Many countries have policies that limit how much interest a moneylender can charge on a loan. Do you think these limits are a good idea? Who benefits from the laws and who loses? What are likely to be the long-term effects of such laws?

Q: rates affect business? Consumers?

A: Market interest rate plays extremely essential part in the business and customer spending in light…

Q: The table below shows the amount of savings and borrowing in a market for loans to purchase homes,…

A: At the equilibrium interest rate quantity demanded is equal to quantity supplied. It is clear from…

Q: Robust economic growth shifts the transactions demand for money. Consequently, growth will tend to…

A: Economic growth exhibits that economic transections are more frequent in the economy. Thus, an…

Q: Activities in financial markets have direct effects on individual wealth, the behavior of business,…

A: In the case of individuals' wealth real estate market also has a significant effect on an…

Q: Who benefits when the Bank of Canada lowers interest rates? Who benefits when interest rates rise?…

A: Firms ( who are borrowing ) and consumers benefit when the Bank of Canada lowers interest rates.…

Q: Suppose that on January 1, 2022, the price of a one-year Treasury bill with a face value of…

A: Given: The face value is = $1,000 The price value is = $926.78 The real interest rate turns out to…

Q: If government spending were increased, what would occur to interest rates

A: Government spending refers to the money spent by the government on things like health care,…

Q: If all banks operate under a full reserve system, how much money is created by the banking system…

A: 1) Under the full reserve system, the bank will serve as an intermediary for the people whose…

Q: Please discuss the following. 1. Financial markets are institutions and systems that facilitate…

A: The term "financial market" refers to a place or platform where stocks, bonds, currencies, and other…

Q: What is the most important way for an economy to recover from an economic crisis caused by credit…

A: Credit denotes a loan, while credit growth denotes the taking of more loans. Credit expansion is the…

Q: It is a well-known fact that high-interest rates make loans more expensive. When interest rates are…

A: An interest rate is either the the reward for saving  cost or the cost of borrowing money. It is…

Q: the quantity of money supplied exceeds the quantity of money demanded then what can you say about…

A: *Answer: .

Q: What are the main functions of banks? Explain the role played by commercial banks in the economic…

A: Function of commercial banks:-  Primary Functions 1) Accepting deposits:- Primary function of…

Q: Briefly discuss how the central bank plays the role of controller of credit in an economy?

A: Commercial banks tend to create during their course of operations a lot of credit. This credit could…

Q: Suppose that political instability in other countries makes people fear for the value of their…

A: Exchange rate refers to the value of one country's currency for the purpose of conversion to another…

Q: Predict how each of the following economic changes will affect the equilibrium price and quantity in…

A: Whenever demand rises, the demand curve will shift to the right and whenever demand falls, the…

Q: When interest rates are expected to rise in the future, a banker is likely to (maybe more than one…

A: When interest rates are expected to rise in future. Bankers would want long term benefits.

Q: many people keep their savings in the piggy banks, it does not help the financial system to function…

A: Banks and other financial institutions give amazing chances to saving and contributing by people,…

Q: Which of the following is true concerning IRA’s, 401(k) and 403(b) plans?   a. There are no limits…

A: IRA’s 401(k) and 403(b)plans are the plans for retirement planning. Plan 401(k) is a plan which has…

Q: Question 5, When banks have a lot of money, interest rate will be low to attract borrowers. High to…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: From our discussion of interest rate frameworks, we can guess that the demand for liquidity is…

A: Liquidity refers to the flow of money into the economy which increased when the banks lower the rate…

Q: Explain how an increase in the money supply can affect the following in the short run: The supply of…

A: The money supply is the total amount of currency and other liquid assets in a country's economy on a…

Q: Suppose that interest rates are 6 percent in the economy and a safe bond promises to pay $3 per year…

A: A bond is a fixed income instrument that represents a loan made by an investor to a borrower…

Q: The main impact of quantitative easing on the economy is that it 1, pushes long-term interest rates…

A: Quantitative easing is a tool of expansionary monetary policy.

Q: Thinking about a bond, an economist would argue that it really is ... Group of answer choices 1. A…

A: When talking about bonds in economics, it is considered as a monetary instrument that is used to…

Q: The following equations describe an economy. (Think of C, I, G, etc as being measured in billions…

A: * ANSWER :-

Q: The Federal Reserve system is a debt-based financial system because

A: Other Options are wrong because  2) This option also wrong 3) Federal financing allows banks to…

Q: The premier rate, the rate on corporate paper, the simple interest rate on a bank loan requiring…

A: Introductions, Loan:- It alludes to the cash that people borrow from friends, family, or banks.The…

Q: One of the biggest problems for any economy is to figure out how to get or transfer money from…

A: Financial markets are very important for the economy. Financial markets include capital market and…

Q: What are the financial institutions that make up our banking system? Briefly describe their role…

A: The financial institutions that make up our banking system along with their role is mentioned below:…

Q: Imagine you saved $2,500 at Bank of Prosperity. There, they maintain a reserve requirement of 9%.…

A: * SOLUTION :-

Q: Draw a graph depicting interest rates at the quantity of loanable funds. Answer the following…

A: Market for loanable funds studies the behavior of interest rate and quantity of loanable funds with…

Q: 6. In an essay no less than 300 words, describe how banks can create money.

A: Banks create money through a system of banking known as fractional reserve banking. It is a system…

Q: The Federal Deposit Insurance Corporation is at least partly to credit for which of the following?…

A: Federal Deposit Insurance Corporation is one of those two organizations that provide insurance to…

Q: Which state body determines the value of the interest rate and what instruments are used to regulate…

A: The central bank determines the value of the interest rate and what instruments are used to regulate…

Q: Using the accompanying diagram, explain what will happen to the market for loanable funds when there…

A: Loanable Funds Market is the one where where the activity of borrowing takes place. Here, savers…