The functions of the World Bank evolved in response to... the increase in protectionism. the creation of the Marshall Plan. O the shift to floating exchange rates. O the competitive devaluation of currencies.
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- The functions of the World Bank evolved in response to (Choose one answer) 1. the creation of the European Recovery Program. 2. the competitive devaluation of currencies. 3. the increase in protectionism. 4. the shift to floating exchange rates.During crises like the COVID-19 crisis, major currencies such as U.S. Dollar and Euro should appreciate against currencies associated with developing countries. Do you agree with this statement? Discuss. Your answer should be linked to different concepts (e.g., PPP, IRP, IFE, and currency hedging)What has been the role of IMF loans in international affairs addresing financial crisis? Why are they so controversial?
- What is the function of the international money markets? Briefly describe the reasons for the development and growth of the European money market.International banking is both necessary and sufficient for financial development and stability, especially for developing countries. Is the statement true?How do the central banks implement expansionary monetary policy using monetary policy tools? (Explain with examples)
- 1. A. Identify and explain the functions of financial intermediation. B. Why does the lack of an efficient and effective system of financial intermediation act as an impediment to the economies in developing countries (comprehensive answer required)?Explain the managed floating exchange rate regime. How can the monetary authorities prevent effects of these exchange rate regime on money supply level and why the most of the emerging countries prefer to use this policy?For each of the following monetary policy tools:A. The BSP buys securities in the open market.B. The BSP sells foreign exchange currentC. The BSP increases the reserve requirement ratio.D. The BSP applies its moral suasion ability requesting commercial banks to lowerdown interest rates.E. The government decided to deposit funds at the BSP.1. Determine whether the monetary tool imposed by the BSP is an expansionary or acontractionary policy.
- Monetary policy in Australia is implemented by the Reserve Bank, and currently is principally directed towards: A: affecting the level of short-term interest rates B: effecting a reduction in the current account deficit C: affecting the level of growth in the money supplyAs foreign exchange activity has grown, a given degree of central bank intervention has become: A. more effective. B. more frequent. C. none of these D. less effective.Answer the following: a. Explain why the interest parity condition must hold if the foreign exchange market is in equilibrium. b. Explain why overshooting occurs. What can the Central Bank do to mitigate its effects?