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Svetradugi [14.3K]
2 years ago
9

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

Business
1 answer:
yawa3891 [41]2 years ago
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.

Learn more about loans here brainly.com/question/9302251

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3. Bob, a minor, contracted with Pioneer Temporary Staffing Agency, LLC, an employment agency, for the agency to find a job for
svp [43]

The agency's position is that Bob had already signed a contract, and that the contract included a placement fee due to the fact that Bob was able to find this job through the agency. On the other hand, the position that Bob would most likely argue is that he is a minor. As a minor, Bob is allowed to disaffirm his contract. Therefore, Bob is likely to win in this dispute.

3 0
3 years ago
How many days will it take for $1500 to earn $16 interest if it is deposited in a bank paying simple interest at the rate of 4%/
JulsSmile [24]

Answer:

97 days

Explanation:

In simple interest method, the interest is calculated by the following formula

I= P x R x T

I= interest

P = principal amount

R =interest rate

T= Time

In this case

I=$16

P=$1500$

R= 4% or 0.04%

T= time

$16= $1500 x 0.04 x Time

$16 =60 x Time

Time = 16/60

time = 0.2666 year.

time in days =  0.26666 x 365 days

=97.333 days

=97 days

8 0
3 years ago
What is market power?
Sedbober [7]
I would say the correct answer is B. t<span>he ability of a company to change prices and output like a monopolist. Market power is basically the power of a particular company to manipulate the price of the product and thus affect all other participants, as well as customers. Monopolists have the greatest market power; conversely, in an ideally balanced economy, nobody would have market power. All participants would have equal chances and nobody would dictate the terms to others.</span>
8 0
3 years ago
Tricia had $100,000 in mortgage debt forgiven through a short sale on her principal residence on her Federal income tax return.
lidiya [134]

Answer:

d) $100,000

Explanation:

In answer to this question, Tricia must include $100000 as the amount of the discharge of indebtedness from the disposition of her principal residence when when she is completing her Schedule CA for the year 2019.

We have option d, 100000 dollars as the answer because the ​amount of debt forgiven is known to be taxable.

8 0
3 years ago
What are your options if the career you are interested in has a poor outlook? What are your options if the career you are intere
nydimaria [60]

Answer:

Entrepreneur

Explanation:

Being self employed

8 0
2 years ago
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