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2 years ago

What role did the federal reserve play in the banking crisis of 2008-2009

Business

1 answer:

svetlana [45]2 years ago

8 0

Question: What role did the federal reserve play in the banking crisis of 2008-2009?

Answer: The Federal Reserve acted to improve conditions in two vital markets that broke down during the panic in the fall of 2008: money market mutual funds and short-term lending to businesses. ... The Federal Reserve provided secured loans to institutions in these markets, ensuring that adequate funding was available.

Hope this helps, have a good day. c;

You might be interested in

Which of the following statements represent the appropriate directional relationships between the concepts of inherent risk, con

luda_lava [24]

Answer:

b. As inherent risk goes up, audit risk goes down.

Explanation:

Inherent risk is the risk which is present before applying any control, and audit risk is the that the auditor expresses inappropiate audit opinion when the financial statements are materialy misstated.

Thus, when the inherent risk is <em>high</em>, the auditor keeps the audit risk at <em>low </em>level to perform more subtantative procedures.

8 0

2 years ago

If Frank is researching the number of customers who have gluten or wheat allergies, and then he begins to devise a strategy to c

katrin2010 [14]

Frank is involved in planning if he researches the people that have wheat allergies and devises a way to cater to the people.

<h3>What is planning in business?</h3>

These are the strategies that are used in business where the manager would set objectives and goals for the company and then devise the ways that they would reach the goals they have set.

This is what Frank is doing here by setting up strategies to help cater for the individuals.

Read more on planning here:brainly.com/question/2486491

7 0

1 year ago

Blackstone Technology is planning to invest in some project using external equity. The company has a beta of 1.1. The return on

Salsk061 [2.6K]

Answer:

Cost of equity = 19.1 %

Explanation:

Cost of equity = required rate of return + flotation cost

The Capital assets pricing model would be used to determined the required rate of return

<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c </em>

Using the CAPM , the required rate of return is given as follows:

E(r)= Rf +β(Rm-Rf)

E(r) - required return

β- Beta

Rm- Return on market

Rf- Risk-free rate

DATA

E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%

E(r) = 3% + 1.1× (14% - 3%) = 15.1 %

Cost of equity = required rate of return + flotation cost

= 15.1 % + 4% = 19.1 %

Cost of equity = 19.1 %

7 0

2 years ago

Carla Vista Company purchases Sandhill Company for $2470000 cash on January 1, 2021. The book value of Sandhill Company’s net as

Nady [450]

Answer: $214000

Explanation:

The amount of goodwill that should be recognized by Carla Vista Company when recording the purchase of Sandhill Company will go thus:

Book value of net assets = $1923000

Add: Excess fair value of tangible asset = $190500

Add: Excess fair value of intangible assets = $142500

Fair value of net assets = $1923000 + $190500 + $142500 = $2256000

Therefore, Goodwill will be:

=Cash paid for purchase - Fair value of net assets

= $2470000 - $2256000

= $214000

3 0

2 years ago

Constable Co. reported the following information at December 31, Year 1: Accounts Payable $ 4,620 Accounts Receivable 9,470 Cash

avanturin [10]

Answer:

The total of the credit balance accounts is $117,260

Explanation:

In the classified balance sheet, we summarize the asset and liabilities into various types

Like assets are divided into fixed assets, current assets, and intangible assets.

Likewise, liabilities are also divided into current liabilities, long term liabilities

In every balance sheet, the accounting equation has used that means

Total assets = Total liabilities + Shareholder equity

The total assets have the debit balances whereas the total liabilities and the shareholder equity have the credit balances

So, The computation is shown below:

= Accounts Payable + Common Stock + Notes Payable + Retained Earnings + Wages Payable

= $4,620 + $91,200 + $2,620 + $14,210 + $4,610

= $117,260

6 0

2 years ago