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3 years ago

Which of the following solutions have been proposed to solve the too-big-to-fail problem?

Business

1 answer:

Tresset [83]3 years ago

4 0

Answer:

D) All of the above have been proposed

Explanation:

The problem with the too big to fail financial policy is that financial institutions that are considered too big started to assume greater investment risks since they were treated differently than other not too big banks.

For example, if the FDIC decides that a too big to fail bank is about to fail, they will use the purchase and assumption method to ensure that the bank's depositors don't suffer losses, but the government assumes the losses and the government is paid by all of us.

The Dodd-Frank Act makes it harder for the Federal Reserve to bail out financial institutions, but that is simply not enough. Big banks have played enough with the taxpayers' money and should be held responsible for their actions. They at like spoiled children that go around breaking things because their parents will pay for them.

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How does earned income, like wages, differ from unearned income, like interest or rental

Gemiola [76]

Answer:

Your tax liability is based on your overall income, so it's important to understand the different types of income and how the IRS treats them. Earned income and unearned income each include diverse forms of payments and have unique tax implications.

Explanation: Hope this helps <3

6 0

3 years ago

A manager of Paris manufacturing which produces computer hard drives, is planning to lease a new automated inspection system. Th

3241004551 [841]

Answer:

Paris Manufacturing

1. Based on cost considerations, the new inspection system should not be leased.

2. Based on cost considerations, the manufacturer should accept the NEW-SPEC offer.

Explanation:

a) Data and Calculations:

Annual demand for computer hard drives = 8,000 units

Current manual inspection system:

annual fixed cost = $35,000

Inspection variable cost per unit = $15 per unit.

Total cost for manual inspection system:

Variable costs $120,000 (8,000 * $15)

Fixed costs 35,000

Total costs $155,000

New automated inspection system:

Annual fixed cost = $165,000

Inspection variable cost per unit = $0.55 per unit

Total cost for automated inspection system:

Variable costs $4,400 (8,000 * $0.55)

Fixed costs 165,000

Total costs $169,400

Total cost with NEW-SPEC:

Variable costs $152,000 (8,000 * $19)

b) The improved efficiency will surely outrun the cost of the new automated inspection system. Therefore, I recommend that Paris should go ahead with the new system, despite the costs. Accepting the offer from NEW-SPEC provides the best financial efficiency. However, in the long-run, purchasing the automated inspection system might prove to be the best decision.

7 0

3 years ago

Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the explicit costs of her business are

Alisiya [41]

Answer:

The answer is $47,000

Explanation:

Accounting profit profit doesn't consider opportunity cost. So the value for opportunity cost will be left out. It is Economic profit that considers opportunity cost.

Accounting profit = revenue - cost(explicit cost which is all cost involved in directly running the business e.g cost of sales, electricity cost, wage etc.)

Revenue = $64,000

Explicit cost = $17,000

Therefore, Accounting profit is

$64,000 - $17,000

=$47,000

8 0

3 years ago

The ____ button assigns a fixed dollar sign to the numbers in a selected range, with the dollar sign to the far left with spaces

Sholpan [36]

Answer:

Accounting number format.

Explanation:

5 0

3 years ago

Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Rou

Inessa05 [86]

a. The present value of $300 per year for 16 years at 6% is $3,031.77.

It is calculated using an online finance calculator as follows:

N (# of periods) = 16 years

I/Y (Interest per year) 6%

PMT (Periodic Payment) = 300

FV (Future Value) = $0

Results:

PV = $3,031.77

Sum of all periodic payments = $4,800.00

Total Interest $1,768.23

b. The present value of $150 per year for 8 years at 3% is $1,052.95.

It is calculated using an online finance calculator as follows:

(# of periods) = 8 years

I/Y (Interest per year) = 3%

PMT (Periodic Payment) = $150

FV (Future Value) = $0

Results:

PV = $1,052.95

Sum of all periodic payments = $1,200.00

Total Interest = $147.05

c. The present value of $700 per year for 8 years at 0% is $5,600.00.

It is calculated using an online finance calculator as follows:

N (# of periods) = 8 years

I/Y (Interest per year) = 0%

PMT (Periodic Payment) = $700

FV (Future Value) = $0

Results

PV = $5,600.00

Sum of all periodic payments = $5,600.00

d. The present value of $300 per year for 16 years at 6% as an annuity due is $3,213.67.

It is calculated using an online finance calculator as follows:

N (# of periods) = 16 years

I/Y (Interest per year) 6%

PMT (Periodic Payment) = 300

FV (Future Value) = $0

Results:

PV = $3,213.67

Sum of all periodic payments = $4,800.00

Total Interest = $1,586.33

e. The present value of $150 per year for 8 years at 3% as an annuity due is $1,084.54.

It is calculated using an online finance calculator as follows:

(# of periods) = 8 years

I/Y (Interest per year) = 3%

PMT (Periodic Payment) = $150

FV (Future Value) = $0

Results:

PV = $1,084.54

Sum of all periodic payments = $1,200.00

Total Interest = $115.46

f. The present value of $700 per year for 8 years at 0% as an annuity due is $5,600.

It is calculated using an online finance calculator as follows:

N (# of periods) = 8 years

I/Y (Interest per year) = 0%

PMT (Periodic Payment) = $700

FV (Future Value) = $0

Results

PV = $5,600.00

Sum of all periodic payments = $5,600.00

<h3>What is the difference between an ordinary annuity and an annuity due?</h3>

An ordinary annuity involves regular payments made <u>at the end</u> of each period, while an annuity due involves payments are made at the <u>beginning</u> of each period. For example, consistent quarterly stock dividends are an ordinary annuity just as monthly rent is an annuity due.

<h3>Data and Calculations:</h3>

a. $300 per year for 16 years at 6%

b. $150 per year for 8 years at 3%

c. $700 per year for 8 years at 0%

d. Present value of $300 per year for 16 years at 6%

e. Present value of $150 per year for 8 years at 3%

f. Present value of $700 per year for 8 years at 0%

Learn more about annuity at brainly.com/question/25792915

6 0

2 years ago