vu bt301 Mid Term Subjective Solved Past Paper No.3
vu bt301 Introduction to Biotechnology Solved Past Papers
This subjective solved past paper is related to book/course code vu bt301 Introduction to Biotechnology which belongs to vu organization. We have 3 past papers available related to the book/course Introduction to Biotechnology. This past paper has a total of 7 subjective questions belongs to topic Mid Term to get prepared. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to get prepared for exams by learning subjective questions online on NVAEducatio.
NVAEducation also facilitates users to download these solved past papers with an affordable prices. However, users are not enforced to pay for money, rather they can use credits to buy such stuff on NVAEducation. Users can earn credits for doing some little tasks and then you will be able to use that credits to buy solved past papers on NVAEducation.
- Lender of last resort.
- If banks go illiquid or during financial stress central bank provide discount loans to banks.
- Manage interbank payment system
- Monitors the working of banks and stabilizing financial system
Yield To Maturity
The most useful measure of the return on holding a bond is called the yield to maturity (YTM).
This is the yield bondholders receive if they hold the bond to its maturity when the final principal payment is made
It can be calculated from the present value formula.
The value of i that solves this equation is the yield to maturity
If the price of the bond is $100, then the yield to maturity equals the coupon rate. Since the price rises as the yield falls, when the price is above $100, the yield to maturity must be below the coupon rate.
Current yield
Current yield is a commonly used, easy-to-compute measure of the proceeds the bondholder receives for making a loan.
It is the yearly coupon payment divided by the price.
The current yield measures that part of the return from buying the bond that arises solely from the coupon payments
Short-run equilibrium is determined by the intersection of the aggregate demand curve with the short-run aggregate supply curve.
At point output is greater the potential output SARS start to move shift up and output start falling down.
Inflation will rise. if no action will be taken by policy maker at this stage then Economy will move to point 3, where Current inflation will be greater then Target inflation aggregate demand curve shifts to the right and inflation will rise if policymakers committed to their original inflation target then they will do something to get the economy back to the point where it started government purchases will raise the real interest rate increasing the real interest rate at every level of inflation will be achieved by compensating the shifting of monetary reaction curve to the left.
When the monetary policy reaction curve shifts, the aggregate demand curve also shifts with it.
The aggregate demand curve will shift to the left, and economy will be back to long-run equilibrium.
Term structure facts
- long term yields tend to be higher than short term bond.
- interest rates of different maturities tend to move to gather
- yields on short term bond are more volatile than long term bonds yeilds
