What is meant by commercial banks providing liquidity to the financial system, businesses, and households? What role
Question:
What is meant by commercial banks providing liquidity to the financial system, businesses, and households? What role is played by lines of credit in this process? What is a line of credit offered by a commercial bank? Under a line of credit, who makes the decision of whether and how much to draw (borrow)? What is meant by a revolving line of credit?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (2 reviews)
In simple terms when commercial banks provide liquidity it means they are supplying money to the fin...View the full answer
Answered By
Priyanka Elizabeth Thomas
I am a nurse by profession. I am a Master degree holder in Mental Health Nursing. I have a total of 7 years of experience in nursing. I am a university medalist in Mental Health Nursing. I have attended training and certified in BLS, Psychological first aid, National Quality Assurance Standards, NABH, Neurolinguistic Programming, Hypnosis and life coach. I held post of clinical instructor, staff nurse, lecturer in previous organizations and currently work as a Nursing tutor. I even contributed to chapters in nursing competitive exams book namely target high. I also have teaching experience in coaching centers for nursing competitive exams. Overall, I balance my professional experience in both clinical and teaching settings so as to develop knowledge, positive attitude and professional skills in nursing. I am extremely enthusiastic to share my knowledge and teaching skills to the young people who are keen to learn.
0.00
0 Reviews
10+ Question Solved
Related Book For
Financial Markets Banking And Monetary Policy
ISBN: 9781118872239
1st Edition
Authors: Thomas D. Simpson
Question Posted:
Students also viewed these Business questions
-
Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...
-
can someone solve this Modern workstations typically have memory systems that incorporate two or three levels of caching. Explain why they are designed like this. [4 marks] In order to investigate...
-
Let r and s be solutions to the quadratic equation x 2 b x + c = 0. For n N, define d0 = 0 d1 = r s dn = b dn1 c dn2 (n 2) Prove that dn = r n s n for all n N. [4 marks] (b) Recall that a commutative...
-
After the car reaches 1 0 0 km / hthe driver immediately steps on the brakes and comes to a stop in 2 . 5 5 s . The brakes are at a distance 1 5 . 9 cm from the center of the wheel and the force they...
-
A pipe fitted with a closed valve connects two tanks. One tank contains a 5-kg mixture of 62.5 percent CO2 and 37.5 percent O2 on a mole basis at 30C and 125 kPa. The second tank contains 10 kg of N2...
-
The rolling resistance of a car depends on its weight as: F = 0.006 mg. How far will a car of 1200 kg roll if the gear is put in neutral when it drives at 90 km/h on a level road without air...
-
Research and Analysis Using the Annual Report} Obtain George Weston Limited's 2014 annual report through the "Investor Relations" portion of its website. \section*{Required:} 1. Determine the amounts...
-
The stock of Gao Computing sells for $50, and last year's dividend was $2.10. A flotation cost of 10% would be required to issues new common stock. Gao's preferred stock pays a dividend of $3.30 per...
-
(11) The curve represented by the polar equation r09) 2 egg is called a logarithmic spiral. The gure below shows logarithmic spiral 116') = ea";21W for 0 E 9 S 4%. (a) Find the arc length of the...
-
Sofia Lofts case, but under a new set of assumptions on page 11 of the case. First re-read the Sofia Lofts case, then click here to download the new page 11. Specifically, you are to write up a brief...
-
How do commercial banks address the problem of asymmetric information? How do you suppose they get remunerated for their efforts?
-
Using the FRED website, chart the level of M1 and M2. Chart 12month growth rates for each. What might you infer about the performance of the economy based on these growth rates?
-
Draw and label the given streams and derive expressions for the indicated quantities in terms of labeled variables. The solution of Part (a) is given as an illustration. (a) A continuous stream...
-
In a competitive labor market, the demand for and supply of labor determine the equilibrium wage rate and the equilibrium level of employment. Discuss the relationship between how these markets...
-
If the nominal rate of return is 8.08% and the inflation rate is 3.99%, by what percent is actual purchasing power increasing?
-
Suppose the spot exchange rate for the Korean won (KRW) is KRW120/USD (USD is the U.S. dollar). If the risk-free rate of interest in the United States is 10% and the risk-free rate of interest in...
-
How do strategic human capital management practices such as talent development, succession planning, and workforce diversity contribute to organizational agility, knowledge retention, and competitive...
-
Harms Inc. reported in its 2006 annual report the following information: Plan Status: December 31, 2006 Accumulated Benefit Obligation (ABO) $ 90 Million Projected Benefit Obligation (PBO) $ 95...
-
List the direct labor variances and briefly describe each.
-
1. Advertising for eyeglasses _________ (increases/decreases) the price of eyeglasses because advertising promotes _________. 2. An advertisement that succeeds in getting consumers to try the product...
-
The Bank of Canada purchases $1 million of foreign assets by selling $1 million in T-bills. Show the effect of this open market operation on the Banks T-account.
-
The U.S. Federal Reserve publishes information online that explains the workings of the foreign exchange market. One such publication can be found atwww.newyorkfed.org/education/addpub/usfxm/. Review...
-
The Bank of Canada purchases $1 million of foreign assets for $1 million. Show the effect of this open market operation on the Bank s T-account.
-
QUESTION 2 7 Using the indirect method to prepare the statement of cash flows, ABC Company sold equipment for $ 1 4 , 6 0 0 cash, sold land for $ 8 , 0 0 0 cash, and purchased another piece of...
-
On October 1 , 2 0 2 2 , Pharoah Company places a new asset into service. The cost of the asset is $ 1 0 4 0 0 0 with an estimated 5 - year life and $ 2 3 0 0 0 salvage value at the end of its useful...
-
( a ) What is the estimated fair value of the trade name? Pearl determines that the appropriate discount rate for this estimation is 1 0 % . ( Round factor values to 5 decimal places, e . g . 1 . 2 5...
Study smarter with the SolutionInn App