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Blizzard [7]
3 years ago
11

During the financial crisis of 2007-2008, the Fed engaged in lending to certain large non-bank financial firms in the private se

ctor.
Which of the statements describes the reasoning behind the Fed's decision to engage in this type of non-traditional lending?

a) The Fed wanted to make a higher than normal return on their investment.
b) The Fed wanted to limit the interest rate risk inherent among financial institutions.
c) The Fed wanted to limit the systemic risk inherent among financial institutions.
d) The Fed wanted to limit the inflation risk inherent among financial institutions.
Business
2 answers:
Delvig [45]3 years ago
6 0

Answer: D. The Fed wanted to limit the inflation risk inherent among financial institutions.

Explanation: An alternative lender, or non-traditional lender, is a loan provider, often a short-term loan lender that is often not heavily regulated by state or federal agencies. ... Secured loans typically have lower interest rates than unsecured non-traditional loans because they minimize the lender's risk of loss.

borishaifa [10]3 years ago
6 0

Answer:

b) The Fed wanted to limit the interest rate risk inherent among financial institutions.

Explanation:

Financial crisis occurs when values of financial institution or assets drop rapidly, which often coincides with stock market crashes, investor asset withdrawal and banking panics. There is always a recession after financial crisis because of the drop in asset value.

The 2007-2008 financial crisis was caused by the deregulation of the financial sector that permits banks to engage in hedge fund trading with derivatives. To solve the financial crisis, the Fed deployed a variety of strategies and tactics to coax rates downward to stimulate the economy, some of the strategies employed by the Fed were:

i)  Interest rate cuts

ii) Targeted assistance to ailing financial institutions

iii) Quantitative easing (or Large-Scale Asset Purchases)

iv) Forward guidance about interest rates

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nignag [31]
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In a parallel test, same input will be entered in two different version of simulation.  By doing this, we could create multiple simulations to test several possibilities and reducing the total time needed at the same time. The downside is that this test exposes the tester to a high risk of making a mistake.</span>
7 0
3 years ago
Which of the following is not one of the conditions that make it more likely that firms will be able to coordinate their efforts
tatyana61 [14]

Answer:

The condition that make its difficult for firms to coordinate their efforts to control output quotas and pin point cheating is A) when market demand tends to be more volatile.

Explanation:

All the options except A will make it difficult for firms to control output quotas and detect cheating. From reading the options B,C and D it is quite clear that in the market there is a presence of cartel ( which can be defined as a association of producers in an industry who comes together to set the prices and output quotas ) but even if there is presence of cartel in industry, the efforts to restrain output will fail if the demand of the products and services in volatile in the market, it would become difficult for them to pin point where the cheating has taken place.

3 0
4 years ago
Match each description 1 through 6 with the characteristic of preferred stock that it best describes by writing the letter of th
artcher [175]

Answer and Explanation:

The classification is as follows

a. In the callable, the corporation who issued could retired the stock by payoff the mentioned price

b. In the convertible, the stockholders could able to exchange for the common stock shares

c. In the cumulative, the stockholders should received the current as well as the past dividends prior to the common stockholders

d. In the non-cumulative, the stockholders should lose the dividend that not declared in the present year

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7 0
3 years ago
According to Liden et al., the three main components of the servant leadership model are ______.
xxTIMURxx [149]

Answer:

The correct answer is letter "A": servant leader behaviors, antecedent conditions, leadership outcomes.

Explanation:

Liden et al. (<em>2008</em>) proposed a leadership model based in three characteristics: <em>servant leader behaviors,</em> which takes place when the leader puts the follower first to empower them; <em>the antecedent conditions</em> that are the factors that influence servant leadership; and <em>the leadership outcomes</em> or the results the leaders obtain thanks to their working method.

6 0
4 years ago
Adkins Company is hired on December​ 15, 2018 to perform​ services, beginning on December​ 16, 2018. Under this​ agreement, Adki
Leno4ka [110]

Answer:

$2,000

Explanation:

The amount which is to be recorded for the service revenue for the month of the December 2018 is computed as:

Service revenue = Monthly Salary / Number of days in the month of December × Number of days from being hired

where

Monthly salary is $4,000

Number of days in the month of December is 30 days

Number of days from being hired is 15 days (From 15 December to 30 December)

Service revenue = $4,000 / 30 days × 15 days

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Service revenue = $1999.95 or $2,000

Therefore, the service revenue for the month of December amounts to $2,000.

3 0
3 years ago
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