financial sector‚ their main intension is to stabilise the financial and monetary systems for growth. It regulates and supervises the banking industry‚ having authority of monetarism‚ currency issuer‚ banker to all banks‚ manages the foreign exchange‚ debt management to central government and developing leader of country...etc. some of the main activities we are going to analyze below are RBI as regulator Monetary policy Basel norms and impact on Indian industry Howe these typical concepts
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Background For the period of 1976 – 1983‚ Argentina severely suffered from junta or military dictatorship which is also known as the period of ‘National Reorganisation Process’.(Saxton‚ 2003‚ p.2). The Argentina crisis was as a result of the historical political unrests for many years which lead to economic upheavals during 1998 – 2002. During 1976‚ the government fought a ‘dirty war against guerrilla groups’. (Saxton‚ 2003‚ p.4). Thousands of Argentines died during the war‚ mostly as victims
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recently ran a budget surplus‚ but has since returned to running a budget deficit. 1. Explain why reducing the budget deficit can cause short-term pain in the form of lower employment‚ higher unemployment‚ and a recession. 2. Explain why expansionary monetary policy would help decrease the likelihood of a recession if it were adopted at the same time the budget deficit was being reduced. 3. Present an analysis that identifies any long term gains which could result from a reduction in the budget
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Question 1 1. Suppose the natural rate of unemployment is 5 percent. If the actual unemployment rate is 7 percent‚ then the cyclical unemployment rate is 2 percent. is -2 percent. is 12 percent. cannot be determined given the information. 5 points Question 2 1. Cyclical unemployment is positive when the inflation rate is positive. the economy is at the peak of a business expansion. the natural rate of unemployment exceeds the actual rate. the actual unemployment rate exceeds
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REVIEW FOR EXAM 1 Chapter 1 1. How do we measure standard of living Measuring the standard of living in a country is to use real national income per capita. This is found that dividing real national income (GDP or GNP) by the total population. 2. How can European Unemployment be reduced? Central bank should decrease interest rates‚ and allow for an increase in demand‚ and unemployment would decrease. They need to be less protective‚ to eliminate these labor market rigidities‚ and to
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Course: Economics 203 monday - 3-3:50 tuesday - 4:30-5;20 wednesday - 9 - 9:50 thursday - 8:30 - 9:20 Optional tutorials - SS403 Ta’s email uofcecon201203@gmail.com Get a scientific calculator for this course! Final exam is a lot harder then the midterm Class before the exam = questions we can ask him‚ he will do sample questions‚ sue – past midterm exams Chapter 8: Saving‚ Investment and The Financial System: The financial system consists of all those institutions in
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the Under Security of the Treasury for Monetary Affairs‚ Paul A. Volcker‚ Secretary of Treasury‚ John B. Connally‚ Jr.‚ the Chairman of the Federal Reserve‚ Arthur F. Burns‚ and the director of the Office of Management and Budget‚ George P. Shultz probably played a significant role in the initiative announced by President Nixon’s a nationally televised address on August 15‚ 1971. Volcker had been leading the effort to stabilize the international monetary system for the Nixon’s administration. The
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having a conversation with a Keynesian and a Classical economist‚ and the conversation turned to why the economy is experiencing high unemployment and what the government should do about it‚ how would each economist explain unemployment and what policies would each advocate? Keynesian economist believe that long periods of high unemployment are a result of inadequate overall demand and feel government intervention is a key component of a prosperous economy. The school of thought sees unemployment
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marginal utility? Utility: The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a collection of goods and services). • Marginal Utility: The extra utility a consumer obtains from the consumption of 1 additional unit of a good or service; equal to the change in total utility divided by the change in the quantity consumed. The customer will buy more units if they get extra satisfaction
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Maastricht Treaty the EC heads of state and government agreed on a three-legged "European Union" (EU) on December 9 and 10‚ 1991‚ which should include a common foreign and security policy‚ cooperation on domestic and security policy and the creation of a European Economic and Monetary Union (EEMU). The European Monetary Union (EMU) is to be effected according to a concrete time schedule - the three-stage plan which was agreed upon in the Maastricht Treaty and the conversion plan which was decided
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