1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
riadik2000 [5.3K]
3 years ago
13

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
You might be interested in
Omega Corporation uses process costing to calculate the cost of manufacturing pool systems. Beginning work in process included 3
Karo-lina-s [1.5K]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
6 0
3 years ago
Which of the following would be relevant in the decision to sell or throw out obsolete inventory?
Rom4ik [11]

Answer:

D) No No

Explanation:

Direct material cost and fixed overhead cost assigned to inventory, both are irrelevant in the decision to sell or throw out obsolete inventory because these costs are already incurred and treated as sunk cost.

4 0
3 years ago
Delinquency occurs at how many days past due on your loan repayment?
Maslowich

Delinquencies are reported when the loan is 30 or more days past due to the credit bureau. When the borrower is 90 or more days past due is stated to be a serious delinquency.

<u>Explanation:</u>

Delinquency is a situation in which the loan borrower fails to pay the loan or makes an overdue on the periodical payment.

<u>Delinquency rate:</u>

The percentage of loans within the loan portfolio of a financial institution whose payments are delinquent. The formula to calculate the delinquency rate is as follows,

\text{Delinquency Rate }=\frac{\text{Number of delinquent accounts}}{\text{total number of credit accounts}}\times100

<u>Average days delinquent:</u>

This is calculated by subtracting the days sales outstanding (DSO) from best Possible DSO which is represented as

<u></u>\bold{\text{ADD= Days Sales Outstanding - Best Possible Days Sales Outstanding}}<u></u>

5 0
3 years ago
In a market system, which component conveys information about what is relatively scarce and what is relatively abundant?
denis23 [38]

<span>The answer is price. The price of a good conveys about its relative scarcity or abundancy. If the price is high, the good is scare meaning you can gain money by selling extra of it, and you can save money by buying a lesser amount of it. If you act according to your self-interest, selling more and buying less of that costly good, the scarcity of that good will be toned-down. If the price of a good is low, you can exhilarated to do the contrary, thus removing any excess of the good in the market. </span>

8 0
3 years ago
Woodmier Lawn Products introduced a new line of commercial sprinklers in 2020 that carry a one-year warranty against manufacture
blagie [28]

Answer:Woodmier journal $

1. Date

2021

Warranty expenses Dr 90,000

Warranty liability Cr. 90,000

Narration. Amount of warranty incurred for the year.

2021

Warranty liability Dr 90,000

Bank/Cash. Cr. 90,000

Narration. Payment of warranty expenditures.

2. No entry require

Explanation:

The warranty expenses since is a period of one year can be accounted for at the end of the year without requirements for provision at the beginning of the year. The actual warranty is debited to the income statement and the liability recognized as a creditor until payment.

The discontinuation of the sales of the product in 2021 will not affect the already incurred warranty liability and the account posting thereon in the following years.

8 0
3 years ago
Other questions:
  • Which of the following does not apply to field
    13·2 answers
  • Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the
    15·1 answer
  • Jeep recognizes that it has some customers who like roomy suvs, while others like more compact versions. it also has customers w
    8·1 answer
  • A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and co
    6·1 answer
  • Name and describe the four basic types of fees and cost a franchise owner must pay
    12·1 answer
  • Arthur is a 30 percent partner in the CAR Partnership. At the beginning of the tax year, Arthur's basis in the partnership inter
    11·1 answer
  • The ways a product can reach a customer is called
    15·1 answer
  • Brad could no longer stand the smell emanating from his neighbor Clarence's compost heap that grew more odorous as the summer pr
    6·1 answer
  • You will need to revise your budget to account for a car payment. Which expense category would be the most difficult to change o
    6·1 answer
  • PLEASE HELP QUICK!! 30 POINTS &lt;3 What is a skill you could practice now that would be MOST likely to help you if you pursue a
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!