Deliverable Length: 3–5 paragraphs Points Possible: 50 Due Date: 9/2/2012 11:59:59 PM CT The Discussion Board (DB) is part of the core of online learning. Classroom discussion in an online environment...

1 answer below »

Deliverable Length:3–5 paragraphs
Points Possible:50
Due Date:9/2/2012 11:59:59 PM CT

The Discussion Board (DB) is part of the core of online learning. Classroom discussion in an online environment requires the active participation of students and the instructor to create robust interaction and dialogue. Every student is expected to create an original response to the open-ended DB question as well as engage in dialogue by responding to posts created by others throughout the week. At the end of each unit, DB participation will be assessed based on both level of engagement and the quality of the contribution to the discussion.


At a minimum, each student will be expected to post an original and thoughtful response to the DB question and contribute to the weekly dialogue by responding to at least two other posts from students. The first contribution must be posted before midnight (Central Time) on Wednesday of each week. Two additional responses are required after Wednesday of each week. Students are highly encouraged to engage on the Discussion Board early and often, as that is the primary way the university tracks class attendance and participation.


The purpose of the Discussion Board is to allow students to learn through sharing ideas and experiences as they relate to course content and the DB question. Because it is not possible to engage in two-way dialogue after a conversation has ended, no posts to the DB will be accepted after the end of each week.


You have been tasked with briefing the firm's finance team on an aspect of international finance and then leading a discussion with the team. This briefing is particularly important because of the global financial crisis that began in 2007.


The briefing is needed to provide more foundation for the finance team because the team is not well versed in the international aspects of finance.


Provide a briefing that addresses the following:



  • Describewhen and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.

  • Whatdid the central banks do to stabilize the financial systems in 2007–2009?

  • In an effort to stabilize the financial system, how much money, in U.S. dollar equivalent and as a percentage of the country's GDP, did the European Central Bank, Bank of England, Bank of China, and Federal Reserve put into the economy in 2008 and 2009?

  • How well did each country's efforts work at stabilizing the economy?

  • What appears to be the major constraint that the central banks used to determine the limits of the monetary injections into the economy? Did the United States use the same or different criteria?

  • To what extent to do you agree or disagree with the actions of the central banks during this time?

  • Use the references

Answered Same DayDec 20, 2021

Answer To: Deliverable Length: 3–5 paragraphs Points Possible: 50 Due Date: 9/2/2012 11:59:59 PM CT The...

David answered on Dec 20 2021
121 Votes
Describe when and why central banks buy either their own currency or the currency of
another nation in an effort to control exchange rates. What did the central banks
do to
stabilize the financial systems in 2007–2009? In an effort to stabilize the financial system,
how much money, in U.S. dollar equivalent and as a percentage of the country's GDP, did
the European Central Bank, Bank of England, Bank of China, and Federal Reserve put into
the economy in 2008 and 2009? How well did each country's efforts work at stabilizing the
economy? What appears to be the major constraint that the central banks used to
determine the limits of the monetary injections into the economy? Did the United States
use the same or different criteria? To what extent to do you agree or disagree with the
actions of the central banks during this time?
Answer:
The central banks buy or sell their own currency through their monetary policy in order to
control money supply in the economy. There are three main reasons why (or when) central
bank buys either their own currency or the currency of another nation in an effort to
control exchange rate:
1. To reduce inflation; inflation generally arises because there are too much money
circulating in the economy. Therefore central banks buy their own currency (by
selling foreign currency or assets) to reduce money supply in the economy and
thereby it achieves the goal of reduced inflation.
2. To reduce current account deficit: Some countries like India, United States have
huge current account deficit in their accounts. In order to remove these deficits,
their exports needs to be increased and imports...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here