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DochEvi [55]
3 years ago
10

After Xavier and Alyssa deposited nearly $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy.

Because the Bigbux was an FDIC member bank, Xavier and Alyssa:_______
Business
2 answers:
astraxan [27]3 years ago
6 0

Answer:

Should be okay because their account is fully insured by the FDIC

Explanation:

The Federal Deposit Insurance Corporation (FDIC) is an agency that was formed to protect depositors of US depository organisations.

They provide a standard deposit insurance amount of $250,000 per account for each insured bank and for each account ownership category.

So for example if a client owns multiple savings accounts there will be coverage of $250,000 for all accounts in this category.

In this scenario Xavier and Alyssa are covered because their account balance is below $250,000.

krok68 [10]3 years ago
3 0

Answer: should be protected due to the fact that their account is insured by FDIC.

Explanation:

From the question, we are informed that after Xavier and Alyssa deposited nearly $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy but that the Bigbux was an FDIC member bank.

Based on the above scenario, Xavier and Alyssa should be protected due to the fact that their account is insured by FDIC. Since the bank is insured, their money is safe.

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The board of directors of pilgrim company authorizes a $100,000 restriction of retained earnings for a future plant expansion. t
Yakvenalex [24]

Answer:

It will reduce the amount of dividiends it can pay.

Explanation:

As there is an amount of the retained earnings that is restricted the company cannot use them to pay up neither stock or cash dividends in the future.

The retained earnings are used to pay dividends but also, are part of the equity of the firm thus the RE count to the capital structure of the company . Loans can be obtained with better rates if thecapital structure is more based on equiy than in liabilities thus, the board of directors is planning ahead the future plant exansion avoiding to use cash and deteriorate his capital structure to pay up dividends.

6 0
3 years ago
Why do most economists believe that it is important for a country’s central bank be independent of the rest of the country’s cen
ohaa [14]

Answer:

For economists is important to avoid political interferance in the monetary policy. Populist governments often use the creation of money to justify their political programs, causing inflation and distortions on the market.

In the last report of FOMC is highlighted the behaviour of market labour and the lower expectations of inflation.

Explanation:

There are two tools commonly used in political economy to finance government programs: taxation and paper currency print. When the central bank is not independent, the government has an incentive to print money to fund their programs, causing inflation. In economic science has been demonstrated that inflation is always caused by monetary phenomena.

5 0
2 years ago
Stellar Enterprises made the following entry on December 31, 2020. Interest Expense 6,490 Interest Payable 6,490 (To record inte
cupoosta [38]

Answer:

Interest Receivable               6,490 debit

              Interest Revenue                6,490 credit

(To record interest revenue from Stellar Enterprises loan)

Explanation:

The banks accounting will reflect the  accrued interest as well. From their perpective, the interest are revenue as they are the lender of the loan.

It will recognize the interest revenue from the accounting period

and will declare the interest receivable for the same amount.

<u>From this we can deduct:</u>

the payable from one entity is a receivable for another entry.

the interest expense from one firm will be interest revenue for another.

7 0
3 years ago
If a for-profit firm that has paid out record bonuses to its executive every year while underfunding contributions to unionized
kondor19780726 [428]

Answer:

B. Take defensive strike action.

Explanation:

One of the functions of a trade union or labor union is to protect the interest of its members in a workplace. So, if a profit firm treats its workers poorly by underfunding contribution to workers pension as required under a collective agreement while paying out record bonuses to executives then attempts attempt to reduce workers pension entitlements, the union members will most likely embark on an industrial strike.

The aim of the strike is to halt daily operations of the firm until their demands are heard and an agreement is reached. The members of the union were treated unfairly by the firm by not honoring their pension funding agreement and to make matters worse the decided to try and reduce the workers pension.

If the members don't embark on the industrial strike, the firm would reduce their pension benefits. The most likely action of the union members would be to embark on a defensive strike action to protect themselves.

7 0
2 years ago
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the proces
sergey [27]

Answer:

The expected return and beta on the portfolio be after the purchase of the Alpha stock will be 11.20%; 1.23

Explanation:

Provided data;

90000 value portfolio with expected returns of 11% and beta of 1.20

($10 × 1000) = 10000 value Alpha Corp added with expected returns of 13% and beta of 1.50.

The new expected portfolio return =

rp = 0.1 × 13% + 0.9 × 11%

rp = 0.1 × 0.13 + 0.9 × 0.11

= 11.20%

The new expected portfolio beta =

bp = 0.1 × 1.50 + 0.9 × 1.20

bp = 1.23

7 0
3 years ago
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