Questions tagged [central-bank]
The central-bank tag has no usage guidance.
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In layman's terms, what happens to the average Joe, in a "bank bail-in"?
I've come across some scare stories that a "bail-in", being the opposite of a bail-out, is where a bank uses deposits to restructure their capital, and that the average Joe with savings ...
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How does QE reduce long-term interest rates? [closed]
It is said to be that, in a QE programme, the Fed reduces long-term interest rates by purchasing long-term securities. How does this work? Why does buying longer maturity securities from banks reduce ...
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How are sovereign bond interest rates determined? [closed]
They are a lot of questions about the price of a bond or its yield.
How would bonds fare if interest rates rose?
Why would I not buy a bond for less than face value?
Why invest in long term ...
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Trying to understand the U.S. yield curve and global inflation
With the COVID crisis the FED has lower interest rates a lot:
Now, inspecting the US yield curve:
It seems to be that this is a normal curve that doesn't flatten too much at the end. Is this correct?...
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Do central banks really dispose of old currency the way it's shown in movies?
I have watched many movies where people who want to rob a load of money, Just wait until the federal reserve pulls money back to them and right in between them removing the serial numbers from their ...
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Why are EU banks hesitant to open an account and take our money?
In Europe, I work for a small/honest internet business. We make a fair profit every month, so we wanted to deposit our profits in different banks, until we decide what to do with the money.
To our ...
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How can I know the current interest rates for corporate bonds?
How can I check the interest rate of a bond issued by a particular company (e.g. GE)? I have found this for instance: GE corporate bonds.
According to that, the coupon is ~8%. That sounds impossible ...
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How do you assess the value of a central bank?
I have recently stumbled upon a very interesting investment idea. It appears that it is possible to acquire shares in the National Bank of Belgium, which is the central bank of Belgium. Its shares are ...
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How much value has the US Dollar lost or gained in 2020, compared to the US Dollar in 2019?
There's a lot of news about the Federal Reserve printing money. I have a hard time imagining the relative change in value of the USD. (or EURO for that matter)
I tried to calculate but it's hard:
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Are the corporate bonds' interest rates set by central banks?
In countries which use a central bank system:
When people speak about the 'interest rates', they mean interest to which the central bank (whatever it is) lends money to other banks, which in turn ...
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How can you explain how international wire transfers work succinctly?
I'm interested in a conceptual explanation at the accounting level, i.e. who owes who what during the process.
I couldn't find anything on the web or on YouTube. It's very cumbersome to describe in ...
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How much percent of the total Euro Zone Euros was artificially added through systems like QE this century? [closed]
Until 2018, the ECB 'printed' € 2,500,000,000,000 (2.5 trillion) through quantitative easing, and then it proceeded to add € 20,000,000,000 (20 billion) per month "for as long as necessary", which is ...
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Can an individual borrow directly from the Bank of England (or any central bank)?
How it normally works is that individuals can apply for loans from high-street banks, who charge an appropriate level of interest.
The banks get the money from savers' deposits - and also they may ...
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Why do banks park their money at the european central bank instead of buying stocks?
Sorry for asking a very very similar question to [1], but I'm still confused why banks would not invest their money in stocks instead of parking it at the central bank and pay the negative interest of ...
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Interest rates and what does "discount" mean?
I was reading an article that says "Interest rates play an essential role in financial markets. Foremost, they represent the rate at which investors discount risk-free as well as risky future cash ...
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