When capital adequacy line is equal to the savings per worker function then "normal expected returns to investor".
<h3>What is
capital adequacy/requirement ratio?</h3>
The capital adequacy ratio (CAR) gauges a bank's level of capital retention in relation to its level of risk. The CAR of banks must be monitored by national regulators in order to ascertain how well it can withstand an acceptable amount of loss.
The components of capital adequacy are-
- The Capital Adequacy Ratio (CAR) aims to ensure that banks have an adequate amount of capital to safeguard depositors' funds.
- (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets is the calculation for CAR.
- The BIS's capital standards have tightened up in recent years.
- By reducing the likelihood of bank insolvency, capital adequacy ratios promote the effectiveness and stability of a country's financial system.
- A bank with a high capital adequacy ratio is typically thought to be secure and likely to fulfill its financial obligations.
The principle of capital adequacy are-
- High-quality and loss-absorbing capital are both necessary.
- The Basel III criteria for common stock, along with supplementary tier 1 and tier 2 capital, are applied to establish the quality of capital, with retained earnings being the most important factor.
To know more about the capital requirement, here
brainly.com/question/13676980
#SPJ4
Suppose that at prices of $5, $4, $3, $2, and $1 for product Z, the corresponding quantities supplied are 7, 6, 5,4,3 units, res
Alchen [17]
Answer:
A)Improved technology for producing Z.
Explanation:
- which means automation of production, so when you will have mass production at low cost it will definitely result in a decrease of product cost.
- This shall consequently lead to an increase of the quantities of product Z produced because, the extra capital that comes from saving on the production costs shall be used to produce more goods.
- Since production shall have not cost any extra capital, the price shall remain constant.
Answer:
- Common laws
- Precedent
Explanation:
'Blackstone's Commentaries on the Law of England' is popularly known for elaborating the '<u>common law</u>.' It is characterized as the 'law about the law' which implies that the text penned by Sir William Blackstone functioned to establish the extensive principles of truth, integrity, and justice.
'<u>Precedent</u>' is characterized as the prior decision or judgment of the court that is used as a citation, analogy, or example to resolve a similar dispute in the future. Thus, it allows in developing better assimilation of the law and take future decisions(in similar cases) by using precedents as the reference.
Iran iran iran iran iran iran iran
