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liq [111]
3 years ago
5

Why do bank panics worsen asymmetric information problems in credit markets?

Business
1 answer:
slava [35]3 years ago
5 0
Bank panics lead to various problems such as fear among the depositors for their safety of money deposited and decline in the assets of the bank.

Bank panic worsen asymmetric information problems in credit markets because  IF A BANK FACES LOSS IT CANNOT RESOLVE AND MANAGE THE ASYMMETRIC INFORMATION PROBLEMS. THIS WORSENS THE ASYMMETRIC INFORMATION PROBLEM IN THE CREDIT MARKETS.
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As a manager for your company some of your responsibilities include measuring metrics and overseeing company strategies. You obs
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The primary reason for the large increase in productivity would be the management factor.

Explanation

An important factor that affects the productivity in a company is the management that can have a great influence as good managers that are competent, make a good use of the resources, implement good strategies and develop good relationships with employees generating a good working environment help increase the productivity. According to the question, this is the main reason that can be inferred.

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3 years ago
The Hi-Stakes Company has a number of importing and exporting transactions. Importing activities result in payables and exportin
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a. If the direct exchange rate increases, the dollar strengthens relative to the other currency.

b. If the indirect exchange rate increases, the dollar also strengthens relative to the other currency.

Explanation:

When the exchange rate increases, it means that more of the other currency is required in order to embark on importing and exporting transactions.  However, the increases will weaken the ability of the importing currency to afford the dollar-based goods, which have then being made more expensive.

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2 years ago
Which of the following individual situations typically leads to increased income needs, reduced risk tolerance, and greater need
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Answer:

The correct answer is option C) Responsibility for others

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They have to pay for not only themselves, but others too, most commonly their family. Therefore, they think of investing in assets that have a high profit return and low risk of failure such as buying a property for future purposes or looking for a job that has more long term privileges.

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3 years ago
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2 years ago
The portfolio that contains the average return on a combination of market index with the same beta is often called _____________
elena-s [515]

The portfolio that contains the common return on a mixture of market index with the same beta is often known as protection market line.

<h3>Is safety market line the same as CAPM?</h3>

The safety market line (SML) is a visual representation of the capital asset pricing model (CAPM). SML is a theoretical representation of the predicted returns of belongings primarily based on systematic, non-diversifiable risk.

<h3>How do you study a security market line?</h3>

The two-dimensional correlation between anticipated return and beta can be calculated via the CAPM formula and expressed graphically via a safety market line, or SML. Any protection plotted above the SML is interpreted as undervalued. A safety under the line is overvalued.

Learn more about security market line here:

<h3>brainly.com/question/15877803</h3><h3 /><h3>#SPJ4</h3>
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