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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

#SPJ4.

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Assume that an employee of a FINRA member firm opens a securities account at another FINRA member firm. If requested, the employ
murzikaleks [220]

Answer:

C) confirmations and account statements

Explanation:

If an employee of a FINRA member firm wants to work for another FINRA firm, he/she must notify his/her employing member firm, and his/her new employer must send duplicate confirmations and account statements only if requested by the member employing firm. The member employing firm does not have to grant any type of approval or permission.

The Financial Industry Regulatory Authority (FINRA) regulates member brokerage firms and exchange markets. FINRA is regulated and overseen by the SEC. They issue licences to individuals and admits companies into the financial trading industry.

3 0
3 years ago
An owner who is active in managing the company, and who has unlimited liability for claims against the firm is a(n) ___________
Law Incorporation [45]

An owner who is active in managing the company, and who has unlimited liability for claims against the firm is a "general" partner.

A general partnership, the essential type of association under common law is a course of action by which at least two people consent to partake in all advantages, benefits and monetary and legitimate liabilities of a business. Such partners have boundless liability, which implies their own assets are at risk to the partnership's commitments.  

6 0
3 years ago
It is illegal to modify your __________ system or install a bypass device to increase the noise level of your vehicle.
balandron [24]
Exhaust. <span> Your exhaust system should not have leaks that increase the noise level. Leaks in the exhaust system are dangerous because they expose occupants to carbon monoxide and other toxic gases.</span>
6 0
3 years ago
In the absence of environmental or safety laws in the locality where it operates, what responsibility does a U.S. corporation ha
Elden [556K]

Answer:

1. Moral and ethical responsibility

2. No

3. Lawsuit may be involved

Explanation:

1. Every US company apart from environmental or safety laws in the locality where it operates, have a moral and ethical responsibility to do what is right in terms of safe work practices and product safety/quality.

2. Even though some countries may have less strict laws than the US, moral and ethical responsibility should always thrive. For example, China is known to have less strict manufacturing standards than the United States, however this does not justifies a company to practice unsafe manufacturing standards.

3. For corporations selling products overseas that are banned in the United States, such as DDT to countries that were known to still allow it sales such as India, and North Korea. A lawsuit against those corporations may be considered legal.

8 0
3 years ago
A methods and measurements analyst needs to develop a time standard for a certain task. In a preliminary study, he observed one
CaHeK987 [17]

Answer:

120 seconds (2 minutes)

Explanation:

Standard time = normal time + allowances

The normal time is computed using the following formula

normal time = observed time X ratings/100

observed time mean = (84+76+80+84+76)/5 = 80

A person who is 25% faster has a rating of 125%

normal time = 80 X 125/100 = 100 seconds

Allowances is calculated as a percentage of normal time

Allowance = 80 X 20/100 = 20 seconds

Standard time = 100 + 20 = 120 seconds

3 0
3 years ago
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