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In 2020, the whole world banking sector including Pakistan has gone through the most unexpected and uncertain era. Do you think in 2021, the current policies of state bank of Pakistan can revive the banking sector of Pakistan?
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- 13.) What are derivative securities? Why do they exist? 14.) 2020 was year the COVID-19 global pandemic. Specifically explain how both monetary and fiscal policy have been used in the United States as a reaction to date. 15.) What causes the basic changes to overall supply and demand for money and loanable funds?In the current pandemic situation, State Bank of Pakistan lower the interest rate (KIBOR) from13.75% to 7%. How this change could help to revive the economy? What other monetarypolicy measures could be taken by state bank of Pakistan in this situation?How Did the Government Respond to the Banking Crisis of 2023? add source.
- What have we learnet from Asia Financial Crisis 1997? In the future, How to prevent this crisis?Evaluate the similarity of risks that face both conventional banks and Islamic banks in 2020 and 2021You expect the Central bank to conduct expansionary monetary policy. What will be the impact on the following industries, would you recommend investing in them? : a) Gold mining b) Housing construction
- The International Monetary Fund, the IMF, has forecasted that the global economy is likely to experience a contraction of 3% in 2020, due to the ravages of the COVID-19 pandemic on both developing and advanced economies. Investors believe that The Deutsche Bundesbank, the central bank of the Federal Republic of Germany, will employ direct foreign intervention strategies in the future, to minimize the economic fallout and increase the volume of exports. Assume the following information: 1 - year U.S. interest rate = 3% 1- year German interest rate = 6% Spot rate of euro = $1.09 Compute the profit and yield to the investor who stands to benefit from covered interest arbitrage.The International Monetary Fund, the IMF, has forecasted that the global economy is likely to experience a contraction of 3% in 2020, due to the ravages of the COVID-19 pandemic on both developing and advanced economies. Investors believe that The Deutsche Bundesbank, the central bank of the Federal Republic of Germany, will employ direct foreign intervention strategies in the future, to minimize the economic fallout and increase the volume of exports. Assume the following information: 1 - year U.S. interest rate = 3% 1- year German interest rate = 6% Spot rate of euro = $1.09 Draw a diagram to illustrate your understanding of the relationship between interest rate parity and covered interest rate arbitrage and the interplay of market forces that will occur to eliminate arbitrage opportunities.6) Suppose that the European central bank increased money supply right after you bought the European financial assets. How that change might affect the expected return you will get at the end of the period as an American investor? (Use graphs)
- Which factor below is causing many of the world's top financial institutions to consider moving their global operations out of London and shift them to other financial capitals within the Eurozone? economic uncertainty high interest rates Brexit high-risk venturesSince the collapse of the Bretton Woods agreement in the 1970s the IMF & World Bank have played an important role in stabilizing the financial markets around the world. Are they effective in that role today especially in light of the 2008 financial meltdown - could it happen again?It is widely expected that LIBOR (London Inter-Bank Offer Rate) will no longer be available as a global reference rate after 2021. Explain in detail the impact of this major change in the international financial markets, addressing current use of LIBOR in international finance (be comprehensive in identifying how LIBOR is used), the risks introduced by its projected "demise" (financial, operational, transactional, etc), and the efforts underway in the US and other major markets to manage the transition to an alternate reference rate.