Economics- Essay type questions, answer each question on a separate page.;1) Why are banks susceptible to collapse during bad economic conditions and why does this;lead to financial crisis and bank panics? Illustrate with a balance sheet for a bank both;pre and post-recession.;2) What is the difference between the Current Account and the Capital and Financial;Account of the Balance of Payments Statement? Can surpluses in one offset deficits in;the other? Explain using the U.S. situation as an example. Explain both the trade;balance and the difference between FDI and portfolio investment in the process of your;explanation.;3) What is the Value Added approach to GDP accounting? Illustrate with an example.;(class example is fine but not required) What is a VAT, and how is it related to this;concept? Explain why it is similar in effect to an income tax?;4) What is an exchange rate, and how is the rate determined in a flexible exchange rate;system? Illustrate your points by determining the U.S. dollar exchange rate for the;Swedish Krona. Illustrate your points with a supply and demand curve properly labeled.;Also show the factors that would shift the exchange rate over time.
Paper#15205 | Written in 18-Jul-2015Price : $22