Give an example of an event that might change banks’ cost of lending (cL) and explain why this changed cost results.
A hike in inflation will lead to an increase in the cost of lending of banks. This is because cost of lending is the interest rate charged to borrowers. Higehr the inflation, higher are the prices of goods and services and greater is the demand for money. Due to higher demand for money, its cost will increase leading to an increase in the cost of lending by the banks.
Give an example of an event that might change banks’ cost of lending (cL) and explain...
Give an example of an event that might shift the supply of deposits to the banking industry and explain why this shift results.
Explain in detail how monetary policy influences banks’ lending behavior
Explain What is Nostro Vostro Loro in Banks and give one good example of Non Tariff Trade Barrier
Give an example of a type of inventory for which each cost formula might be used LINK TO TEXT
Give an example of a type of inventory for which each cost formula might be used LINK TO TEXT
Discuss the following aspects in detail and give an example: Issuing banks vs Confirming banks and global business
5. Explain the difference between a Nash equilibrium and a dominant strategies equilibrium. Give an example to show how the prisoners' dilemma helps to explain behaviour. 6. Why might a firm set prices based on a markup above average cost rather than equalising marginal costs and marginal benefits? 7. Using a diagram, explain how an external cost of production (i.e. a negative production externality) can be internalised with a tax. |8. Explain the conditions of price discrimination. Give two examples...
Give an example in the real world where you might do a t-test. Explain what your sample and population averages might be.
(a) Why is the interbank lending market often called market for reserves? Explain, with the help of a supply/demand diagram, how the equilibrium interbank rate is determined. How are the Central bank's lending rate and the rate paid on banks reserves reflected in your diagram? (30 Marks) b) The Central bank wishes to lower market interest rates- will it buy or sell bonds in the open market to meet this target? Use the relevant market equilibrium framework in your answer....
Give a specific example of an everyday device for
which one might want to insert a rectifier circuit (like the one
pictured), rather than directly powering the device from a wall
socket. Explain why this would be a good thing to do.
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give an example of an ecosystem near your home and describe how it might be effected by climate change