Other Economics Answers

The RESERVE BANK can increase the money supply in the market by:

Select one:

a. buying government securities

b. none of the given options

c. borrowing money from commercial banks

d. selling government securities

The relationship between the change of real output and the unemployment rate in the US economy was examined by Arthur M. Okun (1928-1980). How was the theory of business cycle placing an important position in his work? Elaborate.

1 . Explain whether each of the following events shifts the short-run aggregate supply curve, the aggregate demand curve, both or neither. For each event that does shift a curve, draw a diagram to illustrate the effect on the economy.

a. Households decide to save a larger share of their income.

b. Sri Lankan farmers suffer a prolonged period of unfavorable weather conditions for agriculture.

c. Increased job opportunities overseas cause many people to leave the country.

 List some empirical examples to support each theory which explains why the short-run aggregate supply curve is upward sloping

1.      Discuss the reasons for regulatory failures in banking. Use examples to illustrate answer
2.     Discuss the key roles of central banks in ensuring financial stability
3. Explain the “three lines of defence” in risk management
4. Briefly discuss the 03 types of banking regulations

Izmir Construction is a company engaged in construction in Turkish west. On 1 January 2021 it issued 5,000 5-year bonds with a par value of $1,000 per bond. They have a current market price of $975, carry annual coupon rate of 9% and are callable at 105 anytime in 3rd, 4th or 5th year. The interest rate in year 3, 4 and 5 are 10%, 8% and 9%. Estimate the yield to call (YTC) and yield to maturity (YTM) and tell which rate is a better estimate of the expected rate of return on the bond

In economics, "the long-run" is referred to as