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Lynna [10]
2 years ago
8

What happens to the output when capital adequacy line is equal to the savings per worker function

Social Studies
1 answer:
lutik1710 [3]2 years ago
8 0

When capital adequacy line is equal to the savings per worker function then "normal expected returns to investor".

<h3>What is capital adequacy/requirement ratio?</h3>

The capital adequacy ratio (CAR) gauges a bank's level of capital retention in relation to its level of risk. The CAR of banks must be monitored by national regulators in order to ascertain how well it can withstand an acceptable amount of loss.

The components of capital adequacy are-

  • The Capital Adequacy Ratio (CAR) aims to ensure that banks have an adequate amount of capital to safeguard depositors' funds.
  • (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets is the calculation for CAR.
  • The BIS's capital standards have tightened up in recent years.
  • By reducing the likelihood of bank insolvency, capital adequacy ratios promote the effectiveness and stability of a country's financial system.
  • A bank with a high capital adequacy ratio is typically thought to be secure and likely to fulfill its financial obligations.

The principle of capital adequacy are-

  • High-quality and loss-absorbing capital are both necessary.
  • The Basel III criteria for common stock, along with supplementary tier 1 and tier 2 capital, are applied to establish the quality of capital, with retained earnings being the most important factor.

To know more about the capital requirement, here

brainly.com/question/13676980

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We think that, by using its public school system to encourage recitation of the Regents' prayer, the State of New York has adopt
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The main reason for the staggering casualties that Russia suffered in World War I.
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Which political group’s concern that states’ and individuals’ rights were not properly addressed by the constitution led to the
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Sporre argues that the values of which era encouraged the division of the fine and applied arts?
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According to Sporre, it was during the 18th century that a differentiation between fine art and applied art began to take shape.

This distinction can be traced back to philosophers such as Jean-Jacques Rousseau who argued that there is an inherent difference in talent between artists who paint landscapes versus those who create portraits or figure sketches.

<h3>When was the separation of the fine and applied arts encouraged?</h3>

In the 18th century, Sporre argues that the values of an era encouraged the division of fine and applied arts.

He states that during this time period, people were more interested in practical applications than artistically-oriented endeavors.

This was due to advances made in science and technology, which allowed for things like machines, weapons, transportation systems etc to be developed and manufactured.

As a result of this emphasis on practicality, art became less important as it did not immediately have utilitarian value.

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