The correct answer is B.) The problem of scarcity does not exist.
Because since it is a 'perfectly competitive' market then scarcity shouldnt exist.
-Autumn Leaves
Answer:
Composure and time management
Explanation:
these are realistic goals that people can reach and will have a positive outcome (do you mind following)
Answer:
P=$40
Explanation:
We will apply constant dividend growth model that is =P = D1 / ( k-g )
P is the price of share ?
D1 is the current divided $2
k is the rate of return 9%
G is the constant growth 4%
P=2/(9%-4%)
P=$40
Answer:
The explanation is given as follows.
Explanation:
<u>Task 1: </u>
<u>The higher the percentage of assets a bank holds as loans, the higher the capital requirement.</u>
When the owners of the bank borrow $100 to supplement their existing reserves , both reserves and debt increase by $100 , therefore increase in debt as in any balance sheet , the total value of accounts on the left hand should be equal to the right hand , so when there is increase in reserves , there will be increase in debt.
<u>Task 2:</u>
<u>It specifies a minimum leverage ratio for all banks
</u>
leverage ratio initially = total assets / capital = 1750 / 125 = 14
leverage ratio new value = total assets / capital = 1850 / 125 = 14.8 ( the assets increase by $100 with increase in reserves)
<u>Task 3</u>
<u>Its intended goal is to protect the interests of those who hold equity in the bank.</u>
Capital requirement are there to ensure that bank have enough capital to repay the depositors and debtors and if a bank holds a higher percent of risky assets , capital requirements will be higher so that the bank remains solvent hence option a is right answer.
Answer:
d
Explanation:
the more the suppliers the more the competition would be among suppliers to gain customers. As a result, they would offer lower prices in the short run to customers to gain them.
In the long run, suppliers would leave the oversaturated industry and equilibrium would be restored.
