Read this article from the link and answer the questions at the end.
1. Why would banks tend to lend more in booms and less in downturns?
2. What do these proposals mean for the RBA’s policy of targeting inflation?
My teacher wants me to follow his hints. These are:
1.Identify the determinants of the demand and supply for bank lending.
Describe the role of the reserve-to-deposit ratio in the factional banking system.
Explain how the money multiplier fits in the fact that lending increases during the boom but decreases during the downturn.
2.What was the key policy proposal from the Basel Accord?
Identify the effects of Basel Accord on the size of the money multiplier.
Use the quantity theory of money to explain how the Basel Accord can help the RBA to stabilise inflation.
Hope you will answer these questions as soon as possible.
Thank you very much!!!
I have 2 hours left. Please help me!
Thank you so much!!
Thank you very much. I'm waiting for your answer.
Hello dear XXXThank you for your patience!>>>Click here to download<<<<Please RATE MY ANSWER so that i get credit for all my efforts and time.Regards,Jabi
Hello dear XXX, You are most welcome, You can request my help with your future assignments as well. Regards, Jabi
Hey Jabi. when I check your answer, im confused. My teacher gave his hints in Question 2 and he mention about Basel Accord. Your answer didn't mention it. Can you check it again, plz?
Hello dear XXX, Thank you for your reply and time, There is no discussion of "Basel Accord" in the article you provided and i answered your questions in the context of the article. Regards, Jabi
the writer said: "The idea behind the new Basel III recommendations is that money hoarded during the boom can then be released during a recession."
is it talk about Basel Accord?
I had read the analysis in wikipedia about Basel III and i still stuck.
Do you know about it? Can you help me? Or can you follow my teacher hints. Please!!!
Hello dear XXX, What was the key policy proposal from the Basel Accord? The main purpose of Basel Accord is to make sure that banks have enough money to meet the obligations or absorb loses that are unexpected in nature. The key Policy Proposal from Basel Accord was to accumulate the supply of money in boom and then keep it for the recession. Let me know if you need more help. Regards, Jabi
Thank you for this help.
Just one more question.
Can you explain some information about RBA and the reserve to deposit rate depend on this article ?
Hello dear XXX, Thank you for the nice tip! I hope everything is clear now to you :) Regards, Jabi
Don't worry. You are helping me very much.
But can you delete or change your reply because i don't want anyone know my name.