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3 years ago

Which of the following is true of the capital requirement? Check all that apply.

Business

2 answers:

Tom [10]3 years ago

6 0

Answer:

The correct answer is B.

Explanation:

Capital requirement, also sometimes called regulatory capital, means the standard requirement required of banks and other institutions where funds are deposited, a requirement that determines the maximum amount of capital required that the entity must maintain as a proportion of a certain level of assets according to the regulations of regulatory agencies such as the Bank for International Settlements, the Federal Deposit Insurance Corporation or the Federal Reserve Council. These capital requirements are imposed to ensure that these institutions do not participate or maintain investments that can increase their risk of bankruptcy and that they have sufficient capital to maintain their operational losses while still being able to take care of new withdrawals.

Nady [450]3 years ago

6 0

The intended goal of the capital requirement is to protect the interest of those who hold equity in the bank and also the higher the percentage of assets holds as loans, the higher the capital requirement. Therefore, the correct answer is A and B

Capital requirements refer to the exact amount of capital a bank or other depository institutions must have in line with the requirements of its financial regulator.

<h2>Further Explanation </h2>

Capital requirements are put in place by the financial regulator to protect the interest of the depositors in case of a market crash, recession or financial crises

Capital requirements are also put in place to make sure that the activities of banks and other financial institutions are dominated by investors. The capital requirements are also to ensure that banks have the required amount of capital to take care of operating loses while depositors can still be able to withdraw.

The advantages of capital requirement include:

It ensures depositors have access to their money.

It provides measures to evaluate and financial institution

It ensures that banks and other depository organizations can meet up with their financial obligations.

Some disadvantages of capital requirements include:

It negatively affects the banks’ ability to invests
It reduces access to credit and loans.

Some of the regulatory institutions that set capital requirement include

Bank for international settlement
Federal Reserve board
Federal deposit insurance cooperation

LEARN MORE:

Which of the following is true of the capital requirement? Check all that apply. brainly.com/question/13789384
Which of the following is true of the capital requirement? Check all that apply. brainly.com/question/13108033

KEYWORDS:

capital requirements
percentage of assets
equity
loans
interest

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sdas [7]

Answer:

The correct answers are:

i. The marginal, or additional, gain from Maria’s first hour of work, from 8:00 AM to 9:00 AM, is <u> 40 </u> problems.

ii. The marginal gain from Maria’s third hour of work, from 10:00 AM to 11:00 AM, is <u> 20 </u> problems

iii. 2 hours working on problems, 2 hours reading (c)

Explanation:

i. The marginal gain from 8:00 AM to 9:00 AM is calculated thus:

work done at 8:00 AM = 0 problems

Work done at 9:00 AM = 40 problems

Marginal gain = (Work done at 9:00 AM) - (work done at 8:00) = 40 - 0 = 40 problems

ii. work done at 10:00 AM = 70 problems

work done at 11:00 AM = 90 problems

Marginal gain = 90 - 70 = 20 problems

iii. To get the best exam score, the most number of problems possible in total must be answered within the 4-hour period, and this is determined as follows:

we are told that Maria gets tired as time progresses and the number of questions answered reduces we notice the following numbers of questions answered in each hour:

8:00 AM to 9:00 AM = 40 - 0 = 40 problems (hour 1)

9:00 AM to 10:00 AM = 70 - 40 = 30 problems (hour 2)

10:00 AM to 11:00 AM = 90 - 70 = 20 problems (hour 3)

11:00 AM to Noon = 100 - 90 = 10 problems (hour 4)

Also, we are told that;

1 hour of reading = 25 problems

Comparing the reading and solving problems, we see that the number of problems solved in hour-1 and hour-2 (40 and 30 respectively) are more than the equivalent number of problems solved in reading for 1 hour, while hour-3 and hour-4 (20 and 10 respectively), have lesser equivalent number of problems each, than reading for one hour. Therefore to make the most out of the 4 hours, Maria will spend the first 2 hours solving problems and the next two hours reading, giving a total of: 40 + 30 + 25 + 25 = 120 problems solved.

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