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
When the US government becomes aware of economic changes, the discovery is most likely to influence 1. how the nation allocates
snow_tiger [21]

Answer:

1. How the nation allocates resources

Explanation:

Government is the chief decision maker in any economic model because their power enables to allocate nation`s resources among economic unit. As such they keep watch on the economic changes and trends in order to make the best economic decision for the nation. When government becomes aware of economic changes, it will try to allocate resources efficiently and effectively based on signal given by the changes.

For example, if US government is aware that the economy is nearing recession, it will be put in preventive measures to escape the intending recession and make sure it allocates its scarce in efficient way among the economic units by spending more on capital projects, raising social empowerment spending and doing other necessary things.

So the discovery of economic changes will most likely influence how the nation allocates resources.

5 0
3 years ago
Which of the following, identified in an analysis of the general environment, is an opportunity for an entrepreneur who wishes t
kvasek [131]

Answer:

a. The average age of the population in his community is high.

Explanation:

As the average age of the population in his community is high, it is an opportunity for an entrepreneur who wishes to open a business providing "Fitness for Life" physical conditioning services (strength, balance, and flexibility training) in a city of 100,000 people because people will be more interested in the physical conditioning services and they will be attracted towards it as when the age rises, people become more interested in the health related activities, therefore, chances are very high that this will pose a serious and profitable opportunity for the entrepreneur in that particular city. He or she can definitely capture this opportunity very handsomely and profitably.

5 0
3 years ago
You are planning a store on a large lot. Your budget only allows for 800 linear feet of walls. What is the maximum square
Galina-37 [17]

Answer:

The correct solution is "40,000 sq/ft".

Explanation:

The given value is:

Feet of walls

= 800 ft

Sides,

= 4

Now,

The square store will be:

= \frac{800}{4}

= 400 \ ft

The max footage of square will be:

= 400\times 100

= 40,000 \ sq/ft

8 0
3 years ago
An organization that creates many products with similar characteristics, using assembly lines would most likely be categorized a
Kisachek [45]

Answer:

Continuous manufacturing organisation

Explanation:

Continuous production uses a production plant to manufacture a product continuously. It is also called continuous flow.

This is so called because the materials inputted in the production process is in continuous motion as it moves through the production line.

The products tend to be similar or standardised with no distinguishing features. For example cement, fertiliser, and sugar

6 0
3 years ago
The inheritance pattern for red-green color blindness is different for males compared to females. Red-green color blindness is m
Komok [63]

Answer:

The gene that causes color blindness is linked to the X chromosome and it is much more frequent in males than females because females have two X chromosomes. So for a female to suffer from color blindness, both of her X chromosomes should carry the genetic disorder.

7 0
3 years ago
Other questions:
  • Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provid
    7·1 answer
  • Which of these statements about contingent workers is true?
    11·1 answer
  • things that can be used to make money in this pandemic like face mask, face shield give me atleast 5 business.​
    12·1 answer
  • ) Sill Corporation makes one product. Budgeted unit sales for January, February, March, and April are 9,900, 11,400, 11,900, and
    14·1 answer
  • A restaurateur spends $61 on labor and materials to produce 8 meals. by increasing these costs to $78, he can produce 14 meals.
    7·2 answers
  • An audit of historical financial statements most commonly includes the Group of answer choices income statement, the statement o
    13·1 answer
  • An emergency fund should NOT be used for...
    12·1 answer
  • An environmental soil cleaning company received a contract to remove BTEX contamination from an oil company tank farm site. The
    9·1 answer
  • Sox Corporation purchased a 30% interest in Hack Corporation for $1,825,000 on January 1, 2021. On November 1, 2021, Hack declar
    9·1 answer
  • Fill in the blanks with the category of the expanded accounting equation (assets; liabilities; owner, capital; owner, withdrawal
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!