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Qaagi - Book of Why

Causes

Effects

new moneyis createdto buy government bonds by the central banks

to hold downlong - term interest rates and bolster economic activity(passive) are designedCentral bank purchases of bonds

to hold down long - term interest rates and bolster economic activity(passive) are designedCentral bank purchases of bonds

bid for corporate bonds Changes to the liquidity coverage ratio that forms part of the Basel III capital accord could helpcreatea structural bid for corporate bonds from banks

to boost markets by pushing investors into riskier asset classes , like stocks or real estate(passive) were designedCentral bank purchases of bonds

an asset purchase shockresultsin the central bank purchasing government bond

Bank Indonesia and the Ministry of Financeseta limit on the central bank 's bond purchases

Liquidity infusions of the central bank ... rising bond yieldshad promptedcalls for more bond purchases from the central bank

another downturnpromptsthe central bank to consider reviving bond purchases

’s latest meetingsparkedconcern about the central bank ’s bond - buying program

artificial demand for corporate debt Schiff Goldcreatedartificial demand for corporate debt Schiff Gold

to pump liquidity into the economy when interest rates are stuck at zerodesignedto pump liquidity into the economy when interest rates are stuck at zero

an immediate response in credit markets ... pushing borrowing costs lower for both risky and reliable debtorspromptedan immediate response in credit markets ... pushing borrowing costs lower for both risky and reliable debtors

which of the following when a liquidity trap situation exists the interest rate will not change the interest rate will decrease the money supply , M , will not change The interest rate will not changewill causewhich of the following when a liquidity trap situation exists the interest rate will not change the interest rate will decrease the money supply , M , will not change The interest rate will not change

to higher money supplyleadto higher money supply

any upward pressure on the currencywill preventany upward pressure on the currency

The resignation Friday of Juergen Stark , an executive board member of the European Central Bank(passive) was ... prompted byThe resignation Friday of Juergen Stark , an executive board member of the European Central Bank

to hyperinflationwould leadto hyperinflation

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