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Karolina [17]
3 years ago
14

Do you think that eliminating or limiting the amount of deposit insurance would be a good​ idea? Explain your answer. A. It is a

good idea. Eliminating or limiting the amount of deposit insurance would help increase the moral hazard of excessive risk taking on the part of banks.​ Moreover, it would make bank failures and panics less likely. B. It is not a good idea. Eliminating or limiting the amount of deposit insurance would help increase the moral hazard of excessive risk taking on the part of banks. It​ would, however, make bank failures and panics more likely. C. It is a good idea. Eliminating or limiting the amount of deposit insurance would help reduce the moral hazard of excessive risk taking on the part of banks.​ Moreover, it would make bank failures and panics less likely. D. It is not a good idea. Eliminating or limiting the amount of deposit insurance would help reduce the moral hazard of excessive risk taking on the part of banks. It​ would, however, make bank failures and panics more likely.
Business
1 answer:
AfilCa [17]3 years ago
7 0

Answer:B. It's not a good idea. Eliminating or limiting the amount of deposit insurance would help increase the moral hazards of excessive risk taking on the parts of bank. It would however make banks failures and panics more likely.

Explanation:

The elimination would increase risk taken and bank failures, when there is no coverage for failures.

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When the Fed sells government securities in the open​ market, the money supply​ ________ because​ ________. A. ​increases; banks
Brums [2.3K]

Answer: Option (B) is correct.

Explanation:

Open market operations: In Open market operations, there is a buying and selling of government securities by the central bank of a nation. It is a monetary policy instrument that is used to control money supply in an economy.

If Fed sells the government securities in the open market then as a result there is a transfer of from public to Fed. So, there is a fall in the money supply because banks lose liquidity. Now, banks are able to make fewer loans to the borrowers and checking deposits also decreases.

5 0
3 years ago
Purple Rose Corporation reported pretax book income of $500,000.
Vikentia [17]

Answer: $68,000

Explanation:

Let us assume that we are given a tax rate of 34% to use in computing the question. Therefore, Purple Rose's current income tax expense or benefit will be:

Pre-tax book income = $500,000

Less: Tax depreciation = $300,000

Net Income = $500,000 - $300,000 = $200,000

Current income tax expenses at 34% will then be:

= 34% × Net income

= 34/100 × $200,000

= $68,000

5 0
3 years ago
Suppose in the short run a firm’s production function is given by Q = L 1 2 K 1 2 and that K is fixed at K = 10. If the price of
Furkat [3]

The firm’s marginal cost of production when the firm is producing 50 units of output is 33.33

Solution:

The production function is Q = \sqrt{L * K}

The initial value is 10 units. The production value is 50 units The manufacturing cycle needs work as stated below.

Q = \sqrt{L * K}

Q = \sqrt{L * 10}

L = (\frac{Q}{3.162} )^{2}

The wage rate is $15 . The following is the expense of the manufacturing process.

TC = P_{L} * L + P_{K} * K

TC = ( 15 * (\frac{Q}{3.162} )^{2} ) + [ P_{k * 10}]

The marginal production cost is really the increase in manufacturing costs as output increases by 1 point.

As listed below, the marginal cost:

TC = ( 15 * (\frac{Q}{3.162} )^{2} ) + [ P_{k * 10}]

MC = \frac{TC}{Q} = \frac{2Q}{3}

MC = \frac{2*50}{3} = 33.33

6 0
3 years ago
whichof the following best explains why the game of economics is about setting goals as much as it is about making allocation de
Xelga [282]

There are different and incompatible economic goals. (APEX Class ;)

5 0
3 years ago
Read 2 more answers
g: Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement
madam [21]

Answer:

Total contribution margin= $59,800

Explanation:

Giving the following information:

Unitary selling price= 155,400 / 4,200= $37

Unitary variable cost= 100,800 / 4,200= $24

<u>To calculate the total contribution margin, we need to use the following formula:</u>

Total contribution margin= units sold*(selling price - unitary variable cost)

Total contribution margin= 4,600*(37 - 24)

Total contribution margin= $59,800

6 0
3 years ago
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