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1 year ago

What is a step a bank can take to protect itself from loan defaults which can lead to recessions?

1 answer:

5 0

Diversifying its loans is a step a bank can take to protect itself from loan defaults which can lead to recessions.

By opting to diversify their loan portfolios or to maintain a larger percentage of their assets in bonds and reserves, banks can safeguard themselves against these risks. The full sum of the new deposits can be lent out by the bank. - Only the amount of the bank's excess reserves may be lent. - Only 25% of the deposits deposited by clients are lent by banks. In banking, asset/liability management is also employed. A bank is required to charge interest on loans as well as pay interest on deposits. Bankers monitor the net interest margin, or the difference between interest received on loans and interest paid on deposits, to control these two factors.

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Comment down below if you go to Carroll High School in Monroe La

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Answer:

yesss but i graduated in 2017

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2 years ago

Which of the following jobs in aviation would

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Explanation:

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1 year ago

A decision in which a manager needs to determine whether a product line (or segment) should continue or be eliminated is what ki

Marianna [84]

Answer:

Keep-or-drop decision

Explanation:

Keep-or-drop decision is taken when a manager is in a dilemma whether to continue a product line or segment or shut it down. The manager needs to analyse income statement related to the product line to understand the major issue with product line. If costs are more than revenue, then the product line needs to be shut down. If the reasons for incurring losses can be addressed and that revenue from the product line is more, then it is not dropped.

Therefore, manager takes a keep-or-drop decision.

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2 years ago

A _____________ team is made up of employees from the same hierarchical level but different work areas. They are typically broug

melisa1 [442]

A cross-functional team is made up of employees from the same hierarchical level but different work areas. They are typically brought together to accomplish a task.

Cross-functional teams are collections comprising personnel from various departments within the organization, such as marketing, production, sales, and customer engagement. These could be working groups in which each participant is a part both of their functioning team and the cross-functional team, or they could be the main organizational structure.

Different kinds of businesses have various approaches towards how cross-functional teams function. Simply by because of their size, entrepreneurs and small firms usually employ cross-functional teams. Given that they aren't large enough to establish different teams, the majority of projects or choices are made via collaboration between individuals with various areas of expertise.

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3 0

5 months ago

You are thinking about a project to expand your business. In order to start the project, you have to invest $200,000 in new equi

svetlana [45]

Answer:

The initial outlay of this project is $270,000

Explanation:

According to the given data we have the following:

cost of new machine= $200,000

shipping cost=$5,000

installation cost=$15,000

working capital=$50,000

Therefore, in order to calculate the initial outlay of this project we would have to make the following calculation:

initial outlay of this project=cost of new machine+shipping cost+installation cost+working capital

initial outlay of this project= $200,000+$5,000+$15,000+$50,000

initial outlay of this project= $270,000

7 0

3 years ago