When capital adequacy line is equal to the savings per worker function then "normal expected returns to investor".
<h3>What is
capital adequacy/requirement ratio?</h3>
The capital adequacy ratio (CAR) gauges a bank's level of capital retention in relation to its level of risk. The CAR of banks must be monitored by national regulators in order to ascertain how well it can withstand an acceptable amount of loss.
The components of capital adequacy are-
- The Capital Adequacy Ratio (CAR) aims to ensure that banks have an adequate amount of capital to safeguard depositors' funds.
- (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets is the calculation for CAR.
- The BIS's capital standards have tightened up in recent years.
- By reducing the likelihood of bank insolvency, capital adequacy ratios promote the effectiveness and stability of a country's financial system.
- A bank with a high capital adequacy ratio is typically thought to be secure and likely to fulfill its financial obligations.
The principle of capital adequacy are-
- High-quality and loss-absorbing capital are both necessary.
- The Basel III criteria for common stock, along with supplementary tier 1 and tier 2 capital, are applied to establish the quality of capital, with retained earnings being the most important factor.
To know more about the capital requirement, here
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Answer:
Abraham Lincoln defined democracy as the government of the people, which was made by the people for the people. Lincoln believed that it was the right of every person in America to have equal rights and equal opportunities. He believed that no discrimination should be made on the basis of caste, colour or creed. He described that is was basic natural rights of people to have freedom from slavery and it was the political right of people to vote.
The best description of the social classes in Saint Domingue was B-European settlers controlled wealth and politics.
<h3>What was Saint Domingue like?</h3>
- The French Europeans controlled the government of the island.
- The Mulattos were second class citizens but considered higher than the enslaved people.
The enslaved were more in number and when the Haitian Revolution broke out, it was due to their efforts and Mulatto leadership that it was successful.
In conclusion, option B is correct.
Find out more on the Haitian Revolution at brainly.com/question/26002867.
Answer:
Germany’s offer of land posed a direct threat to the United States.
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