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babunello [35]
3 years ago
9

The 2008 credit crunch occurred when banks reduced lending in response toa the loss of asset value for mortgage-backed securitie

s and mortgage loans.b having too little capital to satisfy capital requirements.c an excess of bank capital.d an increase in the required reserve ratio.
Business
1 answer:
rjkz [21]3 years ago
6 0

Answer:

The correct answer is option a.

Explanation:

In 2007-2009 financial crisis occurred globally which originated in the US. It was triggered in the US because of the collapse of the housing bubble which caused the price of houses to decline.  

The housing bubble was backed by mortgages securities. The percentage of lower quality or subprime mortgages increase around 2004-06.  

This reduction in the asset value for mortgage securities caused the banks to reduce their lending as the debts on consumers and businesses were increasing.  

This caused the credit crunch in the year 2008.  

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Use the following information about the current year's operations of a company to calculate cash provided by operations.Net inco
NikAS [45]

Answer:

Cash from operations:

Net income                                   $100,000

Depreciation Expense                       6,000  

Decrease in Accounts Payable        (5,000)

Increase in Accounts Receivable     (4,000)

Increase in Merchandise Inventory (8,000)

Decrease in Salaries Payable          (2,000)

Cash from operations                   $87,000

Explanation:

a) Data and Calculations:

Net income $ 100,000

Decrease in Accounts Payable 5,000

Increase in Accounts Receivable 4,000

Increase in Merchandise Inventory 8,000

Decrease in Salaries Payable 2,000

Depreciation Expense 6,000

Not an operating activity:

Gain on Sale of Machinery 2,000

b) The gain on the sale of machinery is not an operating activity or a cash flow item.  Cash inflow is recorded when there is a sale of the machinery  and as an investing activity.  Increase in current assets (except cash) are uses of fund together with decreases in current liabilities.

5 0
3 years ago
The largest Herfindahl-Hirschman index possible is _____, and the industry is a(n) _____. 10; monopoly 10,000; monopoly 100,000;
Fofino [41]

The largest Herfindahl-Hirschman Index that an industry can get is <u>10,000 </u>and the only industry this is possible in is a Monopoly.

The Herfindahl-Hirschman Index (HHI) is calculated by summing the squares of the market shares of the various companies in an industry.

In a monopoly, a company could have a 100% market share. When this happens, the HHI would be:

= 100 ²

= 10,000

In conclusion, the highest HHI is 10,000 and this can only happen in a monopoly.

<em>Find out more at brainly.com/question/4563430. </em>

6 0
2 years ago
Meric Mining Inc. recently reported $15,000 of sales, $7,500 of operating costs other than depreciation, and $1,200 of depreciat
fomenos

Answer:

final net income = $3830.9375

Explanation:

GIVEN DATA:

sales = $15000

DEPRECIATION = $1200

interest rate = 6.25%

federal+state income tax rate -  35%

OPERATING COST EXCLUDING DEPRECIATION = $7500

total  operating cost = 7500+ 1200 = $8700

interest given = 6500*0.0625=406.25

net income with tax= 15000-8700-406.25 = 5893.75

final net income = 5893.75*(1-0.35)=3830.9375

4 0
3 years ago
In an FRA, the buyer agrees to pay the seller
guapka [62]
C.

A Forward Rate Agreement (FRA) is an OTC rate derivative in which the buyer will pay or receive at maturity the difference between a fixed rate and a reference interest rate applied onto either a borrowing or lending (the notional is never exchanged), for a specific period of time.
8 0
3 years ago
4. If you were to deposit $1,000 into an account that paid 10 percent interest compounded semiannually, how much money would you
vodka [1.7K]
B because is diving
4 0
3 years ago
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