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
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Answer:
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Explanation:
Could you please give more detail
The First Dragoon Expedition of 1834 (also called the Dodge-Leavenworth Expedition) was an exploratory mission of the United States Army into the southwestern Great Plains the United States. It was the first official contact between the American government and the Southern Plains Indians.
Answer:
Following the excerpt from the citizens United case, I think corporations and organisations should be more restricted in their campaign donations.
Explanation:
At this moment, money plays a huge role in politics: companies use donations to help raise attention to problems the want to be taking care of, while at the same time avoiding others that could potentially be affect there own business.
This is a huge problem because there are many issues that politics should talk about, but they are not doing it because companies that pays money prefer that those subject are not talking about, like climate change and social injustice, for example.
Money in politics, especially when it comes for companies that have their own agenda, is dangerous because it put companies interested above public interest.