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3 years ago

Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions.

Business

1 answer:

Nana76 [90]3 years ago

4 0

Answer:

The explanation is given as follows.

Explanation:

Task 1:

The higher the percentage of assets a bank holds as loans, the higher the capital requirement.

When the owners of the bank borrow $100 to supplement their existing reserves , both reserves and debt increase by $100 , therefore increase in debt as in any balance sheet , the total value of accounts on the left hand should be equal to the right hand , so when there is increase in reserves , there will be increase in debt.

Task 2:

It specifies a minimum leverage ratio for all banks

leverage ratio initially = total assets / capital = 1750 / 125 = 14

leverage ratio new value = total assets / capital = 1850 / 125 = 14.8 ( the assets increase by $100 with increase in reserves)

Task 3

Its intended goal is to protect the interests of those who hold equity in the bank.

Capital requirement are there to ensure that bank have enough capital to repay the depositors and debtors and if a bank holds a higher percent of risky assets , capital requirements will be higher so that the bank remains solvent hence option a is right answer.

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3 years ago

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Jennifer Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activ

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Answer:

B) = $38.44

Explanation:

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3 years ago

Brandon grew up working on a farm but went to school to become an accountant. He decides to put all of his knowledge to work.

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3 years ago

Dave harris has just purchased a bond with a face value of $1,000 that pays 6 percent. the purchase price of the bond was $900,

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The yield of maturity for this bond is "8.4 percent".
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Yield to maturity = YTM = {($1,000 x .06) + [($1,000 - 900)/5]}/[($900 + $1,000)/2]
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3 years ago

_____ involves marketing philosophies, policies, procedures, and actions whose primary objective is the enhancement of society.

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Social responsibility in marketing refers to marketing philosophies, strategies, practices, and actions whose main goal is to improve society and safeguard the environment by using environmentally friendly goods and methods.

SOCIAL RESPONSIBILITY: WHAT IS IT?

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