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Gnom [1K]
3 years ago
15

The possibility that the failure of one bank can hasten the failure of other banks is called the:

Business
1 answer:
77julia77 [94]3 years ago
3 0

Answer:

Contagion Effect

Explanation:

Contagion Effect is the <u><em>spread of an economic crisis</em></u> from one market or a region to another. It refers the diffusion effect of crisis throughout a market.

Simply put, If a large bank sells off most of its assets quickly, the confidence in other banks declines.

Hence, it's said to have followed the contagion effect, spread of a crisis from one market to another.

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Jacques lives in San Diego and runs a business that sells boats. In an average year, he receives $728,000 from selling boats. Of
Gwar [14]

Answer:

1. <u>implicit cost</u>

2.<u> explicit cost</u>

3. <u>implicit cost</u>

4. <u>explicit cost</u>

Explanation:

Implicit costs refer to those costs that represent opportunity cost. In simple terms they are notional or those which haven't been actually incurred but considered.

Opportunity costs refer to the cost of sacrificed alternatives when an alternative is opted for. For instance, a student pursuing post graduation incurs implicit cost in the form of income foregone had he chosen to work instead for the same duration.

In the given case, the foregone rental income Jacques would've earned had he chosen to rent out his showroom represents opportunity cost or implicit cost.

Similarly, the salary Jacques sacrificed by working in boat business represents implicit cost.

The wages and utility bills that Jacques pays and wholesale cost which he pays represent costs which have actually been incurred, which are termed as explicit costs.

6 0
3 years ago
A _____ negotiates with users who might have conflicting requirements or want changes that would require additional time or expe
viktelen [127]
I believe that the correct answer is b project manager<span />
7 0
3 years ago
Jones &amp; Hilton Co. owned a large cold storage warehouse where they stored and processed meat and meat products. An insider r
8090 [49]

Answer:

4. U.S. Department of Agriculture

Explanation:

The U.S. Department of Agriculture, one of the most powerful executive departments in the United States, has as one of its functions the responsability to ensure food safety.

For this goal, it has one subdivision: the Food Safety and Inspection Service, which has over 9,000 employees across the U.S.

That is the specific department that would carry out the inspection, and initiate legal proceedings in case of irregularities. It is in charge of ensuring food safety for consumers in the places where food is manipulated, distributed, and sold.

4 0
3 years ago
Choose the correct answer in the following statements about financial and real assets.
lora16 [44]

Answer: Please refer to Explanation

Explanation:

A financial asset is a non-physical asset that that gets it's value from a contract that was signed by the parties involved.  Financial assets include Bonds, stocks and even cash amongst others.

Real Assets on the other hand are physical assets that can be seen and hence have an inherent value. Examples include buildings and cars.

a.  Toyota <u>creates</u> a <u>real asset</u>- the factory. The loan is a <u>financial asset </u>that is <u>created</u> in the transaction.

The factory becomes a real Asset that is tangible and has an inherent value. The loan was created by an agreement between Toyota and the bank and so is a Financial Asset.

b. When the loan is repaid, the <u>financial</u> asset is <u>destroyed</u> but the <u>real</u> asset continues to exist.

When the loan is repaid, Toyota no longer owns that financial asset because it has gone back to the bank. However, the Real Asset which is the factory that they were able to build will remain with Toyota.

c. The cash is a <u>financial</u> asset that is traded in exchange for a <u>real</u> asset, inventory.

As already mentioned, cash is a financial asset. Inventory is a tangible substance with an inherent value not determined by a contract and so is a Physical Asset. Trading cash for Inventory is therefore trading a financial asset for a physical one.

3 0
3 years ago
Explain how government actions affect a circular flow model of a mixed economy.
vekshin1

A circular flow economy includes buying and selling between businesses, households, and governments.

The government takes money in through taxes and tariffs, and has expenditures on things like roads, military spending, and other federally funded programs. In this way the government both gives and takes in the economy.

3 0
3 years ago
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