2. Every country has reasons for promulgating its economic policies within the nation. Identify any three of the reasons for Ghana’s economic policies formulation. Explain with examples how these policies effect one another. 3. State the object of Ghana’s Central Bank according to the Banking Act 2002 Section 3. From section 4, indicate 4 functions of the bank of Ghana. 4. Write short notes on the following: i. Fiat Money ii. Legal Tender iii. Currency Debasement 5. What are the Elements of Monetary Policy? Outline the Monetary Policy Framework and thre direct and indirect control measures employed in Ghana. 6. Analyze how any three of the indirect control measures are employed in monetary policy. 7. What is Inflation targeting? Outline 5 pre-requisites for inflation targeting. 8a. Write short notes on the following: i. foreign exchange ii foreign exchange transactions iii. Cross rates iv forward rates v. spot rate vi, foreign exchange rates vii. foreign exchange quotations 8b. State the functions of the Foreign Exchange Market. Identify the participants of the foreign exchange market and state their reason for being in the market 9. Distinguish between electronic currency and virtual currency. What are the main features of cryptocurrencies? Outline (four) 4 merits and (four) 4 demerits of cryptocurrencies. Do you think that Digital currency will thrive? 10. The financial market is a tool for National growth and development. Discuss thoroughly. 11. Give five reasons why studying financial markets and institutions is so important. 12. Outline the functions of financial intermediaries and State any four 4 institutions in the financial market. 13. Identify the roles of depository institutions in the financial markets.
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Rashmi S.
QUESTION 2 Assume that the central bank has successfully maintained price stability for the past decade, with inflation rates averaging around 2% annually. Despite fluctuations in global oil prices and occasional supply shocks, the country has managed to keep its overall price level relatively constant. Based on this scenario, which of the following statements is most likely to be true regarding the impact of price stability on the economy of this country? A. Businesses in this country frequently adjust their prices in response to changes in demand and supply. B. Consumers in this country experience unpredictable and significant fluctuations in the prices of essential goods and services. C. This country faces persistent periods of high inflation and deflation. D. The environment in this country fosters investor confidence, encourages long-term planning, and supports sustainable economic growth. QUESTION 3 If South Africa is currently trading at R18/$, a trade balance deficit of R12 billion could lead to: A. A change in the value of the currency to R16/$ B. A change in the value of the currency to R20/$ C. A change in the rate of unemployment from 25% to 22% D. An increase in foreign direct investment
In the mainstream view, monetary policy is not very effective during a severe recession. Why? A. Monetary policy only impacts the interest rate, and consumption must increase in order to get out of a recession. B. The liquidity trap prevents monetary policy from causing additional investment spending. C. Monetary policy is separated from the political sphere, and the officials in charge do not have the best interest of the people in mind. D. Crowding out causes government spending to have no real impact on the economy. 2. In real business cycle theory, which of the following is the driving force of macroeconomic instability? A. technology changes and innovation B. changes in expenditures, which impact AD C. bad monetary policy D. uncertainty about risky investment returns 3. An April 2023 op-ed in the New York Times suggested that the United States is likely headed for a recession. The author noted that lending has decreased and that "there are signs that the observable dip in loans and leases is at least partly due to weak demand." The author also states, "When you really have to start worrying is when people don't want to borrow because they see bad times ahead. In that situation, monetary policy becomes less effective; lowering the interest rate to induce borrowing is as useless as pushing on a string, as economists like to say." According to what we learned in class, based on these quotes, the author's viewpoint is closest to: A. The mainstream viewpoint B. The monetarist viewpoint C. The real business cycle theory viewpoint D. The self-correction viewpoint
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