Economics Student ID: B10016191 Name: Lee Sun Seok 李淳碩 (Tim) Q1. How does the government use the fiscal policy and monetary policy to stabilize the economy? ◆ According to the basic Keynesian model inadequate spending is an important cause of recessions. To fight recessions- at least‚ those caused by insufficient demand rather than slow growth of potential output- policymakers must find ways to stimulate planned spending. Policies that are used to affect planned aggregate expenditure
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RBI (Reserve Bank of India)‚ India’s Central Bank came into existence on 1stApril 1935 as a private share holders bank. Functions of RBI : Monopoly of Note issue Banker‚ Adviser and Agent to the Govt. of India Banker to Banks Custodian of Foreign exchange and gold. Re-discounts bills of exchange and hundis. Lender of last Resort Maintains stability of foreign value of Rupee. Acts as clearing house Credit control iti ww 8A Gr RBI’s central office is in
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1. Type of basic mechanisms for exchange rates a). Free float Free floating or clean float is a type of country’s exchange rate regime where a currency’s value is allowed to fluctuate according to the foreign exchange market. Free floating exchange rate is determined by the interaction of currency supplies and demands with no government intervention. It always termed “self- correcting’ as if any differences in supply and demand‚ the exchange rate will automatically be corrected in the market
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Legal Studies University of Alabama‚ Box 870224 Tuscaloosa‚ AL 35487 Phone: 205-348-8971 Fax: 205-348-0590 Email: chueng@cba.ua.edu Are Policy Rules Better than the Discretionary System in Taiwan? ABSTRACT This paper investigates whether the central bank of Taiwan would have had a more successful monetary policy during the period 1971:1 to 1997:4 if it had followed an optimal rule rather than the discretionary policies that were actually employed. The paper examines the use of two different instruments—the
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insight of the PBOC’s Concretionary Monetary Policy 03 – 20 - 2011 As part of the China’s Monetary Policy team‚ most contributions were made on a shared basis with Ms. Fion Lau focusing on current policy implemented and tools used by the People’s Bank of China (PBOC) Benefited by Fion’s financial industry experience and access to various source including Bloomberg terminal‚ the data obtained is well collected and analyzed. Similar to that of the Federal Reserve‚ China’s monetary policy are designed
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Part B – Macroeconomics Question 10: a) Which of the following are final goods and services and which are intermediate goods and services? Please explain why in your answer. i) A windscreen purchased by a motor vehicle spare parts supplier; Intermediate goods – by national accounts (GDP) windscreen primary production value has already been accounted. It is being resold at a deflated value as second hand goods. ii) A new bulldozer to be used by a construction
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conducted by central banks? During the period of 1986 to 1991‚ the Japanese economy was experiencing an economic bubble that was characterized by highly inflated real estate and stock prices. The subsequent effects of the bubble’s inevitable collapse lasted over a decade with the stock prices reaching their lowest values during the year 2003. It was during this recessionary period of the early 2000s that the Japanese government began to purchase long-term government debt from banks as a means to
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The Role of Money in the U.S. Economy If you ask the average person what money is‚ you are undoubtedly going to receive some very strange looks. Money is a concept that many people take for granted. We know that money allows us to acquire goods and services‚ but what is its source of value? Money is paper‚ which is for all practical purposes; no different than the paper this text is written on. How then would anyone in his or her right mind trade a tangible object (like a new stereo or television)
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OFFICERS EXAM 2010 Q.1. In that sort of account‚ banks in all don’t compensate interest— (A) Saving Account (B) Current Account (C) Fixed Deposit Account (D) Interest is regularly upon credit in all sorts of account Q.2. A bank station sequence would be befitting for paying— (A) Telephone accounts (B) Electricity accounts (C) Grocery bills (D) Mortgage repayments Q.3. Payment of a coupon cannot be done upon a income opposite of bank if a coupon is— (A) Bearer (B) Cross (C) Order
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Macroeconomics | Assignment 1 | | | | Lecturer: Dr Jui Saprungrueng | Introduction The aim of this report is to identify the meaning of “Quantitative Easing” and why it was adopted by central banks during the recent financial crisis. It will also try to identify what central banks were trying to achieve by using Quantitative Easing and how they planned to achieve that. The report will look at other financial crisis’ where Quantitative Easing was adopted and whether it was successful
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