In the current pandemic situation, State Bank of Pakistan lower the interest rate (KIBOR) from 13.75% to 7%. How this change could help to revive the economy? What other monetary policy measures could be taken by state bank of Pakistan in this situation?
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In the current pandemic situation, State Bank of Pakistan lower the interest rate (KIBOR) from
13.75% to 7%. How this change could help to revive the economy? What other
policy
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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?If a central bank decreases interest rates, then gradually: a. the country's gross domestic product is likely to decrease. b. foreign exchange rate is likely to appreciate. c. demand for exported goods and services is likely to increase. d. flows of investment funds into the country are likely to decrease.H3. The Central Bank of the Bahamas pegs the Bahamian Dollar to the United States Dollar at a price of 1 BSD per USD. As an analyst for XYZ Consulting Inc., you have been asked to predict the behavior of key macroeconomic variables in the Bahamas for different policy scenarios. Using all the appropriate diagrams, your analysis must describe the Bahamian money and output markets, as well as the foreign exchange market. To perform this task, you must assume that prices are sticky: fixed in the short-run and flexible in the long-run. The scenarios are: a) A temporary restrictive monetary policy in the Bahamas. b) A temporary restrictive fiscal policy in the Bahamas.
- 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?If JFINEX Bank has 10B in Peso Savings deposits, 10B worth of dollar deposits, 20B in Peso Demand deposits, and 30B in Peso Time Deposits, what is the maximum amount the bank can lend after complying with the current local reserve requirement set by the BSP? 7.20B 61.60B 8.40B 52.80B Which of the following scenarios is considered an expansionary monetary policy? A hike in reserve requirement of banks Policy rate cut by the central bank Decrease in income tax collection Both B and C Mr. JFINEX is short of funds of $10MM. He can borrow from the following counterparties with their respective bid-offer quotations applicable for O/N or 1 week: Bank A: 0.10% - 0.16%; Bank B: 0.13% - 0.17%; Bank C: 0.12% - 0.15%. At what rate will he borrow assuming there is no borrowing limit? 0.15% 0.13% 0.10% 0.17% You want to buy 30MM pesos worth of RTB 10-21. At what rate can you buy the said GS to minimize cost given quotes from the following counterparties? Bank A: 3.60% –…Based on the information in the Press Release in 2018 by Bank of Ghana, in the thinking Of the NIPC did the risk to growth outweighed the risk to inflation or vice versa. Required: In ordinary language, explain how the reduction in the Monetary Policy Rate will help the relative risk identified in the Press Release in 2018 by Bank of Ghana
- What are the changes in the following parameter / parameters in order to increase the value of the national currency and reduce the inflation rate? And what are the effects of these changes on currency risk, interest rate risk, price risk, country risk, GNP, current account deficit? Analyze and interpret.Moody's rating downgraded from 'Ba' to 'B', Foreign direct investment amount is low, Portfolio investments are high, Inflation rate: 15%Interest rate: 10%€ / $ = 0,2755If a country is having its currency pegged to the U.S. dollar (hard peg), and the confidence in the domestic currency falls, sparking a capital outflow. What action would its central bank take to defend its fixed rate against the dollar? Question 23 options: It would build up its international reserve (selling the domestic currency) It would dip into its international reserve (buying the domestic currency) It would raise domestic interest rates It would lower domestic interest rates(a) Suppose that the economy of Microland is expanding rabidly. Due to this rapid expansion, the Federal Reserve Bank is pursuing a contractionary monetary policy. Draw clearly labeled graphs for each market (Money market, Goods Market and Investment) to show the effects of this policy on the equilibrium interest rate, investment and output. (b) Suppose that the economy of Macroland is expanding rabidly. Due to this rapid expansion, the Federal Government is pursuing a contractionary fiscal policy. Draw clearly labeled graphs for each market (Money market, Goods Market and Investment) to show the effects of this policy on the equilibrium interest rate, investment and output. Is there any crowding-out due to the contractionary fiscal policy?
- Does the effect of Turkish inflation on the decline in the Lira's value support the PPP theory? How might the relationship be distorted by political conditions in Turkey?1. With emphasis on Ghana’s monetary system, explain the term inflation targeting. Hence, highlight the core objective of monetary policy and the tools adopted by the mother bank, the Bank of Ghana in carrying out the monetary policy 2. Assuming the Nigerian Government through the Federal Bank of Nigeria sells government bonds to fight Ebola, and at the same time NIGEL Oil Firm is also selling corporate bond to increase its production. Under what conditions will the production-linked corporate bond be over-subscribed at the expense of the government bond. Kindly explore all possible scenarios 3. Explain in detail how an improvement in the national identification system can reduce adverse selection and moral hazard in the banking sector. Explore all possible scenariosIf US dollars gets lower interest rates in the United States. How would this affect a fundamental forecast of foreign currencies? How would this affect the forward rate forecast of foreign currencies?