Answer:
b) help stop bank failures throughout the United States.
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 them being scared or afraid the depository institution will run out of cash (bankruptcy) and become insolvent.
The Federal Deposit Insurance Corporation which is also generally referred to as the FDIC was a New Deal program introduced by President Franklin D. Roosevelt in 1933 and it was designed to prevent bank failures or bank runs and restore the public's faith in the banking system.
Hence, the Federal Deposit Insurance Corporation (FDIC) was established on the 16th of June, 1933 so as to counter or mitigate the problem with bank runs.
Generally, the income generated from the premium payments of insured banks is used to fund or finance the Federal Deposit Insurance Corporation (FDIC).
Additionally, 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.
In conclusion, the Federal Deposit Insurance Corporation (FDIC) was established in 1933, during the Great Depression, to help stop bank failures throughout the United States.
Answer:
the value of the stock is $21
Explanation:
The computation of the value of the stock is given below:
= Annual dividend per share ÷ required rate of return
= $2.10 ÷ 10%
= $21
Hence, the value of the stock is $21
We simply divided the annual dividend from the required rate of return so that the value of the stock could come
Answer:
The increase in savings resulting directly from this change in income is $500
The marginal propensity to save (MPS) is 0.25
Explanation:
In order to calculate The increase in savings resulting directly from this change in income we would have to make the following calculation:
increase in savings resulting directly from this change in income= increase in income - increase in consumption
increase in savings resulting directly from this change in income= $2,000 - $1,500
increase in savings resulting directly from this change in income=$500
The Marginal propensity to save = increase in savings/increase in income =
Marginal propensity to save = $500/$2.000
Marginal propensity to save =0.25
