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4 years ago

Why does the free-market system bring efficiency as well as freedom?

1 answer:

3 0

it allows people to sell whatever they want and they have control over how much they need to sell instead of being controlled by government. It allows completion and provides incentive (motivation) which leads to greater profit and contributes to the economy

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Some banks offer special accounts designed to attract junior high school students. These kids save in such small amounts that th

tatiyna

Answer:

They recognize the lifetime value of customers.

5 0

4 years ago

Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions.

Nana76 [90]

Answer:

The explanation is given as follows.

Explanation:

Task 1:

The higher the percentage of assets a bank holds as loans, the higher the capital requirement.

When the owners of the bank borrow $100 to supplement their existing reserves , both reserves and debt increase by $100 , therefore increase in debt as in any balance sheet , the total value of accounts on the left hand should be equal to the right hand , so when there is increase in reserves , there will be increase in debt.

Task 2:

It specifies a minimum leverage ratio for all banks

leverage ratio initially = total assets / capital = 1750 / 125 = 14

leverage ratio new value = total assets / capital = 1850 / 125 = 14.8 ( the assets increase by $100 with increase in reserves)

Task 3

Its intended goal is to protect the interests of those who hold equity in the bank.

Capital requirement are there to ensure that bank have enough capital to repay the depositors and debtors and if a bank holds a higher percent of risky assets , capital requirements will be higher so that the bank remains solvent hence option a is right answer.

4 0

4 years ago

Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per hour worked by $500. If capit

kherson [118]

Answer:

The real GDP per hour worked to increase if there are diminishing returns by less than $500.

Explanation:

Increase in capital per worker from $15000 to $ 20000 increases real GDP per hour worked by $ 500. If there is diminising return to scale then any amount of further increase in capital per worker (say further to 25000 ) will increase GDP less than $ 500. This is because diminising return implies that as we increase our inputs the quantity of our output goes on diminishing. Here the diminishing return has already started ,therefore addtional unit of output will only decrease due to increase in additional unit of input.

Therefore, The real GDP per hour worked to increase if there are diminishing returns by less than $500.

3 0

3 years ago

Experts recommend that you don't wait for sales before buying an item since the item is likely to rise in price during the time

Shkiper50 [21]

Trueeeeeeeeeeeeeeeeee

7 0

3 years ago

Read 2 more answers

Barry’s Steroids Company has $1,000 par value bonds outstanding at 13 percent interest. The bonds will mature in 30 years. If th

labwork [276]

Answer:

Total Present Value is ($1130.194 + $43.7) = $1173.894

Explanation:

11 percent yield to maturity

TO CALCULATE: Present Value of Interest Payments

PV_A = A × PVIFA (n = 30, i = 11%) Appendix D

where A = 13% of 1000 = 130

from PVIFA table , for n = 30 and i = 11%, PVIFA value is 8.6938

PV_A = $130 × 8.6938 = $1130.194

TO CALCULATE : Present Value of Principal Payment

PV = FV × PVIF (n = 30, i = 11%)

from PVIF table , for n = 30 and i = 11%, PVIF value is 0.0437

PV = $1,000 × 0.0437 = $43.7

From above calculation we have following conclusion

Present Value of Interest Payments is $1130.194

Present Value of Principal Payment is $43.7

therefore Total Present Value is ($1130.194 + $43.7) = $1173.894

6 0

3 years ago