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.
Answer:
a. 14.1%
Explanation:
Year 2
Net Profit Margin = Earnings Before Tax / Sales × 100
= $ 67,250 / $478,500 × 100
= 14.05 or 14.1 %
Answer:
A. Asset as cash will increase by $59,000, asset in equipment will increase $14,000
B. Asset side in increased and decreased
C. Asset and liability will increase by $11,000
D. Asset will increase
E. Asset will increase
F. Asset will increase and decrease by $5,800
G. Asset will decrease
H. Asset will increase
I. Liability will decrease
J. Asset and capital will decrease by $1,200
Explanation:
Accounting equation is Asset = Liabilities + Capital
Accounting equation is affected in business transaction. The transaction in business have different effects some transaction are like hybrid which impacts the multiple accounts balances. There are some transactions which just involve asset side transaction increase and decrease on the same account this will offset the balance and no effect on equation.
