The Catholic Church dominated in Europe for several centuries through a complex political and social system that was based in the religious belief that the Church was a divine institution above every earthly power. The Church worked as a network of churches disseminated across the continent, where the local priests took the confession of the people, from commoners to feudal lords. Hence, the Church knew most of the secrets and feelings of every level of the society, knowledge they used to exercise control. Also, since the Pope was seen as the highest spiritual authority, he named bishops that influenced directly on the kings and princes of the different kingdoms of Europe. Other methods the Church used to control the population was fear of hell, shame, and guiltiness. These feelings were spread through the use of institutionalized torture and persecution of heretics (people who didn't agree with the Chruch), like the Holy Inquisition.
When capital adequacy line is equal to the savings per worker function then "normal expected returns to investor".
<h3>What is
capital adequacy/requirement ratio?</h3>
The capital adequacy ratio (CAR) gauges a bank's level of capital retention in relation to its level of risk. The CAR of banks must be monitored by national regulators in order to ascertain how well it can withstand an acceptable amount of loss.
The components of capital adequacy are-
- The Capital Adequacy Ratio (CAR) aims to ensure that banks have an adequate amount of capital to safeguard depositors' funds.
- (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets is the calculation for CAR.
- The BIS's capital standards have tightened up in recent years.
- By reducing the likelihood of bank insolvency, capital adequacy ratios promote the effectiveness and stability of a country's financial system.
- A bank with a high capital adequacy ratio is typically thought to be secure and likely to fulfill its financial obligations.
The principle of capital adequacy are-
- High-quality and loss-absorbing capital are both necessary.
- The Basel III criteria for common stock, along with supplementary tier 1 and tier 2 capital, are applied to establish the quality of capital, with retained earnings being the most important factor.
To know more about the capital requirement, here
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You have to pay taxes abide laws and pay taxes
The one all the way at the bottom- 1 the one above it- 2 the one below the first one-3
The one above that one- 5 and the one below 3 is 4. You know what- just use the link.