Are there any benefits to having both banking supervisors and economic researchers working together at a Reserve bank?
What will be an ideal response?
Economists working on banking research often get information from the supervision and regulation group, while the latter often asks for advice from economists in the research group on why banks are engaging in some activities. Collaboration helps in complicated areas, such as banks' ownership of derivative securities, whose properties may be difficult to understand. In addition, banks have developed new methods to manage risk in recent years, which banking economists can explain to the bank supervisors.
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Which of the following is a relationship role?
a. gatekeeper b. developer c. coordinator d. initiator
Floating-rate debt is advantageous to investors because the interest rate moves up if market rates rise. Since floating-rate debt shifts price risk to companies, it offers no advantages to corporate issuers.
Answer the following statement true (T) or false (F)
ABC Corp. extends credit terms of 45 days to its customers. Its credit collection would likely be considered poor if its average collection period was ________
A) 30 days B) 36 days C) 44 days D) 57 days
Lower expected interest rates in the future ________ the demand for long-term bonds and shift the demand curve to the ________
A) increase; left. B) increase; right. C) decrease; left. D) decrease; right.