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1.Briefly explain the role of central bank in the monetary policy of the country, particularly in banking industry. 2.Briefly explain about the two banks and
- 1.Briefly explain the role of central bank in the monetary policy of the country, particularly in banking industry.
- 2.Briefly explain about the two banks and provide relevant information about the interest rates of fixed deposits (6 months, 1, 2, 3 4, and 5 years).
- 3.For your assigned banks, examine the lending rates and various types of mortgage with relevant interest rates. If you want to get €100,000, say for housing, how much would be the total profit that you have to pay to the bank for the use of capital? How much would be the interest payment if you get a loan for 15 years? 20 years? 30 years?
- 4.If you had invested € 10,000 in a 1-year, 3-year, and 5-year fixed deposit account, how much profit would you have earned? Assume that your monthly interest earned by the fixed deposit had been invested in a short-term account that pays 10% profit (or based on the interest rate of your chosen banks), how much profit would you have earned? (Using Excel or a calculator you have to present your calculation steps using proper tables and include it in your written assignment).
- 5.Critically discuss the role of inflation and taxes on your profit (bonus marks).
- 6.By using graphs and/or table, perform a comparative analysis of the profit earned among these two banks. Which bank would you choose?
- 7.Are these banks listed on the stock market of your country? If yes, how much was the price of per stock 5 years ago and how much is the price of the stock today? How much would you earn, if had invested in the stock of these banks five years ago?
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