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stepan [7]
3 years ago
7

Capital requirements for banks serve all of the following purposes EXCEPT:________.a.to offset the change in incentives caused b

y deposit insurance.b.to reduce deposits.c.to put to use the excess of a bank's assets over its deposits and other liabilities.d.to reduce a bank owner's incentive for excessive risk taking.
Business
1 answer:
SCORPION-xisa [38]3 years ago
3 0

Answer:

b. to reduce deposits

Explanation:

A Capital requirement refers to the amount of capital that a financial institution must have to meet the requirements set by it's financial regulator. All of the answers provided are purposes that this hopes to accomplish except for reducing deposits. It actually hopes to increase deposits which means more customers that are coming in.

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Eva8 [605]
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3 years ago
Identify which principle applies to each scenario by placing the appropriate label next to each scenario.
tatyana61 [14]
<span>Each scenario refers to some label. The labels are placed with a different order. We need to arrange them by checking the possibilities. Labels most probably matches with one scenario each or it can be many. If labels are less in numbers than the scenarios then it can be matched with multiple scenarios.</span>
6 0
3 years ago
In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem,
Leni [432]

Answer:

Y = C + I + G + NX

S = Y - C

S = I + G + NX

Explanation:

National Income Y = C + I + G + NX ; {where consumption, investment, government purchases, net exports ie exports - imports are corresponding expenditure of households, firms, government, rest of the world}

National Saving (S) is income (Y) left after paying for consumption (C) . So, S = Y - C

Using above equations, Y = C + S , Y = C + I + G + NX

C + S = C + I + G + NX

So, S = I + G + NX

4 0
3 years ago
Patricia McDonald has determined that the value of her liquid assets is $4,600, the value of her real estate is $134,000, the va
denis23 [38]

Answer:

Net worth = $169,900

Explanation:

Patricia's net worth is the difference between her assets and liabilities. It is an important measure to guage the financial health of an individual or business.

Total assets= 4,600+ 134,000+ 58,000+ 74,000

Total assets= $270,600

Total liabilities= 6,700+ 94,000

Total liabilities= $100,700

Therefore Net worth= 270,600- 100,700

Net worth = $169,900

5 0
3 years ago
In time of rising prices, ending inventory determined using the LIFO inventory assumption will be ________ than ending inventory
Yuliya22 [10]

Answer:

LOWER

Explanation:

In time of rising prices, the inventory valuation made according to <em>LIFO</em> ( LAST IN FIRST OUT )  will be <u>LOWER</u> than the one valued according to <em>FIFO</em> ( FIRST IN FIRST OUT ) method.

The reason is that in <em>LIFO</em>, the newer stock is sold first, therefore, the remaining inventory is valued according to older purchases, that in inflationary context have lower prices.

6 0
3 years ago
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