process of obtaining a bank deposit operations profit or create the conditions for a profit in the future‚ also performs several important functions in efficient operation of banks: maintaining the necessary level of liquidity‚ holding a flexible interest rate policy‚ the development of banking services and the quality and culture of customer service. Therefore‚ the object of this work is to deposit market‚ its organization and structure. The subject of research is the organization of deposit operations
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i)20 2. If there is a decline in interest rates‚ which would you rather be holding‚ long-term bonds or short-term bonds? Why? Which type of bond has the greater interest-rate risk? You would rather be holding long-term bonds because their price would increase more than the price of the short-term bonds‚ giving them a higher return. 3. A financial advisor has just given you the following advice: “Long-term bonds are a great investment because their interest rate is over 20%.” Is the financial
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Q1. What is monetary policy? Answer:- Monetary policy is government change in money supply to influence the economy‚ to solve economies problems. Economies problems include inflation in boom‚ unemployment etc. change in the money supply move interest rates up or down and affect spending in sectors such as business investment‚ housing‚ and foreign trade. Monetary policy has an important effect on both actual GDP and potential GDP. Q2. If the government wanted to slow down the economy (when
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bank – most important financial institution in the financial system – government agency responsible for the conduct of monetary policy – in USA: Federal Reserve System. Monetary policy involves the management of interest rates and the quantity of money. Monetary policy affects interest rates‚ inflation‚ and business cycles‚ all which have major impact on financial markets and institutions. Chapter2 * Indirect finance – borrower and the people with excess cash‚ never deal with one another‚ borrower
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considered to be a goal of monetary policy? 4) Inflation is an economic problem because it 5) Rates of inflation in the hundreds or thousands of percent per year are known as 6) Which of the following countries experienced hyperinflation during the 1920s? 7) The Employment Act of 1946 codified the federal government’s commitment to 8) Most economists believe that a zero rate of unemployment 9) John Smith leaves his job in York to go to California in hopes of finding a better
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of scenario. The economy sure has not bounced back enough because the unemployment rate was between 8.1 and 8.3 percent all of 2012. There is no way that that is an acceptable unemployment rate for an “expanding” or “growing” economy. Before we get into what the current prime rate is‚ I think it is imperative that we first explain what a prime rate is. The U.S. Prime Rate is a commonly used‚ short-term interest rate in the banking system of the United States. All types of American lending institutions
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WO R K I N G PA P E R S E R I E S N O. 3 5 9 / M AY 2 0 0 4 THE LONGER TERM REFINANCING OPERATIONS OF THE ECB by Tobias Linzert‚ Dieter Nautz and Ulrich Bindseil WO R K I N G PA P E R S E R I E S N O. 3 5 9 / M AY 2 0 0 4 THE LONGER TERM REFINANCING OPERATIONS OF THE ECB 1 by Tobias Linzert 2‚ Dieter Nautz 3 and Ulrich Bindseil 4 In 2004 all publications will carry a motif taken from the €100 banknote. This paper can be downloaded without charge from http://www
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Fundamentals of Macroeconomics In this essay I will describe the fundamentals of GDP‚ unemployment rate‚ inflation rate‚ and interest rate. Also I will be explaining how some common occurrences such as buying groceries‚ massive layoffs‚ and a decrease in taxes affect the government‚ businesses‚ and even you. Lets start with GDP. What is GDP you ask? GDP stands for Gross Domestic Product and represents the total market value‚ in dollars‚ of goods and services. There are 4 main components that
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The present growth rate of our country has dropped to nearly three and a half year low of 5.5%. India’s GDP growth for the 1st quarter of the current FY 2012-13 stood at 5.5% compared to 5.3% in the last quarter of the previous financial year. Also it is much lower compared to 8% GDP growth in the same quarter last financial year. Though the inflation has fallen to eight month low of 7.45% in October 2012 from 7.81% the previous month‚ but it is certainly at a very high rate. The reason for the
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monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increases the money supply. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity. Quantitative easing is considered when short-term interest rates are at or approaching zero‚ and does not involve the printing of new banknotes. Typically‚ central banks target the supply
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