How do central bank digital currencies (CBDCs) influence traditional monetary policy tools, and what implications might their widespread adoption have on international financial stability and cross- border payments?
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- William does not feel comfortable with the currentlevel of the European Central Bank’s independence.Put yourself in William’s shoes and state an argumentagainst the current level of the European Central Bank’sindependenceA central bank has set a target cash rate of 1 %, while paying banks 0.75% on their exchange settelement account balances and charging an interest rate of 1.25% to banks needing to borrow reserves overninght from the central bank. Suppose that central bank purchases large quantities of government bonds from private banks and other investors, as part of a policy of quantiative easing , without changing any of the above interest rates. what will happen to the cash rate? 1, it will fall towards 0.75% 2, it will remain at 1.0% 3, it will rise to 1.25% 4, it will rise to 1.25% 5, it will fluctuate between 1.25% and 1.75% 6, it will fail to 0%Smaller firms tend to rely more on financial intermediaries to obtain funds externally due to high transaction costs and information costs. A. True B. False
- Discuss the view that ALM is if no significant in contemporary banking industry due to technological advancement and globalizationFORUM DESCRIPTION IS CRYPTOCURRENCY MONEY, WILL IT INSTRUCTION: You are required to post an original comment and also respond to at least two other comments to agree/clarify/disagree BECOME MONEY, & WHAT MAY BE THE EFFECT OF CENTRAL BANK DIGITAL CURRENCY ON PRIVATE CRYPTOS? In your post, give us one reason, based on definition of money, for or against adopting cryptocurrency as money, exactly like the dollar. Also, given that we do not use cryptocurrency to pay for grocery in almost all countries and territories, give two key reasons why it has not been widely accepted as money. What is the effect of central bank cryptocurrency (like digital dollar or Yuan) on your previous answer?Questions: how cryptocurrencies are affecting the world's economy? https://www.aier.org/article/sound-money-project/cryptocurrencies-are-here-stay?gclid=EAIaIQobChMIk8WivrT44wIVFYTICh0w5gZmEAAYBC
- In the hypothetical country of Westlandia, banks are required to hold 20% of checkable deposits as reserves, and the public holds 50% of the loans as currency in circulation and redeposits the remaining 50% percent of the loans. Round Deposits Required Reserves of 20% Excess Reserves New Loans 50% of loan proceeds are held as currency in circulation by people Loan proceeds redeposited 1 $500 100 400 400 200 200 2 400 80 320 320 160 160 3 320 64 256 256 128 128 4 256 51.2 204.8 204.8 102.4 102.4 5 204.8 40.96 163.84 163.84 81.92 81.92 6 163.84 32.76 131.08 131.08 65.54 65.54 7 131.08 26.21 104.87 104.87 52.43 52.43 8 104.87 20.97 83.9 83.9 41.95 41.95 9 83.9 16.77 67.13 67.13 33.56 33.56 10 67.13 13.44 53.69 53.69 26.84 26.84 Totals 2,231.62 446.31 1,785.31 1,785.31 892.19 892.19 In the…9. How would you incorporate security considerations/costs into the transactions demand model? What would this imply for the demand for currency in a relatively insecure urban environment (a) compared with a relatively safe one, (b) when owner-identified smart cards become available? Do these factors affect the demand for demand deposits? How would the proportion of currency to demand deposits be affected in these cases? 10. Can the transactions demand model be used to explain why financial innovations in recent decades have reduced the transactions demand for M1? 11. Are transactions demand models useless, as Sprenkle (1969) argued? If they are, how would you explain the demand for M1 or just for demand deposits in the economy?1. Discuss the role and function of any large financial institution in your country as well as THREE impacts that that intuition has on the economy of your country . Any financial institution excluding the Central Bank. 2. Discuss THREE monetary strategies currently implemented in your country. 3. What are the benefits of the type of monetary policy strategies that instituted mentioned above? What were the pitfalls in the strategy?
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