Answer:
The explanation is given as follows.
Explanation:
<u>Task 1: </u>
<u>The higher the percentage of assets a bank holds as loans, the higher the capital requirement.</u>
When the owners of the bank borrow $100 to supplement their existing reserves , both reserves and debt increase by $100 , therefore increase in debt as in any balance sheet , the total value of accounts on the left hand should be equal to the right hand , so when there is increase in reserves , there will be increase in debt.
<u>Task 2:</u>
<u>It specifies a minimum leverage ratio for all banks
</u>
leverage ratio initially = total assets / capital = 1750 / 125 = 14
leverage ratio new value = total assets / capital = 1850 / 125 = 14.8 ( the assets increase by $100 with increase in reserves)
<u>Task 3</u>
<u>Its intended goal is to protect the interests of those who hold equity in the bank.</u>
Capital requirement are there to ensure that bank have enough capital to repay the depositors and debtors and if a bank holds a higher percent of risky assets , capital requirements will be higher so that the bank remains solvent hence option a is right answer.
Answer: Option A
Explanation: Determine priorities and set realistic goals
Answer:
b. risk management plan
Explanation:
this is true by definition, risk management involved forecasting risks, and laying out ways on how to manage them
- risk response plan is on how to reduce existing risks
- risk identification is to identify the risks of any open project
- risk balance plan is an analysis on how to maintain a balance on keeping safe and taking risks for greater benefit
Answer:
b. $72,000
Explanation:
Retained EarningEnding Balance = Opening Balance of retained earning + net income - Dividend Declared
Retained EarningEnding Balance = $44,000 + $48,000 - $20,000
Retained EarningEnding Balance = $44,000 + $48,000 - $20,000
Retained EarningEnding Balance = $72,000
The issue of common stock will not effect retained earning account balance It will be credited to common stock account and add-in-capital common stock account.
False, because it is "slightly" impossible to keep your running in the long run. A business should never stop it's marketing process. Yes, they can stop in the "very" short run, but in order to succeed more, they should do marketing occasionally. For example, every 2 weeks is the safest time to keep a routine to do marketing.
I hope it helped you!
