World War II. Hitler got Germany citizen's attention, promising that he will normalize the economy and bring back the lands that were taken by the winners. Even though Germany was not supposed to have an army over 100,000 soldiers, Hitler ignored the rules and just went on to start World War II, which killed 70-85 million people for the soldiers and about 55 million civilians.
The correct answer is - D) It has contributed to a negative balance of trade.
The decreasing demand for US exports has had a negative effect on the trade deficit. This kind of situation results in an ever growing imbalance of trade, as the home made products are becoming less demanded, while the importing of goods and products is increasing, constantly making the trade deficit bigger.
That can eventually lead to an economic collapse, economic crisis similar to the Great Depression, as the country will not be able to work in that way forever. The GDP, both the nominal and the per capita, will suffer because of that, which will cause lot of unrest and opposition from the general public.
When capital adequacy line is equal to the savings per worker function then "normal expected returns to investor".
<h3>What is
capital adequacy/requirement ratio?</h3>
The capital adequacy ratio (CAR) gauges a bank's level of capital retention in relation to its level of risk. The CAR of banks must be monitored by national regulators in order to ascertain how well it can withstand an acceptable amount of loss.
The components of capital adequacy are-
- The Capital Adequacy Ratio (CAR) aims to ensure that banks have an adequate amount of capital to safeguard depositors' funds.
- (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets is the calculation for CAR.
- The BIS's capital standards have tightened up in recent years.
- By reducing the likelihood of bank insolvency, capital adequacy ratios promote the effectiveness and stability of a country's financial system.
- A bank with a high capital adequacy ratio is typically thought to be secure and likely to fulfill its financial obligations.
The principle of capital adequacy are-
- High-quality and loss-absorbing capital are both necessary.
- The Basel III criteria for common stock, along with supplementary tier 1 and tier 2 capital, are applied to establish the quality of capital, with retained earnings being the most important factor.
To know more about the capital requirement, here
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Here is information that will help you to answer this question on your own.
1) Author- Taking into consideration the author of the website is a way to determine bias. For example, if the website/article is created by a person who is a well known advocate for a specific political party, you can assume that they have a bias.
2) Sources- The sources that a website uses are critical to determine whether or not it is bias. If the website only cites other sources with a similar view, you can assume their is some bias.
3) Source of funding- If a website is sponsored by an organization, there is most likely bias. This is because without funding, many websites would not exist.
