What are conventional monetary tools used by central banks?

Q: In which economic conditions would a central bankwant to use a “forward-guidance” strategy? Based…

A: Forward guidance refers to the communication from the central bank regarding the prevailing state of…

Q: Explain in detail the function played by the money market in the financial market.

A: Money market is a type of market which involves trading in short-term debt financial instruments.

Q: What are the main functions performed by commercial banks?

A: A type of financial institution that is permitted to accept deposits and provide loans is called the…

Q: The Money Markets is different from the Capital Markets. What are the financial instruments traded…

A: Money Market : Money market is the financial market where the instruments that have a short term…

Q: Indirect Intervention How can a central bank use indirect intervention to change the value of a…

A: Central bank can use indirect intervention to change the value of the currency by making necessary…

Q: How do the central banks implement expansionary monetary policy using monetary policy tools?…

A: Solution Step (1) Expansionary Monetary Policy The expansionary fiscal policy works by increasing…

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Securitization is a process in which various financial assets are merged to create an instrument,…

Q: What are the major risks faced by financial institutions?

A: MAJOR RISKS FACED BY FINANCIAL INSTITUTIONS ARE : 1. INTEREST RATE RISK  2. CREDIT RISK 3. LIQUIDITY…

Q: What role do financial markets play in our economy and what is the relationship between financial…

A: Financial institutions are intermediaries that transfer funds, securities, other financial…

Q: Describe the Federal Reserve Banking System. Which is the most vital? Which is less important? Why?

A: This question explains about the Federal Reserve Banking System is a system of banks run by the…

Q: What is a function of a central bank? A collecting taxes B issuing currency C providing bank…

A: Central banks are important in the economic development of nations and maintaining liquidity and…

Q: Is Modern banks are both financial intermediaries and risk intermediaries? And why

A: Yes, modern banks are both financial intermediaries and risk intermediaries since they exist among…

Q: What are the implications of the transformation function for the liquidity position of the bank?

A: Answer: Introduction: Liquidity is nothing but the ability of the bank to turn money into cash and…

Q: What makes the banking industry a specialized industry?

A: Solution:- Introduction:- Accounting means art of recording, classification, measuring transactions…

Q: Why do managers of financial institutions care so muchabout the activities of the Federal Reserve…

A: SOLUTION:- Federal reserve system is main body or authority in of the U.S. which takes care of the…

Q: Requiring a foreign banks to operate under the same rules as domestic banks is termed?

A: The question is based on regulation of banking operation, under the provision of International…

Q: )What is the role of a central bank? b)Why is it argued that a central bank should be independent…

A: A central bank is a financial institution having control over the production and distribution of…

Q: credibillity of monetary policies

A: Monetary policy is a policy formulated by the central bank of a country. It stabilizes the supply of…

Q: What is the relationship between securitization and the role of financial intermediaries in the…

A: Introduction: Financial markets are markets where the exchange of financial securities takes place.…

Q: What is currency manipulation?

A: Introduction: Currency manipulation is considering as when countries purposely impact the exchange…

Q: Do U.S. GAAP and IFRS differ in how bank overdrafts are treated? Explain.

A: Generally Accepted Accounting Principles:   GAAP (Generally Accepted Accounting Principles) is a…

Q: How does credit risk for a financial institution differs from default risk and What are the problems…

A: Lender loans money to the borrower, and there subsist as the risk of non-repayment of loan or…

Q: Discuss with examples why the money markets could be considered arguable as playing complementary…

A: The complementary role of Money Markets with banks is discussed as follows: The money market is a…

Q: what are the tools the Federal Reserve uses to control monetary policies.  Expand on how the Federal…

A: Monetary policy is the tools and technique which is used by the government in order to control the…

Q: What are the issues associated with international banking and finance transaction that require…

A: As a part of the international financial system, banking and financial institutions are important…

Q: Discuss the Basel disintermediated scenario and its impact on incumbent banks?

A: Better Bank: modernization of incumbent actors and digitalization The new bank: substituting…

Q: What is bank resolution?

A: Resolution takes place on the identical time whilst the authorities decides that the economic…

Q: what are treasury notes?

A: Treasury notes: Treasury notes are interest-bearing securities with a static maturity of not fewer…

Q: 3. How do the central banks implement expansionary monetary policy using monetary policy tools?…

A: The policy that a central bank undertakes to raise the monetary expansion rate and promote domestic…

Q: Briefly discuss the cause and the solution(s) to the international bank crisis involving…

A: The origin of the international bank crisis affecting LDC’s is attributed to the largest…

Q: What is a bank reconciliation?

A: The statement of Bank reconciliation is a report that matches the money balance on an organization's…

Q: financial institutions im

A: Introduction : In simple words, financial institutions refers to the entities that are engaged in…

Q: Which of the following functions of the Commercial Bank's primary functions is influence by the…

A: Solution:- Reserve Requirement Ratio (RRR)  means the minimum amount of deposit a bank has to keep…

Q: What is the prime rate and how is it used by financial institutions?

A: Prime rate : Prime rates is the rate charged by the commercial banks on the customers that are…

Q: Why regulations are important for Banks.

A: The most important rationale for regulation in banking industry is to concerns over the stability…

Q: 1. What is a Central Bank Balance Sheet?

A: Balance Sheet:   It is a financial statement prepared by an organization at the end of the trading…

Q: Why is the bank important to our society?

A: The bank is highly important to our society. It should be noted that banks, on an overall basis, are…

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.