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defon
3 years ago
10

Suppose that as a result of a housing price​ decline, the value of the​ bank's securitized assets falls by an uncertain​ amount,

so that these assets are now worth somewhere between 25 and 45. Call the securitized assets​ "troubled assets." The value of the other assets remains at 50. As a result of the uncertainty about the value of the​ bank's assets, lenders are reluctant to provide any​ short-term credit to the bank.
Business
1 answer:
neonofarm [45]3 years ago
4 0

Answer:

<em>Recapitalization will be a better policy than buying the troubles assets because, buying troubled assets will at most case provide a bank liquidity  but not necessarily a positive capital.</em>

Explanation:

<em>From the question, we recall the following,</em>

<em>The firm has three assets which are 50 of untroubled assets, 25 of troubled assets and 25 of treasury bonds</em>

The Securitized assets will be now 50-25= 25

The value other assets will remain at= 50

The Treasury bonds will be 50-25=25

The Short term credit will remain at= 80

The Capital will be =20  

Securitized assets. 25. Short term credit 80

Other assets.=50 and capital= 20

The Treasury bonds=25

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<h3 /><h3>Who is a farmer?</h3>

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The farmers would have wells and tube well on the farm because the irrigation to be much at a higher level with water reduces the water level of the ground to a significant amount which would in the future affect the soil plantation as well the soil binding capacities

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A decrease in agriculture output

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Alenkinab [10]
Hello!

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6 0
3 years ago
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IgorLugansk [536]

Answer:

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3 years ago
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Ahat [919]

Answer:

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3 years ago
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Answer: Option A is the right answer

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