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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.

You might be interested in
he income statement columns in the end-of-period spreadsheet show that debits are equal to $26,754 and credits are $68,142. what
neonofarm [45]

The information that the statement columns in the end-of-period spreadsheet mean to the accountant is the accounts have not been updated and a net income of $41,388. The correct option is b and c.

<h3>Who is an accountant?</h3>

An accountant is a person who manages and calculates the accounts or finance of a company, a firm, or a person. He calculates the capital of the person, manage taxes and give advice about the finance of the person.

Given that, debits are $26,754 and credits are $68,142. If we subtract the debit from the credit. We see a net income of $41,388.

Thus, the correct option is b. the accounts have not been updated. c, net income of $41,388.

To learn more about accountants, refer to the link:

brainly.com/question/13341312

#SPJ4

4 0
2 years ago
Adjustment for Prepaid Expense The supplies account had a beginning balance of $3,690 and was debited for $1,700 for supplies pu
zysi [14]

Answer:

Dr supplies expense   $4,100

Cr supplies                                       $4,100

Explanation:

Supplies used in the year needs to be ascertained before any adjusting entry can be posted.

Supplies used=beginning supplies+purchases-ending supplies

beginning supplies is $3,690

purchases of supplies was $1,700

ending balance of supplies was $1,290

supplies used=$3,690+$1,700-$1,290=$ 4,100.00  

The used portion of supplies would be debited to supplies expense while supplies inventory is credited with the same amount.

4 0
3 years ago
North Bank has been borrowing in the U.S. markets and lending abroad, thereby incurring foreign exchange risk. In a recent trans
Vsevolod [243]

Answer:

A) 10.82%

B) 5.27%

C) 8.56%

Explanation:

Given data :

North Bank Borrow ; $1.4 million at 5 percent

Lend in pounds at 9%

spread = ( 4% )

spot rate = 1.454

<u>A)  Determine the loan rate to maintain the 4 percent spread</u>

Expected spot rate = 1.43

First step :

Lending amount = $1.4 million / initial spot rate = 1.4 / 1.454 = £ 0.9628 million

next :

calculate the final amount  Required in $ to maintain 4% Spread

= principal ( $1.4 million ) + interest ( 9% of 1.4 ) = 1.4 + 0.126 = $1.526 million

In pound ( at the expected spot rate )

= 1.526 / 1.43 = £1.067 million

expected profit = £1.067 - £0.9628 = £ 0.1042 million

Therefore the interest rate tp maintain the 4 percent spread

= 0.1042 / 0.9628 = <em>10.82%</em>

B) <u>Determine the net interest margin if the bank hedges its forward foreign exchange exposure</u>

Forward rate = 1.46

assuming interest as value calculated above = ( 10.82% )

lending amount = £0.9628 million

Repayment = 0.9628 * 111%  * 1.46 = $1.5603 million

therefore return rate = $1.5603 - $1.4  = $0.1603 million = 10.27%

hence : Net interest margin = 10.27% - 5% = 5.27%

<u> C)  Determine the loan rate to maintain the 4 percent spread if the bank intends to hedge its exposure using the forward rates.</u>

Forward Hedging contract forward rate =  1.46

lending amount = $1.4 / 1.454 =  £ 0.9628 million

Total Interest and Principal Repayment Required in $ to maintain 4% Spread = $1.526 million

In pound = 1.526 / 1.46 = £ 1.0452

Interest = £1.0452 -  £0.9628 =  £0.0824 million

therefore interest Rate to maintain 4℅ Spread

= ( 0.0824 / 0.9628 ) * 100  = 8.56%

3 0
2 years ago
Acquiring a government job based on political loyalty, without regard to ability, is called
umka2103 [35]
Acquiring a government job based on political loyalty, without regard to ability, is called <span>political patronage.

Hope this helps you! :-)</span>
6 0
3 years ago
These items are taken from the financial statements of Coronado Industries at December 31, 2017. Buildings $105,800 Accounts rec
swat32

Answer:

Assets:                                         Liabilities:

<u>Current Assets       </u>                    <u> Current Liabilities</u>

Cash                            11,840          Accounts payable          9,500

Accounts receivable 12,600          Notes payable(current) 13,600

Prepaid insurance <u>     3,200  </u>        Interest payable              3,600

Total current assets:  27,640          Total Current Liab         26,700

<u>Fixed assets:</u>                               <u>Long-term Liabilities:</u>

Buildings (net)       60,200           Note Payable:                80,000

Equipment (net)     63,680             Total Liabilities            106,700

Land                     <u>   61,200   </u>      Equity:

total fixed assets: 185,080              Common stock         60,000

                                                         RE                              46,020

                                                       Total Equity                106,020

Total Assets: 212,720‬                  Total Liab + E              212,720

Explanation:

for RE we need to calculate the net income

income:

Service revenue           14,700

Insurance expense         ( 780 )

Depreciation expense ( 5,300 )

Interest expense          ( 2,600 )

Net income:                    6,020

<u />

<u>RE </u> 40,000 + 6,020 = 46,020

for note payable we split the current and long term portion

93,600 - 13,600 = 80,000 long term debt

te rest is self-explanatory

8 0
3 years ago
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