Name :Nader Mohamed Mohamed

Id :19222267
Group 1R
Email:naderali571@gmail.com

1-Discuss and explain the main monetary actions taken by the Central bank of Egypt Governor during the
Covid 19 Crisis.

1. Egypt`s Central Bank cut interest rates to historic lows: it reduced the overnight deposit
rate by 300 basis points to 9.25% and the lending rate to 10.25%.

2. On 29 March, the Central Bank announced a series of new limits on cash withdrawals and
deposits to avoid overcrowding, in particular during payroll and pension disbursement. A
daily limit of 10,000 Egyptian pounds (around 630 USD) for individuals and 50,000 (around
3180 USD) for businesses is applied until further notice, while fees on electronic
transactions have been lifted for six months to encourage people to rely on electronic
payment methods and bank transfers instead of using cash.

3. Allocation of USD 1.3 billion by the Egyptian Central Bank to support the country`s stock
exchange through a stock purchase program. It has cut tax on dividends for companies
listed on its stock exchange by half to 5% and it lowered the stamp duty tax on stock
market transactions.

4. Fiscal policy: President Al-Sisi announced the allocation of 100 billion EGP (USD 6.4 billion
equivalent to 2% of GDP) to fund a comprehensive plan to combat the coronavirus. Half
of the budget is allocated to the tourism sector while the rest will support poor families
and the stock market through a stock purchase programme.

5. The Government has announced various tax measures covering both people and
companies (subject to the issuance of the law). Stamp duty: the cost of transactions in
the EGX will be reduced from 0.15% to 0.125% and from  0.15% to 0.05% for non-
residents and Egyptian residents, respectively. All spot transactions on EGX will be
exempt from stamp duty.

6. Postponing all credit entitlements for institutional and individual clients, which include
consumer loans, real estate loans for personal housing and loans for medium and small
companies, for a period of 6 months, with no additional returns and penalties applied for
late payment.

7. Availability of the necessary financing to finance the import of strategic goods and
support the most affected sectors and companies, as he instructed banks to immediately
provide the necessary credit limits to meet financing import operations for basic and
strategic commodities, in particular food commodities, to cover market needs, study and
follow up the sectors most affected by the spread of the virus, and develop plans to
support companies And the availability of the necessary credit limits to finance the
worker's capital, especially the payment of the salaries of workers in companies
8. To announce the initiative to replace and renew accommodation hotels, floating hotels
and tourist transport fleets and increase the amount allocated for the initiative to 50
billion pounds instead of 5 billion pounds at a reduced interest rate of 8% for a maximum
period of 15 years, and to grant credit facilities to be paid over a maximum period of two
years in addition to a grace period that does not exceed Over 6 months to pay salaries,
wages, outstanding obligations with suppliers and maintenance work for tourism
activities, and cautioned that faltering customers can benefit from the initiative if they
make settlements within the framework of the Central Bank's initiatives for irregular
customers.

9. The Central Bank launched an initiative for irregular customers from natural persons
(individuals), which applies to irregular individual customers until September 30, 2019,
whose total debts (excluding marginalized returns) with all banks are less than one million
pounds (without credit cards). All cases circulated and exchanged between the bank and
the customer with the courts upon agreement on the terms of payment, the abolition of
the prohibition of dealing with them, and the issuance of guarantees and mortgages
related to those debts when the customer pays 50% of the net debt balance without
marginal returns until March 31, 2021
10.
The industrial private sector and the agricultural sector made available an amount of 100
billion pounds through banks at a reduced annual rate of 8% to finance the industrial
private sector companies and companies operating in the agricultural field, agricultural
production and processing,

11. Real estate financing for middle-income people, as the Central Bank allocated 50 billion
pounds through banks at an 8% interest rate calculated on a diminishing basis for a
maximum period of 20 years, with specific conditions.

12. Banks were allowed to issue short quarterly financial statements, excluding the impact of
a 6-month loan delay on budgets, and not being taken as an indication of clients' default.
2-Explain using graphs the circular flow of income and expenditures.

 -Firms Deal with House hold Factor Of Production(land-capital) by Factor Market

 -House Hold pay his Consumption his needs From Good Market directly To Firms,
 -Pays His Taxes to Government
 The Rest will be In banks, Stock Market (Financial Market)
 -Firms Invesment out/in From (Goods Market) As Factor of Production
 -government gains Taxes From Firms &Household
 -Government expenditure purshusing From (Good Markets)
 -Rest Of world can Deal with (Good Markets) (Export or Import )
 -Government Even Landing and borrowing From (Rest Of the World)
 -(Financial Market) present Loans Firms &Government

3-Discuss the following statement: "All economic questions arise because we want more
than we can get

Our inability to satisfy all our wants is called scarcity.Because we face scarcity, we must
make choices.The choices we make depend on the incentives we face.
An incentive is a reward that encourages an action or a penalty that discourages an action
Recourses are not distributed in equally ,and price depend on rarity,
Since Recourses are not enough people start to trade and some countries are more
developed than others
Recourses are not distributed in equally ,and price depend on rarity,Since Recourses are not

enough people start to trade and some countries are more developed than others people have to

make

4-Explain using graphs the difference between the change in quantity demanded and change in demand.

.
The Total Quantity Affect by Price
When the price of the good changes and other things remain the same, the quantity demanded changes
and there is a movement along the demand curve

A change in demand refers to a shift in the entire demand curve, which is caused by a variety of factors
(preferences, income, prices of substitutes and complements, expectations, population, etc.).  In this case,
the entire demand curve moves left or right:

Six main factors that change demand are

The prices of related goods

Expected future prices
Income
Population
The quantity demanded of a good or service is the amount that consumers plan to buy during a particular
time period, and at a particular price

A change in quantity demanded refers to a movement along the demand curve, which is caused only by a
change in price.  In this case, the demand curve doesn’t move; rather, we move along the existing demand
curve