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Question:
Banks contribute to the economic development of a country. Banks have always been financing projects that help individuals and enterprises fulfill their plans. However, banks have not always been successful and profitable.
(a) Do you think that banks really help in the economic development of an economy?
(b) Taking examples from two real cases of bank failures analyse why these failures happened and how they could have been avoided, if ever possible.
Q. What are the main lessons economists learned from the developing country crisis? Answer: 1. select the right exchange rate regime. 2. The central significance of
curve
illustrate the circular flow of income of an open economy and explain the effects of various injections and withdrawal in the circular flow?
Us and European Foriegn Exchange Flow chart Answer: The figure explicate how the money markets of two countries are linked through the foreign exchange market. The financial
Q. What are the predictions of the PPP theory with regard to the real exchange rates? Answer: The real exchange rate among two countries is a broad summary measure of
Q. Neoclassical and Classical trade theory makes the case that free trade can bring a country to an optimum and economically efficient use of its resources; and therefore is an op
Assess the supply and demand of international reserves. Discuss the major determinants of the demand for international reserves: 1.) the monetary value of international transaction
Q. In 1986, the price of oil on world markets dropped sharply. Since the United States is an oil-importing country, this was widely regarded as good for the U.S. economy. Yet in
Q. Using 4 different figures, plot the time paths showing the effects of a permanent increase in the United States money supply on: A. U.S. money supply. B.
Identify and explain the three basic economic question that the group of survivors will have to answer everyday
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