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liberstina [14]
3 years ago
9

The government's too-big-to-fail policy applies to: Group of answer choices large corporate payroll accounts held by some banks

where many people would lose their income. large banks whose failure would start a widespread panic in the financial system. banks that have branches in more than two states. certain highly populated states where a bank run impacts a large percent of the total population.
Business
1 answer:
gtnhenbr [62]3 years ago
3 0

Answer:

large banks whose failure would start a widespread panic in the financial system.

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.

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.

Hence, the government's too-big-to-fail policy applies to large banks whose failure would start a widespread panic in the financial system.

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Indicate what components of GDP (if any) each of the following transactions would affect. a. Your parents buy a new house from a
Ira Lisetskai [31]

Answer:

a. Consumption spending

b. consumption spending

c. government spending

d. investment

e. consumption and investment

f. consumption spending

g. not included in GDP

Purchase of a Toshiba laptop is consumption spending

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.  

Items not included in the calculation off GDP includes:  

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used or old products

5. sale or purchase of intermediate products

Consumption spending includes expenditures by households on durable and non durable goods and services

the following are durable consumption by households and are included in the calculation of GDP :

Purchase of a house

Purchase of a mustang

Purchase of an air conditioner

purchase of a  computer

the purchase of the old Victorian house isn't included in the calculation of GDP because it is old. Only items produced in the current year are included in the GDP. if the old home is counted, it would be double counting

hiring an accountant is an example of purchase of services by households and it is consumption spending.

Spending by businesses are included in investment spending.

expenditure by the government or state are included in government spending

4 0
3 years ago
Pronghorn Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures we
Leokris [45]

Answer:

The interest rate for capitalization purposes will be of 11%

Explanation:

The company will average all the debt oustanding during the year

1,050,550  x 13%   =     136,571.5

2,080,800 x 10%   =   208,080

<u>3, 831,200</u>  x  11%   = <u>  421, 432  </u>

6,962,550‬                 766,083.5

a debt of 6,962,550 dollars generates 766,083.5 dollars of interest:

principal x rate = interest

rate = interest / principal

766,083.5 / 6,962,550 = 0,110029 = 11%

4 0
3 years ago
What is the beta of msft? [hint: look under "key statistics"]. if the risk-free rate (rf) is 5% and the market risk premium e[rm
pshichka [43]
<span>Answer: The beta of MSFT is 1.05. The security market line of the CAPM tells us that the required rate of return is given by: E [ R MSFT ] = R f + β MSFT ( E [ R M - R f ]) = . 04 + 1 . 05 × . 06 = 10 . 3%</span>
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3 years ago
Drag each label to the correct location on the table.
Tresset [83]

Answer:

The explanation of this question is given below in the explanation section.

Explanation:

In this question, two different scenerios are given regarding two different economic theory. First, we will know that what is Keynes and Hayek economic theory and then do drag the label to correct situation.

Keynes's economic theory

This theory says the government should increase demand to boost growth. Keynesians believe consumer demand is the primary driving force in an economy. As a result, the theory supports expansionary fiscal policy. Its main tools are government spending on infrastructure, unemployment benefits, and education. A drawback is that overdoing Keynesian policies increases inflation.

Hayek's economic theory

This thoery says that how changing prices relay information that helps people determine their plans is widely regarded as an important milestone achievement in economics

Hayek says that markets will heal themselves and that government should not intervene. Keynes says that governments should intervene in order to soften the blow of a depression/recession.

So, the correct labels for these scenerios are:

Keynes:

A small Caribbean island's economy depends  on tourism. However, in recent times, it has seen  much less economic activity. Its government decides  to let the market correct the situation.

Hayek:

Flour prices have risen in a country where bread is a  staple part of the diet. As a result, bread prices have  risen tremendously. In an effort to make bread affordable  for its citizens, the government has limited how much

bakers can charge for bread.

4 0
3 years ago
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How does the effectiveness of the team members influence the group's development process?
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Team effectiveness can be judged by measuring the gainful yield of the group. On the off chance that a person on the group is not investing the exertion the improvement procedure can be longer. A gathering turns into a group when the accompanying criteria are met: Leadership turns into a common movement, Accountability shifts from entirely individual to both individual and group, The gathering builds up its own motivation or mission, Problem-fathoming turns into a lifestyle, not low maintenance action, Effectiveness is measured by the gathering's aggregate results and items. In light of contentions because of force, expert, and temperamental interpersonal connections, many works gathers never qualify as a genuine group.
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3 years ago
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