Question
Because inflation targeting focuses on achieving the inflation target, it will lead to excessive output fluctuations. Is this statement true, false, or uncertain? Explain your
"Because inflation targeting focuses on achieving the inflation target, it will lead to excessive output fluctuations." Is this statement true, false, or uncertain? Explain your answer.
"A central bank with a dual mandate will achieve lower unemployment in the long run than a central bank with a hierarchical mandate in which price stability takes precedence." Is this statement true, false, or uncertain?
What are the benefits of bank capital? Are there any costs associated with holding a large amount of capital or raising new capital?
What are the costs and benefits of a too-big-to-fail policy?
Off-balance sheet activities can be dealt with by using simple bank capital requirements. True/False. Explain.
If reserve requirements were eliminated in the future, as some economists advocate, what effects would this have on the size of money market mutual funds?
Since there are many more banks in the US than in Canada, the American banking system is more competitive than the Canadian system. True/False. Explain
Under the provisions of the Dodd-Frank Act of 2010, systemically important financial institutions (SIFIs) are required to maintain capital reserves (potentially up to 8% of the fund's assets). Explain the impact on mutual funds' performance if they are designated as SIFIs.
Suppose that you can deposit at most $200 per month for your savings and that you want to buy securities that are available only in large denominations. What benefit of mutual funds would be particularly attractive to you?
What prompted the growth of money market mutual funds?
Distinguish between adverse selection and moral hazard as they relate to the insurance industry.
How do investment bankers, securities brokers, and security dealers differ in their roles?
please write about 200 words for each of the 12 questions
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