Business, 12.12.2019 06:31 itsstaytay200

After graduating, you take an unusual job: consulting with the queen of a small, newly populated island in the middle of the sea. you’ve provided advice to her on matters related to government and the economy, and while she has taken your advice most of the time, she has so far turned down your suggestion to have a banking system. she claims that banks will make the economy more complicated and do little to make the lives of her subjects easier. over the past several months, though, the queen has discussed with you several issues that have arisen in the newly formed economy. for each of the three quotes from the queen below, refer to one of the three functions of banks discussed in this chapter to explain how a banking system could with the issue described. a. "when my subjects have money left over after spending, they want to keep it somewhere safe and earn some interest on it. but that’s hard for most of them because they have no way of finding out who wants to borrow and whether it would be a good idea to lend to them."in this situation, banks could: provide liquidity. diversify risk. intermediate between savers and borrowers. b. "my subjects are lucky that we have very little crime, so they can safely keep their extra money inside their houses and take only what cash they need for a day’s spending. however, many of them have complained that if an emergency occurs when they’re all the way on the other side of the island, they can’t access their funds."in this situation, banks could: intermediate between savers and borrowers. diversify risk. provide liquidity. c. "some of my subjects who are in the know about good borrowers have been making loans and earning interest. but lately there have been a couple of borrowers who defaulted on loans, and when they did, the lenders were totally out of luck. all that money just disappeared! and those bad experiences have made other potential lenders afraid, so that now borrowing and lending have dried up almost completely. if only there were some easy way for them to divide their savings among several different borrowers, they might feel safe enough to start lending again! "in this situation, banks could: intermediate between savers and borrowers. provide liquidity. diversify risk.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 20:00

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.

Answers: 3

Answer

Business, 22.06.2019 21:30

Providing a great shopping experience to customers is one of the important objectives of purple fashions inc., a clothing store. to achieve this objective, the company has a team of committed customer service professionals whose job is to ensure that customers get exactly what they want. this scenario illustrates that purple fashions is trying to achieve

Answers: 1

Answer

Business, 23.06.2019 01:00

Need with an adjusting journal entrycmc records depreciation and amortization expense annually. they do not use an accumulated amortization account. (i.e. amortization expense is recorded with a debit to amort. exp and a credit to the patent.) annual depreciation rates are 7% for buildings/equipment/furniture, no salvage. (round to the nearest whole dollar.) annual amortization rates are 10% of original cost, straight-line method, no salvage. cmc owns two patents: patent #fj101 and patent #cq510. patent #cq510 was acquired on october 1, 2016. patent #fj101 was acquired on april 1, 2018 for $119,000. the last time depreciation & amortization were recorded was december 31, 2017.before adjustment: land: 348791equpment and furniture: 332989building: 876418patents 217000

Answers: 3

Answer

Business, 23.06.2019 01:20

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east westsales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 )the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss) of: multiple choice$91,900$(64,100)$(142,000)$(50,100)

Answers: 3

Answer

You know the right answer?

After graduating, you take an unusual job: consulting with the queen of a small, newly populated is...

Questions