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Likurg_2 [28]
3 years ago
6

The Capital Purchase Program carried out under TARP represented an attempt by the federal government to increase the capital of

banks. Why would the federal government consider it important to increase bank​ capital? A. To keep banks with falling asset values solvent. B. To keep attracting new clients. C. To raise​ banks' profits. D. To keep inflation low. What might be some of the consequences of banks having insufficient​ capital? A. High profits. B. Insolvency.   C. Low profits. D. A wide range of clients.
Business
1 answer:
4vir4ik [10]3 years ago
7 0

Answer:

A. To keep banks with falling asset values solvent.

Explanation:

When a bank is failing it will result in loss of funds not only for the bank but also for customers that have accounts in these banks.

If a bank eventually closes operations as a result of insolvency, they will not be able to pay off the customers. That is where the deposit insurance comes in to settle customers.

The government will have to spend a lot of money reimbursing customers their money.

To avoid this the federal government ensures the capital of banks is maintained to keep banks with falling asset values solvent.

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Compute the two-year nominal interest rate using the exact formula and the approximation formula for each set of assumptions lis
gregori [183]

Answer:

a) 2.5%

b) 6%

c) 3.5%

Explanation:

The Formula to be used is the <em>habitat hypothesis </em>

as stated in the document attached below

a)  it = 2%; it+1 =3%

i_{2,t} = 0 + ( 2 + 3 ) / 2

    = 2.5% ( two year nominal interest rate )

b) it = 2%;  it+1+1 = 10%

i_{2,t} = 0 + ( 2 + 10 ) / 2

     = 6% ( two year nominal interest rate )

c) it = 2%;  1t+1 = 3%. ∝₂,t = 1%

i_{2,t}  = 1 + ( 2 + 3 ) / 2

     = 1 + 2.5 = 3.5%

8 0
2 years ago
When workers are not motivated to achieve organizational goals, the fault is often with the workers themselves. true false?
qaws [65]
False it may be from the organization itself they might try rewarding the worker for example a company might take the workers to expensive workshops or to a trip as a type of reward or giving them a bonus to their salaries or a health insurance or a simple thing like involving them in a decision this may motivate the worker and make them feel part of the company   <span />
3 0
3 years ago
The following information is related to Dickinson Company for 2017.
MakcuM [25]

The answer & explanation for this question is given in the attachment below.

3 0
3 years ago
Consider two straight-line PPFs. They have the same vertical intercept, but curve I is flatter than curve II. The opportunity co
Fynjy0 [20]

Answer:

c) is the same along both curves.

Explanation:

Two straight-line PPFs have the same vertical intercept, but curve I is flatter than curve II. The opportunity cost of producing the good on the horizontal axis is the same along both curves.

3 0
3 years ago
Suppose there are 1000 firms in a market and all are identical. Firm A will hire 20 workers when the wage rate is $10, 25 worker
Triss [41]

Answer:

d. the quantity demanded for the market will increase to less than 30,000 workers.

Explanation:

Missing options:

  • a. the quantity demanded for the market will increase to 30,000 workers.
  • b. the quantity demanded for the market will increase to more than 30,000 workers.
  • c. the quantity demanded for the market will increase, but we can't tell which of the above answers is correct.
  • d. the quantity demanded for the market will increase to less than 30,000 workers.

maximum total demand for labor = 30 (at $8) x 1,000 firms = 30,000 workers, but since the equilibrium rate had been $9 for many years, some workers have already been hired at $9, and it is usually very difficult to lower someone's wage once they have been working. Even thought the quantity demanded will increase, it will probably not be able to reach 30,000 workers.

6 0
3 years ago
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