This is what i found Answer 1
Risk-Adjusted Asset Base
The calculation of the risk-adjusted asset base for a bank is as below-
Risk-adjusted asset = (Cash × 0%) + (municipal security × 20%) + (home mortgages × 50%) + (Commercial loans × 100%)
= (20 × 0%) + (100 × 20%) + (500 × 50%) + (300$ × 100%)
= 0 + 20 + 250 + 300
= $570 million
The outcome shows that the risk-adjusted or weighted asset based for the bank will be $570 million.
Tier1 and Tier 2 Capital:
If the bank has no off-balance sheet activity then minimum required level of Tier 1 and Tier 2 capital will be-
Tier 1 capital = Risk-weighted asset × 4%
= $570 × 4%
= $22.8 million
Tier 2 capital = Maximum of 1.25% of risk-weighted asset
= $570 × 1.25%
= $7.125 million
Total capital = $22.8 + $7.125 => $29.925 million
The outcomes indicate that the minimum required level of Tier1 and Tier
2 capital is $22.8 million and $7.125 million for the bank.
Bank Comply with Capital Requirements:
If the bank has Tier 1 capital of $25 million and Tier 2 capital of $15
million then it will comply with its capital requirements of $29.925
million. It is because in this situation, total capital of bank is $37
million that is higher than the above calculated capital of $29.925
million.
Impact of off-Balance Sheet Activities on Capital Requirements
The addition of off-balance sheet activities might increase the capital
requirement of the bank. It is because an off-balance sheet items is a
financial contract that can create credit loss for the company due to
credit risk. So, in case of adding off-balance sheet activities, a bank
will require more capital to cover credit loss. Along with this, it can
also increase the minimum ratio of capital to risk-weighted assets from
8% and in that situation; the bank will need more capital (Carmichael
& Graham, 2012).
Answer 2
Probability of Repayment and Risk Premium
A).
If the rate on a one-year treasury bill is 6% and in case of loan
default, no payments are expected on financial securities then the
probability of repayment and the risk premium on 1 year AA-rated loan
yielding 9 percent will be-
Probability of Repayment:
The following formula can be useful to determine probability of repayment.
P = (1 + I) / (1 + k)
Where,
I = 6%
k = 9%
Then, ...you have $2.19 left :D
Answer:
1. Answer a customer's question
2.Take someone's order
3.Bring out an order of food
4 Cleae a table
5.Fold napkins
Answer:
Correct option is (a)
Explanation:
Any difference in the amount of par value of bond and the cost at which it was acquired. The organization can either choose to expense the discount or held the same as an asset that is amortized over the years till maturity of bond.
Unamortized discount is the amount that is not yet expensed. The same is reported on the balance sheet as a deduction from face value of bond.
Answer:
The correct answer is d. relatively smaller shortages in the short run than in the long run because supply and demand tend to be more inelastic in the short run than in the long run.
Explanation:
Rent control laws set limits on how much landlords can charge rent. The rent control laws specify:
- What types of properties qualify for rent control.
- How often rent limits can be adjusted.
- How rent limits can be adjusted. Most rent control laws link increases in rental limits to an annual percentage of inflation in a local consumer price index.
- The conditions when a property is "out of control."
- Restrictions on the eviction of the tenant with rent control.
There are no federal rent control laws since the US Supreme Court. UU. He ruled that rent regulation is a state issue. Most states do not have rent control laws regulated. Only some cities and communities in some states continue to apply them.
In the United States, rent control laws were adopted during World War II when the country was experiencing a housing shortage. President Richard Nixon then passed the wage and price laws that influenced the modern rent control laws that are still being applied today. This is why most rent control laws usually apply to older properties built before 1980.
If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30, the monopolist should increase production and lower the price to maximize profits decrease production and increase the price to maximize profits.
<h3>Who is a
monopolist?</h3>
monopolist serves as the entity that dominates a particular market in term of production, he is the one that has the highest control of the market and make the most profits.
It should be noted that If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30, the monopolist should increase production and lower the price to maximize profits decrease production .
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