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3 years ago

8. Why is the failure of a large bank more detrimental to the economy than the failure of a large steel manufacturer?

Business

1 answer:

zysi [14]3 years ago

7 0

Answer:

Following are the responses to the given question:

Explanation:

Banks are just an integral aspect of an economy's flow of money. When a big steel factory fails, jobs and GDP will be lost, yet financing inside the economy would not be available because of the main banking collapse in decrease its availability of credit throughout the industry, a large bank is unable to do even more damage to the economy than a huge metal fabricator.

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If Ralph has $2,900 in stable gross monthly income, what is the maximum total debt allowed for Ralph by conventional lenders

dezoksy [38]

Based on Raph's stable gross monthly income, the maximum total debt allowed per month is<u> $1,044</u>

Most conventional lenders prefer to lend to a person whose debt to income ratio is 36% and below.

Ralph's maximum debt allowed is therefore:

<em>= Debt to income ratio x Stable gross income </em>

= 36% x 2,900

= $1,044

In conclusion, Ralph's maximum debt is $1,044

Find out more about debt to income ratio at brainly.com/question/24814852.

8 0

2 years ago

Suppose that on March 16, 2019, a marble statue handmade in Canada is priced at CAD 1,700. The approximate U.S. dollar price of

Tamiku [17]

Answer: $1,443.81

Explanation:

The exchange rate is CAD 1 = US$0.8493

If a statue is priced at CAD 1,700, in American dollars it would be:

= Canadian dollar * Exchange rate

= 1,700 * 0.8493

= $1,443.81

7 0

3 years ago

The Good Roads Amendment requires that _______ percent of road-user fees be spent on building and maintaining roads.

suter [353]

Answer:

75 percent

Explanation:

The good roads amendment is a law enacted by legislatives in the USA states that ensure maintenance of roads in each state as well as interconnecting roads.

It states, amist other things, that 75% of road user fees collected through tolls and other means are spent on road maintenance.

Cheers.

8 0

4 years ago

A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly dep

nirvana33 [79]

Answer:

The amount left in the account after last withdrawal is $61,945

Explanation:

The first monthly deposit occurred on June 1, 2008 and the last monthly deposit will be on January 1, 2015 = 80 deposit

Monthly deposit = 2,100

Interest rate = 12% / 1% per month

Firstly, we calculate the future worth of the monthly deposit

FW = A(F/A, i, n)

A = 2,100, i = 1%, n= 80

FW = $2100*[(1+0.01)^80 - 1 / 0.01]

FW = $2100*[2.216715 - 1 / 0.01]

FW = $2100*(121.671)

FW = $255,509.10

We calculate the effective interest rate

i(effective) = (1 + i nominal monthly interest rate)^n - 1

i `%, n = 3(no of months in quarter)

i (effective) = (1+0.01)^3 - 1

i (effective) = (1.01)^3 - 1

i (effective) = 1.030301 - 1

i (effective) = 0.030301

i (effective) = 3.0301%

The effective quarterly interest rate is 3.0301%

We calculate the future worth of the quarterly drawings

FW = A[(1+i)^n - 1 / i]

A = 5,000(drawing), i = 3.0301%, n = 26(number of drawings)

FW = 5,000*[(1+0.030301)^26 - 1 / 0.030301]

FW = 5,000*[2.17303717 - 1 / 0.030301]

FW = 5,000*(38.71282)

FW = $193,564.10

The future worth of the quarterly withdrawal is $193,564.10

We calculate the amount left in the account after last withdrawal

Amount left in account = FW(monthly deposits) - FW(quarterly drawings)

Amount left in account = $255,509.10 - $193,564.10

Amount left in account = $61,945

Thus, the amount left in the account after last withdrawal is $61,945

6 0

3 years ago

Ruben is the chief executive officer of a multinational corporation. He manages 15 teams, and the leaders of each team report to

lys-0071 [83]

Answer:

D) bureaucratic control

Explanation:

It seems that in this scenario, Ruben is using bureaucratic control. This term refers to the use of various different rules, policies, authority, documentation, reward systems, and even other formal methods in order to convince and control employee behavior and performance. Which is what Ruben does with his teams of employees by rewarding them if they perform well and taking away their earned leaves if they perform badly.

5 0

3 years ago