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earnstyle [38]
3 years ago
10

Suppose that a bank has loaned money to two businesses: a trustworthy computer manufacturer and a risky mining venture. Unfortun

ately, the mining venture fails, and the mining firm goes bankrupt. The bank has no insurance for this situation. Now, on its balance sheet, the bank has more liabilities than assets. What is this situation called, and what is the result of this situation? Bank run. Depositors run on the bank to cash out before the bank runs out of money. Illiquidity. Shares of the bank are not traded as often on a stock exchange. Fire sale. The available assets of the bank are sold for pennies on the dollar. Insolvency. The bank cannot pay back depositors. Consumption. The money that was lost has no effect on the bank's operating status, but the firm's loss counts as part of GDP.
Business
1 answer:
SVETLANKA909090 [29]3 years ago
8 0

Answer:

The situation is called insolvency. insolvency is refer to the situation when debtor is unable return its debt.  The same is happened in the given situation. In the above case due to not paid by manufacturing unit, bank is unable to pay to depositor.

Insolvency is refer to that critical condition when debtor unable to pay amount to depositor. In the above given case even if bank want to sell its all assets it cannot cover its liabilities.Explanation:

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Which of the following file extensions indicates a template inside Microsoft word .dotx , .xlsx , .docx , .pptx ?
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.dotxis the the file extension that indicates a template inside microsoft.

4 0
3 years ago
When the activity level declines within the relevant range, what should happen with respect to the fixed cost per unit and varia
viktelen [127]

Answer:

The correct answer is option C.

Explanation:

The fixed costs are the cost that does not vary with the level of output. It does not vary with the level of activity. The total fixed cost remains constant in the entire production process.

The fixed cost per unit is the ratio of total fixed cost and level of output. It decreases as the output level increases and rises with a decline in activity.

The variable cost is the cost that is incurred on the variable inputs used in the production process. It directly varies with the volume of activity. The total variable cost will increase with the increase of output as more variable inputs are employed.

The variable cost per unit is the cost incurred on each unit of output. It does not change with the level of activity unless there is a change in input prices.

8 0
3 years ago
We sign two new customers out of every seven people with whom we speak. Our goal is to sign 120 new customers. How many people w
Mila [183]
420 is what I got. if you do two divided by 120 it gives you 60 then 60 times 7 is 420.
6 0
3 years ago
the safest action to take if someone claiming to be from your bank cause you to ask for account information is to? A: pull up th
wlad13 [49]
<span>The safest action to take if someone calls claiming to be from your bank to ask for account information is to ask the caller to hang up and call back using the bank's official phone number. Somene could have viewed part of your information from your card, stolen informaiton or elsewhere and is trying to get the rest of the information out of you. If you are unsure and do not trust where the source is calling from, always call them back through a secure number. </span>
7 0
4 years ago
Read 2 more answers
RST compay produces a product that has a variable cost of $6 per unit. The companys fixed costs are $30,000. the product sells f
Amiraneli [1.4K]

Answer:

7,500 units

Explanation:

The break-even point is the point in which the earnings and the costs are the same and there is no gain or loss. The formula to calculate the break-even point in units is:

Break-even point in units= Fixed Costs/(Sales price per unit – Variable costs per unit)

Now you have to replace the values given to find units that have to be produced to break even:

Break-even point in units=30,000/(10-6)

Break-even point in units=30,000/4

Break-even point in units=7,500

The answer is that the units that have to be produced to break even are 7,500.

7 0
4 years ago
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