Financial regulation：練習問題

• a.

  To limit the total amount of money a bank can lend to the government to finance the national debt.

• b.

  To ensure that banks have a sufficient buffer to absorb potential losses, thereby reducing the risk of insolvency.

• c.

  To increase the velocity of circulation in the economy by forcing banks to move capital into liquid savings accounts.

• d.

  To ensure that the interest rates charged on mortgage products are kept at a level affordable for first-time buyers.

• a.

  It prevents the central bank from using open market operations to influence the base interest rate due to asymmetric information.

• b.

  The expectation of a central bank rescue may encourage commercial banks to take excessive risks, knowing they are 'too big to fail'.

• c.

  It leads to a reduction in the capital adequacy ratio because banks are unable to accurately calculate their risk-weighted assets.

• d.

  It forces the central bank to decrease the money supply, which leads to a deflationary spiral and increased real debt burdens.

• a.

  Acting as the primary source of credit for small and medium-sized enterprises when commercial banks increase interest rates.

• b.

  Providing liquidity to solvent financial institutions facing temporary cash flow shortages to prevent systemic collapse.

• c.

  Offering low-interest loans to the general public during a period of high unemployment and low consumer confidence.

• d.

  Bailing out insolvent commercial banks using taxpayer funds to ensure shareholders do not lose their investments.

• a.

  The FPC manages the liquidity of the central bank during financial crises, whereas the PRA focuses on international trade settlements and exchange rate stability.

• b.

  The FPC focuses on the day-to-day conduct and consumer protection within financial markets, while the PRA is solely responsible for setting the base interest rate.

• c.

  The FPC is responsible for macroprudential regulation to mitigate systemic risks to the whole economy, whereas the PRA focuses on the microprudential stability of individual firms.

• d.

  The PRA uses stress tests to ensure the banking system as a whole can withstand shocks, while the FPC is the primary body responsible for ensuring individual firms do not fail.

• a.

  It forces the government to run a budget surplus, which reduces the total level of aggregate demand in the economy.

• b.

  It may increase the costs of compliance for banks, leading to a reduction in the supply of credit available for investment.

• c.

  It automatically leads to an increase in the velocity of circulation, which causes hyperinflation and reduces real GDP.

• d.

  It prevents the central bank from acting as a lender of last resort, which increases the likelihood of a currency devaluation.

まず自分で答えを書いてから、解説と照らし合わせましょう。

まず自分で答えを書いてから、解説と照らし合わせましょう。

まず自分で答えを書いてから、解説と照らし合わせましょう。