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2 years ago

Define bank run in your own words.

Business

1 answer:

lina2011 [118]2 years ago

5 0

Answer:

A bank run occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the bank's solvency. As more people withdraw their funds, the probability of default increases, prompting more people to withdraw their deposits.

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Ivanhoe purchased a patent from Vania Co. for $1,240,000 on January 1, 2018. The patent is being amortized over its remaining le

Julli [10]

Answer: $744,000

Explanation:

The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:

First, we have to calculate the amortization recorded up to 2019. This will be:

= (1,240,000 / 10) x 2

= 248,000

The we calculate the amortization to be recognized in 2020. This will be:

= (1,240,000 – 248,000) / 4

= 248,000

The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:

= 1240000 - 248000 - 248000

= $744,000

3 0

3 years ago

Please can u explain 5 types of ledgers

horsena [70]

Answer:

1. Sales ledger

2. Purchase ledger

3. Cash ledger

4. General ledger

8 0

3 years ago

Read 2 more answers

He United States–Mexico–Canada Agreement (USMCA) includes new guidelines for digital trade and regulatory practices between the

frutty [35]

It is a true statement that the United States–Mexico–Canada Agreement includes new guidelines for digital trade and regulatory practices between the three nations.

<h3>What is the United States–Mexico–Canada Agreement?</h3>

It a trade deal negotiated by Donald Trump between the three nations which was signed on November 30, 2018.

It replaced the North American Free Trade Agreement which had been in effect since January of 1994.

The USMCA does includes new guidelines for digital trade and regulatory practices between the three nations.

Read more about USMCA

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4 0

2 years ago

The Acme Widget Company has found that if widgets are priced at s 389, then 1000 will be sold. They have also found that for eve

kvv77 [185]

Answer:

See the explanation below.

Explanation:

a. The number of widgets that will be sold

Let y represent the number of widgets that will be sold, and and we already have x as price of widget, we therefore have:

y - 1,000 = (-600/10) * (x - 389)

y - 1,000 = -60 * (x - 389)

y = 1,000 - [60 * (x - 389) ]

y = 1,000 - 60x + 23,340

y = 24,340 - 60x

b. The revenue generated by the sale of widgets

Let R represent Revenue, therefore we have:

R = xy

R = x(24,340 - 60x)

R = 24,340x - 60x²

c. The cost of producing just enough widgets to meet demand

Let C represent total cost, we therefore have:

C = 8,000 + 97.25y

C = 8,000 + 97.25(24,340 - 60x)

C = 8,000 + 2,367,065 - 5,835x

C = 2,375,065 - 5,835x

d. The proft from selling widgets

Let P represent profit, we therefore have:

P = R - C

P = 24,340x - 60x² - (2,375,065 - 5,835x)

P = 24,340x - 60x² - 2,375,065 + 5,835x

P = - 60x² + 30,175x - 2,375,065

e. Find the price that will maximize profits from the sale of widgets

Profit is optimum when dP/dx = 0

Therefore, we have

0 = - 120x + 30,175

120x = 30,175

x = 30,175/120 = $251.46

4 0

3 years ago

When one commercial bank borrows from another commercial bank, it pays the __________ rate.

Len [333]

When one commercial bank borrows from another commercial bank, it pays the discount rate.

The one place where a bank can get reserves is by borrowing from a commercial bank. As whenever a person or a business firm or an organization borrows, they should pay interest and a bank that borrows from a commercial firm must pay interest to them too. The interest that the commercial bank charges to banks that borrow from them is called the discount rate.

The term discount rate is used when looking at a certain amount of money to be received in the future years and calculating the present value now. The word “discount” means the amount to be deducted. A discount rate is a typical rate that is deducted from a future quantity of money to provide its present value to money seekers.

The cash flows of investments or business ventures when at the time of discount, it is important to note whether the discount rates used can be varied depending on particular different elements. So, discount rates are paid to compensate the borrower bank to the lender bank during transactions.

Learn to know more about details of discount rates on

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4 0

2 years ago

Define bank run in your own words.​

Define bank run in your own words.