Question
Activities in financial markets have direct effects on individuals' wealth, the behavior of businesses, and the efficiency of our economy. Three financial markets deserve particular
Activities in financial markets have direct effects on individuals' wealth, the behavior of businesses, and the efficiency of our economy. Three financial markets deserve particular attention: the bond market, the stock market and the foreign exchange market (because fluctuations in the foreign exchange rate have major consequences for the American economy).from your studies please answer the following questions:
1.Has the inflation rate in Egypt increased or decreased in the past 5 years (from 2015 to 2020)? What about interest rates? (your answer should be with statistics and graph and its references)
2.Do you think which recession is the most severe on the developing economies, the one of 2008 or corona virus recession?
3.What is the basic activity of banks?
4.What effect might a rise in stock prices have on consumers' decisions to spend?
5.How does an increase in the value of the Egyptian pound affect American businesses in Egypt?
6.When the dollar is worth more in relation to currencies of other countries, are you more likely to buy American-made or foreign-made jeans? Are U.S. companies that manufacture jeans happier when the dollar is strong or when it is weak? What about an American company that is in the business of importing jeans into the United States?
7."In a world without information and transaction costs, financial intermediaries would not exist." Is this statement true, false, or uncertain? Explain your answer.
8.Would you be willing to give up your checkbook and instead use an electronic means of payment if it were made available? Why or why not?
9.What is your opinion in the new initiative of the central bank related to the electronic payments?
10.In Venezuela, a country that was undergoing a rapid inflation at 2019, many transactions were conducted in dollars rather than in the domestic currency. Why?
11.You have just won $20 million in the state lottery, which promises to pay you $1 million (tax free) every year for the next 20 years. Have you really won $20 million?
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