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4 years ago

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

Business

2 answers:

Tom [10]4 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]4 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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Which of the following transactions are counted in GDP? Instructions: In order to receive full credit, you must make a selection

Inessa05 [86]

Answer:

Kerry buys a new sweater to wear this winter.

Jasmine buys a new car.

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

Items not included in the calculation off GDP includes:

1. services not rendered to oneself

2. Activities not reported to the government

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

The purchase of the sweater and the purchase of the new car constitutes consumption spending and it would be added as part of GDP.

The cash gift and Social Security check are transfer payment s and would not be included as part of GDP

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3 years ago

Adger Corporation is a service company that measures its output based on the number of customers served. The company provided th

sergeinik [125]

Answer:

1. Total Revenue in May $ 175,000

2. Total Salaries & wages For May $ 88500

3. Total Travel Expenses for May $21,000

4. Other Expense $ 36,000

5. Operating Income $ 65,500

Explanation:

Given

Adger Corporation

Fixed Element Variable Element Actual Total

per Month per Customer Served for May

Revenue $5,000 $160,000

Employee Salaries

& wages $50,000 $1,100 $88,000

Travel expenses $600 $19,000

Other expenses $36,000 $34,500

There were 35 customers.

Revenue = $5000 per customer

We can easily calculate as we have been given the number of customers and the variable element of expense per customer.

1. Total Revenue in May = 5000 * 35= $ 175,000

Variable Salaries & wages = $ 1100 per customer

Total Variable Salaries & wages = $ 1100 *35= $ 38500

2. Total Salaries & wages For May = Variable + Fixed

= $ 38500 + $50,000= $ 88500

Travel expenses = $600per customer

3. Total Travel Expenses for May = $ 600 *35= $21,000

4. Other Expense = Fixed Expenses = $ 36,000 ( there are no variable expenses)

5. Operating Income= Revenue - Employee Salaries - Travel Expenses

= $ 175,000- $ 88500 - $ 21,000= $ 65,500

Other expenses are included in the net income statement not operating income statement.

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4 years ago

Suppose you transfer $1,000 from your checking account to your savings account. How does this action affect the M1 and M2 money

spayn [35]

Answer:

D) M1 falls by $1,000, and M2 is unchanged.

Explanation:

since checking account comes under M1, a transfer would result in fail, Therefore, a transfer would result in a change in M1 but shows no effect on M2

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4 years ago

g Declaring bankruptcy by the bond issuing firm ______ . a. has no impact on value of its bonds b. increases the value of its bo

Scilla [17]

Answer:

c. decreases the value of its bonds

Explanation:

There is a significant decrease in the value of the bond if the firm declares bankruptcy.

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3 years ago

Perteet Corporation's relevant range of activity is 6,600 units to 13,000 units. When it produces and sells 9,800 units, its ave

sergij07 [2.7K]

Answer:

Total overhead cost= $43,520

Explanation:

Giving the following information:

Variable manufacturing overhead $ 1.80

Fixed manufacturing overhead $ 3.10

First, we need to calculate the total fixed overhead:

Total fixed overhead= 3.1*9,800 = $30,380

Now, the total overhead cost for 7,300 units:

Total variable overhead= 7,300*1.8= 13,140

Total fixed overhead= 30,380

Total overhead cost= $43,520

4 0

3 years ago