What is the main rationale behind paying negative interest rates to banks for keeping their deposits at
Question:
What is the main rationale behind paying negative interest rates to banks for keeping their deposits at central banks in Sweden, Switzerland, and Japan? What could happen to these economies if banks decide to loan their excess reserves, but no good investment opportunities exist?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (3 reviews)
The main rationale behind implementing negative interest rates in countries like Sweden Switzerland and Japan is to stimulate economic activity and co...View the full answer
Answered By
Muhammad Mahtab
everyone looks that their work be perfect. I have more than a five year experience as a lecture in reputable institution, national and international. I provide perfect solution in marketing, case study, finance problems, blog writing, article writing, business plans, strategic management, human resource, operation management, power point presentation and lot of clients need. Here is right mentor who help clients in their multi-disciplinary needs.
5.00+
3+ Reviews
14+ Question Solved
Related Book For
Financial Markets And Institutions
ISBN: 9781292215006
9th Global Edition
Authors: Stanley Eakins Frederic Mishkin
Question Posted:
Students also viewed these Business questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following is an article published in the Financial Times Alphaville section by Rui Soares, an investment analyst and member of the investment team at FAM Frankfurt Asset Management a firm that...
-
Explain why b x = e x ln b .
-
What are some alternative techniques to traditional interviews?
-
(Pension Expense, Journal Entries for 2 Years) Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2010 and 2011. (a)...
-
BCD Manufacturing is considering repurchasing 40 percent of its common stock. Management estimates the tax savings from such a move to be $48 million, based on the addition of $1 billion of debt at a...
-
Beginning inventory, purchases, and sales data for portable DVD players are as follows: The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine...
-
January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January 1, 2018, are as follows: sales commissions, $25,500; rent, $14,000; utilities,...
-
Suppose your boss asks you to write a report with two conditions: It has to be clear (i.e., well written) and it has to be completed by the end of the day. Do these instructions constitute a dual...
-
In many countries, especially with expected inflation, inflation targeting is the objective of central banks. Do you think this is always a good idea? Why or why not?
-
There are 15 students on a yearbook committee. 40% of the students are females. How many students on the committee are males? A. 6 B. 9 C. 12 D. 13 E. 15
-
You can develop your capabilities as a manger by better understanding different ways of motivating and rewarding employees. You can also better prepare for your own career by better understanding the...
-
Topic: Project Malasakit of Kara David https://projectmalasakit.org/ What is the pros and cons of these alternative courses of the action below: Strengthen the internal organization via promoting it...
-
If you are a Super Coffee company and want to partner with Influencers on Instagram. How to find them? Influencer suggestions? How much to pay them? Who are they? Your budget is $250,000 So...
-
As the Customer Support Manager in the Fast-Moving Consumer Good (FMCG) sector with the ABC Corporation you are expected to address major grievances of customers from our product line and special...
-
An agent for positive change can be defined as someone who has the capability to influence and motivate those around them to accomplish whatever shared task needed to achieve a common goal, these...
-
During its first year of operations, Walnut Company completed the following two transactions. The annual accounting period ends December 31. a. Paid and recorded wages of $130,000 during Year 1;...
-
Find the image of x = k = const under w = 1/z. Use formulas similar to those in Example 1. y| y = 0 -21 -2 -1 -1, /1 12 T -1 -1 y= -2 x =0
-
What are the differences between a cap, a floor, and a collar? When would a firm enter any of these derivative security positions?
-
Refer to Table. a. What was the settlement price on the December 2014 Eurodollar futures contract on August 7, 2013? b. How many 5-year Treasury note futures contracts traded on August 6, 2013? c....
-
Suppose you purchase a Treasury bond futures contract at a price of 95 percent of the face value, $ 100,000. a. What is your obligation when you purchase this futures contract? b. Assume that the...
-
Plant Co completed a special landscaping job for Smith Co. Plant uses ABC and has the following activity rates: Activity Allocation Base Activity Rate Designing Number of designs $275 / design...
-
HELP ASAP On January 15, the end of the first biweekly pay period of the year, North Company's payroll register showed that its employees earned $50,000 of sales salaries Withholdings from the...
-
These account balances listed below were provided to you from the Horizon Corporation at the end of December 31, 2020. Salaries and wages payable$ 2,580 Salaries and wages expense39,850 Utilities...
Study smarter with the SolutionInn App