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How do financial intermediaries generate profit Please i need the answere of the following questions from the book and which pages! Book name : Financial

How do financial intermediaries generate profit
image text in transcribed Please i need the answere of the following questions from the book and which pages!
Book name :
Financial Institutions, Markets,... (11th)
David S Kidwell, David W Blackwell
ISBN13: 9780470561089
Chapter 1: An overview of Financial Markets and Institutions Explain what is meant by term financial intermediation. Give 2 examples and explain how it works 1. How do financial intermediaries generate profit? Detailed explanations Explain how you think economic activity would be affected if we did not have financial markets and institutions. 3. 4Explain the statement: o financial claim is someone's asset and someone's else liability hy transactions? a direct financing transactions are most costly or inconvenient than intermediated Chapter 2: Federal Reserve and its power, and Chapter 3: The FED and Interest rates; and, Chapter 4: The level of Interest Rates Explain in detail which are Federal Reserve bank's monetary tools? Comment, explain and give examples for each tool in part. Explain which role plays the Central Bank for entire economic life. A bank has $ 3,000 in reserves, $ 9,000 in bank loans and $ 12, 000 of deposits. If the reserve requirement is 20%, what is the bank's reserve position? what is the maximum dollar amount of loans the bank could make? What would happen to the nation's money supply if the FED lowered the reserve requirement for banks to 10%? Demonstrate your results with a numeric example and T-accounts. As a college student who will soon enter the workforce, if not already, which of the objectives of monetary policy would like that our Central Bank to focus in the coming years? Explain in detail why 2. 3. 4. 5. How does a consumer's time preference for consumption affect the level of savings and consumption? How does the interest rate affect the consumer's decision to spend or save? 6. If money supply increased, what happens to the level of interest rates? 7. 8. If a bond dealer bought a $ 100,000 municipal bond at 90% of par and sold it at 93% of par, how much money did the dealer make on the bid-ask spread? Assume that a government bond promises to pay $ 3,000 in 3 years from now. If the going interest 9

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