1. Suppose that changes in bank regulations expand the availability of credit cards so that people need to hold less cash. If the central bank does not respond to this event‚ what will happen to the price level? Use a diagram to assist in answering this question. [5 marks] 2. Use the loanable funds model to explain what happens to interest rates and investment if a government moves from a balanced budget position to a budget surplus. [10 marks] 3. Suppose that the T-account for The Open Campus
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Comments on The Present Global Financial Crisis and Sri Lankan Economy by Mr Ajith Nivard Cabraal‚ Governor of the Central Bank of Sri Lanka 10 October 2008 1. The Global Economy is in Turmoil. The ongoing financial crisis originated as a result of the subprime mortgage crisis (SMC)‚ erupted in mid 2007. The SMC erupted due to the bursting of the US Housing Bubble and high default rates on “Sub Prime Mortgages”‚ beginning 2006. The major cause for this financial crisis was the reckless providing
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EXCHANGE RATES The exchange rate is the price of one country’s currency in terms of another country’s currency Quoted exchange rates can be either direct or indirect‚ Direct: home currency per unit of foreign currency 39 Rupees per US Dollars 80 Rupees per Pound Indirect: foreign currency per unit of home currency 0.0255102 US Dollar per Indian Rupee 0.491594 Pound per Indian Rupee Appreciation of Currency Currency Appreciation means that the given currency
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Chinchilla - 1st Vice-President Alfio Piva - 2nd Vice-President Luis Liberman Legislature Legislative Assembly Independence declared - from Spain September 15‚ 1821 - from Mexicoa July 1‚ 1823 - from United Provinces of Central America March 21‚ 1847 - Recognized by Spain May 10‚ 1850 - Constitution November 7‚ 1949[2] Area - Total 51‚100 km2 (128th) 19‚653 sq mi - Water (%) 0.7 Population - 2011 census 4‚301‚712[3] - Density 84[3]/km2 (107th)
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transacts the business of banking Banking System: Banking System is a principal mechanism through which the money supply of the country is created and controlled. The banking system enables us to understand Commercial Banks‚ Secondary Banks‚ Central Banks‚ Merchant Bank or Accepting Houses and Discount Houses but to exclude the Saving Banks and Investment and other intermediaries. Number and types of Banks: The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks‚ four
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directly add to the volume of real capital formation. They are only the intermediaries between savers and users of the funds. CENTRAL BANK: Central Bank plays an important role in the monetary & banking structure of a nation. It supervises controls & regulates the activities of banking sector. It has been assigned to handle & control the currency & credit of a country. Central banks have to perform following functions: Regulation of currency in accordance with the requirements of business & general
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where it was founded)‚ is the government’s bank and the UK’s central bank. It issues bank notes‚ controls the UK gold reserves and‚ since 1997‚ has set official interest rates ; maintains the stability of the financial system by monitoring and analyzing the behavior of participants in the financial system‚ and the financial and economic environment; and offers technical assistance and advice to other central banks‚ through its center for Central Banking Studies. Lender of last resort: In case of major
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Essay Human kind has always displayed a desire‚ within their literature‚ to engross themselves on a journey of self reflection. However often these journeys can also be negatively forced upon a character. Skrzynecki‚ in his text ‘Immigrants at central station’ explores how forced journeys have dehumanised and isolated his family on their journey of migration. However‚ in ’10 Mary street’ Skrzynecki focuses on positive outcomes of journeys that him and his family have taken on their own. Furthermore
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LAWS OF MALAYSIA Act 276 Islamic Banking Act 1983 Date of Royal Assent Date of publication in the Gazette 9-Mar-1983 10-Mar-1983 An Act to provide for the licensing and regulation of Islamic banking business. PU(B) 182/1983 [7th April 1983] ARRANGEMENT OF SECTIONS PART I PRELIMINARY 1. Short title‚ commencement and application. 2. Interpretation. PART II LICENSING OF ISLAMIC BANKS 3. Islamic banking business to be transacted only by a licensed Islamic bank. 4. Minister may vary or
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Another problem prior to the establishment of the Federal Reserve System was the inelasticity of bank credit and the supply of money. Small banks placed their excess reserves in large central reserve banks. Whenever a bank ’s depositors wanted their funds‚ the smaller banks would be covered by the central banks. The system worked well during normal conditions. Some banks would draw down on their reserves as other banks would be building up their reserves. In times of excessive demand‚ however
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