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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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Whenever Josh goes to his favorite restaurant, he wants to buy tiramisu, his favorite dessert. Despite the fact he would enjoy t
slamgirl [31]

Answer:

C. framing effects

Explanation:

Based on the information provided within the question it can be said that the behavioral economists would say that Josh's decision is affected by framing effects. This term refers to a cognitive bias where people tend to base their choices of different options based on the positive or negative connotations presented. Which is what Josh is doing by basing his decision on who else is having desert.

4 0
3 years ago
Your grandparents would like to establish a trust fund that will pay you and your heirs $225,000 per year forever with the first
xz_007 [3.2K]

Answer:

They must deposit $5,113,636.36.

Explanation:

Giving the following information:

Cash flow= $225,000

Interest rate= 4.4 percent

To determine the amount to be deposited today, we need to use the perpetual annuity formula:

PV= Cf/i

Cf= cash flow

PV= 225,000/0.044

PV= $5,113,636.36

They must deposit $5,113,636.36.

3 0
3 years ago
Proper ventilation in the kitchen is important for employee safety and comfort. the most important thing employees can do in rel
FinnZ [79.3K]
<span>It is essential that they make sure that the hoods are kept clean to ensure that they are acting properly. The point of the hoods is to clear out the air and draw out any smoke, steam, or whatever else is in the air. If they are not clean, then they cannot filter the air to keep it clean, which will pose a risk to the workers' health.</span>
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4 years ago
Which of the following is a document of title under Article 7 of the UCC?
Salsk061 [2.6K]
The answer is B, Bill of Lading.
7 0
2 years ago
Adams, a general contractor, Brinks, an architect, and Carson, an interior decorator, formed the Dex Home Improvement General Pa
True [87]

Answer:

8,000

Explanation:

Calculation to determine what Brinks' initial basis in Dex is:

Carryover Basis of Land Contributed by Brinks $12,000

Less Mortgage Assumed by the Partnership ($5,000)

Add Mortgage percentage Kept by Brinks $1,000

(.20 x $5,000)

Brink's Initial Basis $ 8,000

($12,000-$5,000+$1,000)

Therefore Brinks' initial basis in Dex is: $8,000

3 0
3 years ago
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