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Katarina [22]
3 years ago
12

Define bank run in your own words.​

Business
1 answer:
lina2011 [118]3 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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Consider a hypothetical economy in which only computers and shoes are produced and in which computer production is capital inten
aksik [14]

Answer:

B) higher in the computer industry

Explanation:

Two industries are given: computer and shoe industry.

it is given in the question that the computer industry is more capital intensive than the shoe industry. which means that the computer industry involves more investment than the shoe industry. Hence, if we calculate the capital and labor ratio then we get a high capital ratio for the computer industry because it includes high investment than shoe industry

6 0
3 years ago
Tyron is saving up money for a down payment on a motorcycle. He currently has $5648, but knows he can get a loan at a lower inte
Scilla [17]

Answer:

monthly  time  = 1.966

Explanation:

given data

final amount = $6355

initial principal = $5648

rate = 6 %

solution

we get here time by this formula

amount = principal × (1+r)^{t}    ............1

put here value and we get time t

6355 = 5648 × (1+\frac{0.06}{12})^{12\times t}    

1.125 = (1.005)^{12\times t}  

take ln both side

ln 1.125 = ln  (1.005)^{12\times t}  

0.1177 = 12 × t × 4.9875 × 10^{-3}  

monthly  time  = 1.966

4 0
4 years ago
David is trying to decide if it makes sense to outsource the purchasing function. He has a chain of 12 restaurants and employs t
Harrizon [31]

Answer and Explanation:

The computation is shown below;

a) The In-house purchasing cost last year is

= Fixed costs + Variable costs

 =$85,000 + Total number of purchase orders × cost per order

 = $85,000 + 1400 × 15

= $106,000

b)

The outsourcing cost is

Outsourcing cost = Fixed costs +Variable costs

 = $100,000 + Total number of purchase orders × cost per order

= $100,000 + 1400 × 5

 = $107,000

c) Total number of purchase orders = 1600

In-house purchasing cost = 85,000 + 1600 × $15 = $109000

Outsourcing cost = $100,000 + 1600 × $5 = $108000

Yes, David should outsource as the outsourcing cost is less than the in-house purchasing cost.

6 0
3 years ago
You expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in each of the three years. You believe the stock will s
Vladimir [108]

Answer:

$18.095417

Explanation:

To obtain the current stock price, bring all paid dividends and the stock selling price to present value at a 10% rate per year:

P=\frac{(1.00)}{(1+0.10)}+\frac{(1.25)}{(1+0.10)^2}+\frac{(20+1.50)}{(1+0.10)^3}\\P= \$18.095417

*Note that for the dividends paid after the first year, only one period was considered, and for the dividends paid after the second year, only two periods were considered.

The stock price is $18.095417

4 0
4 years ago
Aarp expects agents offering aarp-branded products to demonstrate five key behaviors when interacting with customers. Aarp wants
Andre45 [30]

Answer: Effortless and inspiring

Explanation:

3 0
3 years ago
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