Explain the effects of an increase in the interest elasticity of loans and deposits on the interest
Question:
Explain the effects of an increase in the interest elasticity of loans and deposits on the interest rate spread between loans and deposits.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Interest elasticity is a measure of how responsive the demand or supply of a financial product like loans or deposits is to changes in its interest ra...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
The Economics Of Banking
ISBN: 9789811275050,9789811275074
4th Edition
Authors: Kent Matthew , John Thompson, Tiantian Zhang
Question Posted:
Students also viewed these Business questions
-
1. On a graph of the labor market, show the effects of an increase in the payroll tax. 2. On a graph of the labor market, show the effects of a negative shock to technology on wages and employment....
-
A 2015 article published by the American Journal of Preventive Medicine studied the effects of an increase in alcohol prices on the incidence of new cases of sexually transmitted diseases. In...
-
In the simplified model with proportional taxation there can be two equilibria, one with a high tax rate and one with a low tax rate. Now, suppose that government spending increases. Determine the...
-
Why would an organization use outplacement strategies before downsizing? Outplacing employees helps former employees develop new skill sets. Outplacement strategies are a means of eliminating problem...
-
Consider the glider of Example 7.7 (Section 7.2) and Fig. 7.16. As in the example, the glider is released from rest with the spring stretched 0.100 m. What is the displacement x of the glider from...
-
The following information is available for Fess Company: Credit sales during 20X1 ...................................................................................... $150,000 Allowance for credit...
-
Shiloh supplies equipment to the automotive and commercial vehicle markets and other industrial customers. It specializes in materials and designs that reduce vehicle weight and increase fuel...
-
Presented below is the trial balance of Vivaldi Corporation at December 31, 2012. InstructionsPrepare a balance sheet at December 31, 2012, for Vivaldi Corporation. Ignore incometaxes. Credits Debits...
-
How does Visual Basic 2015 facilitate connecting to and using a database? What do you find easy or challenging about making a database connection?
-
Ellery Products manufactures various components for the fashion industry. Ellery buys fabric from two vendors: Ewers Textiles and Bramford Materials. Ellery chooses the vendor based on price. Once...
-
What are the potential effects on UK banks if (or when) the UK joins the European Monetary Union?
-
What are the implications of an increase in the reservedeposit ratio on the interest rate spread between loans and deposits?
-
The cycloid generated by the unit circle has parametrization r(t) = (t sint, 1 - cost) (a) Find the value of t in [0,27] where the speed is at a maximum. (b) Show that one arch of the cycloid has...
-
Please read the paper by Ernesto Dal Bo & Guo Xu: "How did a $9 Billion Health Tech Startup End up DOA?" 1. The outcome of the Theranos saga is quite exceptional. How exceptional do you think the...
-
Describe the people dimension of information systems and give an example. Is this dimension as vital as the technology dimension when considering a technology- based solution to a business problem?
-
Type of adjustment Classify the following items as (1) accrued revenue, (2) accrued expense, (3) unearned revenue, or (4) prepaid expense: Line Item Description Classification a. Cash paid for future...
-
Write the email to Rachel (you can make up an email address) that will achieve the negative-news goals of clarity, acceptance, and positive image. Remember that this case deliberately contains...
-
Table 1. Projected cash flows for TopMaverick Ltd (in m) 2016 2017 2018 2019 2020 EBIT(1-t) 80.50 86.14 92.16 98.62 Incremental Working 45.00 48.15 46.71 44.37 Capital Net Capital Expenditure 13.50...
-
To optimize your resume for todays technologies, how many versions of your resume should you expect to make? What are they?
-
Find the center of mass of a thin triangular plate bounded by the y-axis and the lines y = x and y = 2 - x if (x, y) = 6x + 3y + 3.
-
Predict the effect of an increase in sales taxes on both the aggregate supply and demand curves, showing the effects on output and inflation. Use a graph of aggregate supply and demand to demonstrate.
-
Classify each of the following as a supply or demand shock. Use a graph to show the effects on inflation and output in the short run and the long run. a. Financial frictions increase. b. Households...
-
During the first half of 2010, Bank of Canada officials discussed the possibility of increasing interest rates as away of fighting potential increases in expected inflation. If the public came to...
-
Simon is an Australian resident taxpayer who has undertaken the following transactions during the tax year ending 30 June 2019. Item number Transaction Particulars 1 Sold car Purchased on 1 March...
-
Please explain the below problem and show the calcuation correct answers are at the end of the problem. The Larkspur Furniture Company's chair manufacturing requires multiple shades of wood stain....
-
Sparky Company occasionally uses its accounts receivable to obtain immediate cash. At the end of their second quarter, June 30, 2018, the company reported the following for their accounts receivable:...
Study smarter with the SolutionInn App