries are linked through the foreign exchange market. The financial
Q. Why do governments prefer to avoid excessive current account surpluses? Or, why are growing domestic claims to foreign wealth ever a problem? Answer: On behalf of a given l
Q. Using the AA - DD framework, compare the effects of a rise in real domestic money demand under flexible and under fixed exchange-rate regimes. Answer: Under floating an i
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