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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.

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Jerome's Italian Pizza is in a very competitive industry, and its upper management believes that it can achieve higher profits b
Troyanec [42]

Answer:

That statement is true

Explanation:

Strategic goal is the type of goal that is carefully designed to accomplish a business strategy, This type of goals need to express the desired outcome that wanted be achieved and listed a specific set of actions that can make the company achieve that outcome. Strategic goal commonly created when a company want a more concrete way to measure its success compared to other competitors.

This can be seen in Jerome's italian pizza.

"Increase profits by 15% a year for each of the next five years" is  what considered to be the desired outcome.

lowering costs and prices, providing quicker delivery, and providing good customer service are the Sets of action that the company intended to take.

3 0
3 years ago
Marigold Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 96000 subs
ANEK [815]

Answer:

Dr Cash $1,920,000

Cr Unearned Subscription Revenue $1,920,000

Explanation:

Since The magazine sells 96,000 subscriptions in January at the amount of $20 each which means that the appropriate journal entry that made in January to record the sale of the subscriptions will be

Dr Cash $1,920,000

Cr Unearned Subscription Revenue $1,920,000

(96000*$20)

(To record the sale of the subscriptions)

4 0
3 years ago
If the shadow price for a resource is 0 (the allowable increase is 1000) and 150 units of the resource are added what happens to
ser-zykov [4K]

Answer:

The answer is "No change"

Explanation:

The optimal solution is a feasible alternative where the optimal solution reaches its highest (or lowest) values, including most profit and the price is lower. There is no other viable solution with an objective function that is universally ideal. Whenever the resource regression coefficient is 0, the best solution would not be changed.

5 0
3 years ago
The exchange rate is the price of one country’s currency compared to another country’s currency. True or false?.
Murljashka [212]

Answer:

True

Explanation:

Exchange rates vary through out different currencies ,controlled by different states .

The US dollar is the universal factor across all global currencies .Some may be higher while others may be lower but the USD is like the  unit of comparison .

It is regulated by the federal reserve and is usually backed by credit .Money has taken dramatic twists , when it comes to backing as it has been backed by gold and oil before hence shifting from time to time .So the US discovered to gap which was filled by credit systems that oversee the flow of bills in relations to credit .

5 0
2 years ago
Which statement best describes how inflation affects the value of investments over time?
ad-work [718]
B it increases the value of money
8 0
2 years ago
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