In the next month’s upcoming Monetary Policy discount rates are expected to increase by 200bps. In this case, the Money Market dealer should invest in which of the following and why? 1) Daily Product 2) 6-Months T-Bills 3) 6-Months TDR
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In the next month’s upcoming
1) Daily Product
2) 6-Months T-Bills
3) 6-Months TDR
Step by step
Solved in 2 steps
- A bank currently has deposits of $80000. It has actual reserves of $6000 of which $2000 are excess reserves. What is the RRR?Your firm is based in the UK, just received USD 825,000 from a customer in the U.S., and wants to convert the USD to GBP. The bank is quoting a spot rate of GBP/USD 1.2283 - 1.2425. How much will you receive in British pounds (GBP)? A. GBP 1,013,348 B. GBP 663,984 C. GBP 671,660 D. GBP 1,025,063Martin Shrood purchased a vacant lot outside of London for £13,500, because he heard that a shopping mall was going to be built on the other side of the road. He figured that he could make a bundle by puttingin a fast-food outlet on the site. As it turned out, the rumor was false. A sanitary landfill was located on the other side of the road, and Martin’s land was worthless. (£ denotes the British monetary unit, pounds sterling.)*Required: With respect to the economic characteristics of costs, what type of cost is the £13,500 that Martin paid for the vacant lot?
- True or False 2. The Fed uses the monetary policy tool of open market operations to affect interest rates. Type out the correct answer within 40 min with proper explanation of it. Will give you thumbs up only for the correct answer. Thank youIf you go to an Islamic bank and ask for financing for following purposes, which financial product Islamic bank will most likely to use and why? 10 years financing to start a new project 5 years financing to construct a house on your land 3 years financing for a heavy duty generator 6 months financing for IPhone 12Generally, the process of moving money forward in time is referred to as discounting. Select one: O True O False
- If you go to an Islamic bank and ask for financing for following purposes, which financial product Islamic bank will most likely to use and why? decribe in 800 words. 10 years financing to start a new project 5 years financing to construct a house on your land 3 years financing for a heavy duty generator 6 months financing for IPhone 12Owing to increasing, food and transport prices, the Consumer Price Index (CPI) in South Africa accelerated from 6,5% to 7,4% in June 2022. As a result, the monetary policy committee (MPC) decided to increase the repurchase rate by 75 basis points to 5,50% per year, with effect from 22 July 2022. with the aid of a diagram, explain how the money market in South Africa will be affected by the MPC's decision to increase the interest rate. The direction of any changes should be clearly indicated by using arrows.Derive the MC from the TVC
- Discuss crypto currency and blockchain technology and how they might impact the economy. Discuss some of the ethical considerations associated with AI and Automation and the impact they may have on the economy.Find the new deposits when the required reserve ratio is 20% and the initial change in the volume of deposit is 1000!!!Sustaining members of public radio stations, such as WRKF in Baton Rouge and WWNO in New Orleans, make fixed monthly monetary donations to support the programming on those stations. These charitable donations are an example of which of the following functions of money? Select one: A. Unit of account. B. Standard of value. C. Medium of exchange. D. Means of unilateral payment. E. Standard of deferred payment.
