1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ladessa [460]
3 years ago
15

The problem with bank runs is not that ____________will fail; they are, after all, bankrupt and need to be shut down. The proble

m is that bank runs can cause __________ to fail and spread to the rest of the financial system.
Business
1 answer:
shusha [124]3 years ago
6 0

Answer:

Insolvent banks;Solvent banks.

Explanation:

A bank run can be defined as a situation where bank clients or depositors make withdrawals of their money simultaneously from banks as a result of being scared or afraid the depository institution will run out of cash (bankruptcy) and become insolvent.

The problem with bank runs is not that insolvent banks will fail; they are, after all, bankrupt and need to be shut down. The problem is that bank runs can cause solvent banks to fail and spread to the rest of the financial system.

In order to counter the problem with bank runs, the Federal Deposit Insurance Corporation (FDIC) was established on the 16th of June, 1933.

Furthermore, to avoid bank runs or other financial institutions from being insolvent, the Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to these institutions when they're running out of money and as well as regulate their activities.

You might be interested in
California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $35 per share. Later in the year, the compa
astraxan [27]

Answer:

The journal entry to record the purchase of treasury stock would be:

                           Debit ($) Credit ($)

Treasury Stock       3,800  

         Cash                   3,800

Explanation:

In order to prepare The journal entry to record the purchase of treasury stock we would have to calculate the treasury stock as follows:

Treasury Stock=shares purchased*cost per share

Treasury Stock=100 Shares x $38.00 per share

Treasury Stock=$3,800

Therefore, The journal entry to record the purchase of treasury stock would be:

                           Debit ($) Credit ($)

Treasury Stock       3,800  

         Cash                   3,800

3 0
3 years ago
Using advances in technology to maintain databases of customer information is more important for firms involved in mass marketin
astraxan [27]

Answer:

The statement is: False.

Explanation:

The difference between mass marketing and relationship marketing is that the first is used to attract large numbers of customers with a product that is not necessarily tailor-made for them. On the other hand, relationship marketing provides consumers with a good or service that matches their needs. Companies implementing this approach are likely to keep customers' information in a database to evaluate changes over time and to adapt to them.

Thus, maintaining databases thanks to the advance of technology is likely more useful for firms using relationship marketing.

4 0
3 years ago
Which of these is an example of the line marked "Artificial Price"?
Andreas93 [3]
As the question is incomplete and examples are not given here but in actual and complete question options are:
<span>Farm subsidies
Market price
Minimum wage
Rent controls
</span>And among these options, the correct option is "Farm subsidies".

Farm subsidies are viewed as a prime zone for spending reductions, yet are restricted by the effective homestead hall and individuals from Congress from agribusiness states.
8 0
3 years ago
Read 2 more answers
Based on what you have read, what is the opportunity
Crazy boy [7]

Answer:a higher quality item

Explanation:

A higher quality them

5 0
3 years ago
Mary, a student at a community college in New York, is in the United States on a student visa that allows her to remain in the U
aliina [53]

Answer:

It will be difficult for Mary to compare the crime rates in a U.S. city with her hometown of London, England:

b. There are differences in the way crime is measured.

Explanation:

  • The option a is not correct as it is not true that England doesn't have any crime statistics that are available to civilians.
  • The option b is correct as the ways of measuring crimes are different for different regions or places.
  • The option c is not correct as there is no dictatorship in England.
  • The option d is not correct as it is not true that only solved cases are included in England's crime rates.
3 0
3 years ago
Other questions:
  • "Our business needs a steady supply of raw milk," said Beatrice Gomez, CEO of Bea's Ice Cream, "But Holly Dairy Farms is unable
    9·1 answer
  • If an investment firm underwrites a stock issue, the
    11·1 answer
  • Shelly is looking at the life insurance policies listed in the table below. Which insurance company provides the most coverage p
    7·1 answer
  • What is the last step in creating a budget
    7·1 answer
  • Purchasing a car on a loan through the bank or dealership is called:
    7·1 answer
  • In Coronado Company, total materials costs are $38,000, and total conversion costs are $54,480. Equivalent units of production a
    8·1 answer
  • I need help
    14·1 answer
  • Gomez Company purchases a piece of equipment on Jan. 2, 2014, for $30,000. The equipment has an estimated life of eight years or
    14·1 answer
  • Which of the following is NOT a liability?
    10·2 answers
  • Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!