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
If you put $50 in a savings account that paid 10% compounded yearly, how much interest would you earn in 3 years?
stepladder [879]

Answer:

$66.55

Explanation:

10% of 50 = 5

55 in one year

10% of 55 = 5.5

60.5 in two years

10% of 60.5 = 6.05

66.55 in three years

Hope this helped

4 0
3 years ago
The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for the past
Naddik [55]

Answer:

$633,000.

Explanation:

We use the High-low method to get the cost formula:

\left[\begin{array}{ccc}High&14,250&710,000\\Low&9,250&570,000\\Diference&5,000&140,000\\\end{array}\right]

This means 5,000 machine hours generate 140,000 labor cost

We divide and get the variable cost generate per machine hour:

Cost 140000

machine hours 5000

140,000/5,000 = 28

variable cost 28

Next, we use this to calculate the fixed cost:

total cost = variable cost + fixed cost

fixed cost = total cost - 28 X DL

<u>High:</u>

Total Cost 710,000

Variable 399,000 (14,250 x 28)

Fixed Cost 311,000

<u>Low:</u>

Total Cost 570,000

Variable 259,000 (9,250 x 28)

Fixed Cost 311,000

Now with the cost formula we solve for 11,500 machine hours

cost = 311,000 + 28 X Machine Hours

cost = 311,000 + 28 x 11,500

cost = 633,000

6 0
3 years ago
The portrayal of jobs on TV and in the movies is usually accurate.<br> true or false?
kakasveta [241]
False they tend to make way more easy to get a job on tv an in movies 
3 0
3 years ago
Read 2 more answers
Suppose Germany, a large country, imposes a tariff on tuna imports. Before the tariff, all the countries in the world are engage
Ede4ka [16]

Answer:

1. This is true.

The Germans will pay a higher price for tuna because the tariff will increase the price of imported tuna and the reduction in completion with the local producers will lead to higher prices as the local producers take up their price.

2. This is true.

German producers no longer have to compete as much with imported tuna which was cheaper. They will therefore be able to raise their prices.

3. This statement is false.

The world price of Tuna DOES NOT increase because the tariff is only applicable in Germany. Other parts of the world will trade tuna as before. This is what is assumed.

4. This statement is true.

If Vietnam was exporting tuna to Germany, they will become worse off because they will see a decline in demand for their tuna on account of the tariffs making the tuna more expensive.

5. This is false.

Vietnamese tuna consumers will still pay the same price to get tuna because Vietnam produces the tuna. It is Vietnam's producers that will suffer not the consumers.

5 0
3 years ago
In March 2012, Yoshiro Inc.. decided to retire an outstanding bond issue before maturity. The coupon rate on the bond issue was
natali 33 [55]

Answer:

  • b. Cash from Financing Activities  
  • d. Bonds Payable
  • e. Net Income

Explanation:

Bonds are a form of long term debt and in the cashflow statement this goes to the Financing section. A retirement of bonds would reduce cash and this would come from the Financing activities.

Bonds Payable will also decrease because the bond that is being retired will reduce the number of bonds payable that the company has to pay off.

Finally the Net income will reduce as well to reflect the loss on bond retirement. The bonds were issued at a discount owing to interest rates being higher than the coupon rate in 2011 but on the day the bonds were retired they were selling at a premium with interest rates at 4%. The company paid more than they received and this loss will reduce the net income.

3 0
2 years ago
Other questions:
  • The operations process includes which of the following activities?
    5·1 answer
  • Jake is a sales representative for General Mills. Each week he uploads his plans for visiting clients out in the field to a rout
    15·1 answer
  • You are trying to choose between two stocks, Widget and Gadget. Widget has a current stock price of $30 and earnings per share o
    9·1 answer
  • Currently, at a price of $1 each, 100 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity
    11·1 answer
  • On December 1, Macy Company sold merchandise with a selling price of $9,000 on account to Mrs. Jorgensen, with terms 4/10, n/30.
    7·1 answer
  • Guns R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income
    15·1 answer
  • 'Modigliani Manufacturing has a target debt-equity ratio of .50. Its cost of equity is 18 percent and its cost of debt is 11 per
    9·1 answer
  • Newspapers in the nation of Hasalot report a significant increase in money supply during the past few months. This information i
    13·1 answer
  • While in the short run an economic profit is more likely in an unregulated monopoly, ___________ may group competing resources a
    12·1 answer
  • Griffin goat far inc has sales of 666000, depreciation expense of 72000, interest expense of 46000, nad a tax rate of 24 percent
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!