1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Viefleur [7K]
3 years ago
7

Increased size of financial institutions resulting from financial consolidation increases the ________ problem, because there ar

e now more large institutions whose failure would expose the financial system to systemic risk.
Business
1 answer:
Marysya12 [62]3 years ago
8 0

<u>Answer:</u>Increased size of financial institutions resulting from financial consolidation increases the to big to fail problem,

<u>Explanation:</u>

First challenge which the financial consolidation poses is that when the financial institutions size increases it brings the to big to fail problem. The systematic risk exposure increases as it has more large institutions in the financial system.

The other challenge here includes that is when the financial consolidation takes place between the banks and other financial service firms then the government safety net covers the new activities undertaken. Which can be securities underwriting, real estate or insurance activities. This is provided as an incentive for taking huge risks.

You might be interested in
Due to the unique nature of this product, tom and melody have decided to develop a half-hour tv program to demonstrate the benef
Ber [7]
It is <span>hoped that this Integrated Marketing Communication program will provide a great start in the market.

It is an idea of showcasing interchanges arranging that perceives the additional estimation of the extensive arrangement that assesses the key parts of an assortment of correspondence disciplines. It consolidates all components of advancement blend into one thorough and bound together procedure. The thought is to utilize every single limited time device and assets to make a brand picture.
</span>
7 0
3 years ago
Beck Inc. and Bryant Inc. have the following operating data:__________.
DiKsa [7]

Answer:

a. Beck Inc. = 5.00  and Bryant Inc. = 2.50

b. Beck Inc. =  $100,000 and 100%  : Bryant Inc. =  $150,000 and 50 %

c. True.

Explanation:

Degree of Operating Leverage shows,  the times Earnings Before Interest and Tax (EBIT) would change as a result of a change in Sales contribution.

Degree of Operating Leverage = Contribution ÷ EBIT

Thus,

Beck Inc = $500,000 ÷ $100,000

              = 5.00

Bryant Inc. = $750,000 ÷ $300,000

                 = 2.50

<em>If Sales increased by 20% the effects on Incomes would be :</em>

Beck Inc = 20% × 5.00

              = 100%

              = $100,000 × 100%

              = $100,000

Bryant Inc.=  20% × 2.50

              =  50 %

              =  $300,000 × 50 %

              =  $150,000

7 0
4 years ago
Under the Fair Credit Reporting Act of 1970 (FCRA), consumers can stop financial institutions from sharing their credit report o
Westkost [7]

Answer:

True

Explanation:

The Fair Credit Reporting Act of 1970 (FCRA) was enacted as a legislation by the U.S. Federal Government to ensure accuracy, fairness, and privacy of consumer information which consumer reporting agencies have in their files. The aim is to ensure that inaccurate information are not intentionally and/or negligently included in the credit report of consumer reporting agencies.

Although, initially when FRCA was passed in 1970, customers does not have the option of preventing sharing of information about them. However, when FCRA was amended in 1996, it allows companies to share among their affiliates different data collected on their customers subject to the provision that customers are allowed to prevent the sharing of the information.

Therefore, under the Fair Credit Reporting Act of 1970 (FCRA), consumers can stop financial institutions from sharing their credit report or credit applications with affiliates.

I wish you the best.

8 0
3 years ago
uppose you bought a 20-year, $1,000 face-value bond for par 5 years ago. The annual coupon rate on this bond is 8.5% and interes
mojhsa [17]

Answer:

Explanation:

Face Value=1000

Remaining term=15years

coupon rate=8.5% =YTM

purchased 5 years ago

Purchase price=1000

Current required rate of return=8.5%+1.5%=10%

Current price of bond = Coupon amount*PVIFA(RR,N)+Maturity value*PVIF(RR;N)=1000*8.5%*PVIFA(10%;15)+1000*PVIF(10%;15)=85*7.6061+1000*0.2394=885.9185

Decrease in the bond=1000-885.9185=114.0815

8 0
4 years ago
Miguel is 25 years old, has low financial health, a long time horizon and a high risk
arlik [135]

Answer:

A. 85% stocks and 15% bonds/cash equivalents.

Explanation:

Being that Miguel is 25 years old, he has a very long time horizon over which his investments can grow. The fact that he has a low financial health means that he needs to adopt an aggressive investment strategy and that complements his high tolerance for risk. Investing majority of his assets should be in stocks since stocks are riskier than bonds and a small proportion in the latter. Therefore, 85% in stocks and 15% in stocks and cash equivalents would be ideal.

7 0
3 years ago
Other questions:
  • It takes a lawyer 120 minutes to serve one customer. Demand is 2 customers per eight-hour day. The lawyer has a wage rate of $20
    7·1 answer
  • Peregrine Company acquires all of the voting stock of Falcon Corporation for $65,000, in a merger. Falcon’s balance sheet report
    5·1 answer
  • What is a new market?
    5·1 answer
  • A conceptualization the firm as an "activity system" is a means of depicting: A. The extent to which a management is motivated t
    7·1 answer
  • Suppose you were hired as a consultant for a company that wants to penetrate the Comp-XM market. This company wants to pursue a
    12·1 answer
  • Miranda purchased 425 shares of Dagofi Radar stock at $14.15 apiece. She earns $374.00 in dividends every year. What is the yiel
    14·2 answers
  • What is the correct Price Rule Setup? Universal Containers wants to apply an additional discount of 15% to the Quote when Paymen
    11·1 answer
  • An aging of a company's accounts receivable indicates that $4,000 are estimated to be uncollectible. If Allowance for Doubtful A
    14·1 answer
  • Mycrux Company had the following information:
    11·1 answer
  • 2.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!