borrowings from the Federal Reserve System. Also known as discount loans. adverse selection The problem created by asymmetric information before a transaction occurs: the people who are the most undesirable from the other party’s point of view are the ones who are most likely to want to engage in the financial transaction. agency theory The analysis of how asymmetric information problems affect economic behavior. American depository receipts (ADR) A receipt for foreign stocks held by a trustee
Premium Monetary policy Central bank Bond
Jamaica Act‚ the functions of the Central Bank are: 1. To issue and redeem notes and coins. 2. To act as banker to the Government. 3. To act as a bank to the commercial banks 4. To keep and administer the reserves of Jamaica 5. To formulate foreign exchange rate policies 6. To act as advisor on the formulation and implementation of economic policies 7. To influence the volume and conditions of supply of credit so as to promote‚ the fullest expansion in production‚ trade
Premium Central bank Monetary policy Inflation
Foreign Exchange Intervention | Links | References | | | What is Foreign Exchange Intervention? Definition and the Legal Status of Intervention Foreign exchange intervention is defined generally as foreign exchange transactions conducted by the monetary authorities with the aim of influencing exchange rates. It is the process by which the monetary authorities attempt to influence market conditions and/or the value of the home currency on the foreign exchange market. Intervention usually aims
Premium Central bank Monetary policy Foreign exchange market
products become more expensive leading to decrease in exports and balance of payments surplus. This process helps achieve balance of payments disequlibrium. Controlling the exchange rate volatility by establishing fixed exchange rates per gold. Maintaining balance-of-payments equlibrium and price stable exchange rates help improve the growth of world trade. 2) THE INTERWAR PERIOD (1918-1939): Characteristics: It flourished as war related restrictions stopped gold flows and
Premium Bretton Woods system Monetary policy Foreign exchange market
this matter‚ appointed by the Reserve Bank of India‚ on Friday recommended that India move to fuller capital account convertibility over the next five years and has laid down the roadmap for the move. So what is capital account convertibility? To put is simply‚ capital account convertibility (CAC) -- or a floating exchange rate -- means the freedom to convert local financial assets into foreign financial assets and vice versa at market determined rates of exchange. This means that capital account
Premium Foreign exchange market Currency Bretton Woods system
a severe foreign exchange crisis her outstanding level of external debt was $ 83. 8 billion. The level of debt was about 40 per cent of Gross Domestic Product and the debt service payment was about 30 per cent of exports of goods and services. Several destabilizing forces acting on the Indian foreign exchange markets were a downgrade of India’s sovereign credit ratings to non-investment grade‚ reversal of capital flows‚ exacerbated the foreign exchange crisis and withdrawal of the foreign currency
Premium Foreign exchange market Currency Debt
Co-ordination among Regulatory bodies‚ Supervision of economy including large conglomerates‚ Coordination international interface with financial sector bodies for e.g. Financial Action Task Force‚ Financial Stability Board etc. Securities and Exchange board of India: Established in 1988 as a regulator of securities market in India. It was given statutory powers through SEBI Act‚ 1992 on 12 April 1992. Controller of Capital issues was the former regulatory authority under Capital Issues (Control)
Premium Investment Insurance Stock exchange
EVOLUTION OF EXCHANGE RATE REGIME: IMPACT ON MACRO ECONOMY OF BANGLADESH by Liza Fahmida A project submitted in partial fulfillment of the requirements for the degree of Professional Master in Banking and Finance Examination Committee: Dr. Sundar Venkatesh (Chairperson) Dr. Juthathip Jongwanich Dr. Yuosre Badir Nationality: Bangladeshi Previous Degree: Master in Finance and Banking University of Dhaka Bangladesh Scholarship Donor: Bangladesh Bank Asian Institute of Technology School
Premium Foreign exchange market Bretton Woods system Central bank
financial crisis that was attributed to A) subprime mortgage repricing. B) quantitative easing by the Fed. C) foreign exchange imbalances. D) banking failures. Answer: A 5) Which of the following is NOT a protectionist tendency? A) tariffs B) comparative advantage C) non-tariff barriers D) quotas Answer: B 6) It is the right given to firms to produce specific products in exchange for a ________ fee. A) Joint Venture B) Securitization C) Licensing D) Royalty Answer: C 7) Which
Premium Foreign exchange market International economics Exchange rate
special interest in the context of developing countries. During periods of macroeconomic and political uncertainty‚ many developing countries experienced a partial replacement of their domestic currencies by a foreign currency either as a store of value‚ unit of account or as a medium of exchange. However‚ after a flow in economic literature on currency substitution‚ where the effectiveness of monetary policy was the issue‚ the efforts to stabilize inflation relegated dollarization to a secondary role
Premium Monetary policy Foreign exchange market Currency