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3 years ago

The Federal Deposit Insurance Corporation was established in 1933, during the Great Depression, to:_________

Business

1 answer:

ICE Princess25 [194]3 years ago

7 0

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.

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Assume a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is 5 units of output

Arada [10]

Answer:

A) the firm should hire additional workers.

Explanation:

if the marginal production of the tenth worker is 5 units or output and the price of each unit is $4, the the workers total marginal product revenue (MPR) = 5 units x $4 per unit = $20

Since the cost of hiring that tenth worker is $15 (less than MPR), then the company should hire more additional workers until the MRP = labor cost

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4 years ago

The total market value of the equity of ITM is $6 million, and the total value of its debt is $4

timofeeve [1]

Answer:

a. The required rate of return on Okefenokee stock is 16%.

b. WACC = 10.56%.

c. Estimate the discount rate for an expansion of the company's present business.

It should be the same as the WACC = 10.56%

d. The required rate of return on Okefenokee's new venture is Ke = 18 %.

Explanation:

Here the given is,

E = $6 million, D = $4 million, Beta = 1.2,

Rmp = the expected risk premium on the market =10%.

Rf = The Treasury bill rate = 4%

a. The required rate of return on Okefenokee stock,

$Ke = Rf + Beta \times Rmp = 4 + 1.2 \times 10 = 16%$ %.

b. Tax rate, T = 40%

The proportion of debt = $Wd = D / (D + E) = 4 / (6 + 4) = 0.4$

Proportion of equity, We = 1 - Wd = 1 - 0.4 = 0.6

Cost of debt, Kd = Risk-free rate as debt is free of default = 4%

$WACC = Wd \times Kd \times (1 - T) + We\times Ke\\\\ = 0.4 \times4\times (1 - 40) + 0.6 \times 16\\\\ = 10.56%$

WACC = 10.56%.

c. Estimate the discount rate for an expansion of the company's present business.

It should be the same as the WACC = 10.56%

d. Suppose the company wants to diversify into the manufacture of rose-colored glasses. The beta of optical manufacturers with no debt outstanding is 1.4. What is the required rate of return on Okefenokee's new venture? (You should assume that the risky project will not enable the firm to issue an additional debt)

$Ke = Rf + Beta \times Rmp\\\\Ke = 4 + 1.4 \times 10 = 18%$

Ke = 18 %.

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3 years ago

Hector spent the last three months on a winter fishing boat in Alaska. He was doing research on population levels of fish for co

cupoosta [38]

Answer:

Explanation:

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3 years ago

Read 2 more answers

Consider a specific example of the special-interest effect. In 2012, it was estimated that the total value of all corn-productio

Molodets [167]

Answer:

A) $10 per person

B) $15000000

C) $30000000

D) $15000000

Explanation:

A) Cost of corn subsidies per person in the United States in 2012 = 3 billion/300 million = 3000000000/300000000 = $10 per person

B) We are told that 10 percent of 300 million population are those willing to provide funding. Thus;

Number of people providing funding = 10% × 300 million = 30,000,000

Each of these 30,000,000 people are willing to only provide $0.50.

Thus;

total funding raised for their lobbying efforts = $0.50 × 30,000,000

total funding raised for their lobbying efforts = $15000000

C) We are told that the recipients of corn subsidies donated just 1% of the total amount which they received via subsidies. Thus;

Amount raise to support lobbying efforts to continue the corn subsidy =

1% × $3 billion = $30000000

D). the difference between which the amount raised by the recipients of the corn subsidy exceeds that of the amount raised by the opponents of the corn subsidy = $30000000 - $15000000 = $15000000

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3 years ago

On november 1, gentle company received a $3,000, 6%, three-month note receivable. the cash to be received by gentle company when

adoni [48]

The answer is $3,045.

To solve:
Find first the interest.
Interest = Principal x Interest Rate x Time
I = $3000 * .06 * (90/360)
= $3000 * 0.015
= $45
$45 is the interest.

Add the interest to the principal to get the maturity value.
Maturity Value = Interest + Principal
MV = $45 + $3000
= $3045

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3 years ago