Economics Answers

Suppose the regulator asks one of the losses making Bank XYZ to close a few branches

to reduce cost thereby make the bank more sustainable/profitable. But XYZ Bank

refuses to close its few branches, citing some risk/s involved in the process. What are

the risks XYZ Bank perceives if it closes a few branches?

Which are the major risks banks are exposed to and how they mitigate it?

Credit appraisal is a critical analytical tool of bank. Largely the profitability of bank

hinges on this tool. Any weakness on this front is reflected on the profitability of banks

and it also results in accumulation of stressed assets. BASEL-II has given strong

recommendations to check this menace. Elaborate in details the important

recommendations of this committee.

One of the important mandate of RBI is prudent management of monetary policy,

curbing inflation and checking unemployment in economy. Explain how RBI achieves

these diverse parameters by use of different tools available with it.

If the cost of Production given by C=50+Q+Q and the demand function is P=40-Q, then what is the profit maximizing level of production for the monopolist

Identify the decision made using by proton could reduce the cost of production .

A rise in the price of coffee milkshakes from R6 to R10 results in an increase in quantity supplied from 6 000 to 12 000 units. This means that the arc price elasticity of supply for coffee milkshakes is.

Identify the decision made using by Honda could reduce the cost of production .

Examine the markets and/or industries in your area.

Describe each one, and categorize it in terms of being pure competition,

pure monopoly, monopolistic competition, or oligopoly.

Which type of market is most common? How do you explain this?

Nestle Frozen Yogurt shops have enjoyed rapid growth in Karachi in recent years. From the analysis of Nestle various outlets, it was found that the demand curve follows this pattern.

         Q= 200 – 100P + 120i + 32T -250 Ac + 400 AN

Where

Q= Number of cups served per week

 P= Average price paid for each cup

 i= Per capita income in the given market (thousands)

 T= Average outdoor temperature

 Ac= Competition’s monthly advertising expenditures (thousands)

AN = Nestle own monthly advertising expenditure (thousands)