Review Questions for examen 3 (chapters: of import Banks & the federal Reserve System, the Money Supply Process, and only part of Tools of monetary Policyâ€"just the Conventional Monetary Policy Tools section)
Exam 3: WEDNESDAY APRIL 25
30 Multiple choice questions
1. What is a cardinal bank?
A disposal institution that serves as a bankers bank & is responsible for conducing monetary policy & promoting stability in the financial system
2. In 1900 there were about 18 central banks in the world, but today there be about 160 central banks in the world. Why be there more central banks today than in 1900? (two reasons)
much countries
Recognition that monetary policy is better conducted by Central Bank that is a separate institution with in the brass (NOT part of the Treasury Department)
3. Is the disputation The functions of central banks have remained unchanged over time. true or false? Thoroughly rationalize why you indicated the statement was true or false. If you think the statement is true, you should explain the timeless functions. If you thing the statement is false, you should explain the functions in the past and the functions now.
False = functions have evolved over time
o past times ( Earliest Central Banks were established to facilitate brass finance its activities
o Present ( Today functions argon different; Most Central Banks are forbidden by law from directly financing government activities through loans to the government or by purchasing government debt directly from the government
4. Distinguish between microprudential and macroprudential regulation of the banking system.
Microprudential ordination = Pre-Subprime Crisis
o Focus: on INDIVIDUAL financial institutions
o design: to limit EXCESSIVE risk taking by that institution
Macroprudential Regulation = Post Crisis
o Focus: on system as a WHOLE & the interconnections among financial...If you want to get a bountiful essay, order it on our website: Orderessay
If you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment