The bank into compliance with the capital requirement

Assignment Help Business Economics
Reference no: EM131112388

The regulators at the FDIC decide to change the captial requirement in order to help prevent another bank crisis. They increase their required capital-to-asset ratio. In the space below explain how a bank can accomplish this -- how they could bring the bank into compliance with the capital requirement. (Hint: I am not asking you to explain how to calculate the new ratio or the new new capital. I am asking you to tell what actions the bank will take to implement the required changes.)

Reference no: EM131112388

Questions Cloud

Recessionary expenditure gap-private closed economy : Recessionary Expenditure Gap- Aggregate expenditures by which aggregate expenditures at the full employment GDP falls short of those required to achieve full employment GDP. Private Closed Economy- An economy that includes consumer, business and gove..
Consider an example of health care market : Consider an example of a health care market and identify ways it differs from a perfectly competitive market. Do you think these deviations from a perfectly competitive market improves a consumers (ie; patients) economic standing? Why or why not?
Compute the optimal replenishment policy : Consider a cruise liner provisioning a certain consumable item for her next trip. In the first stage, the cruise liner procures from the home port region right before the start of the trip. The unit cost for the item at home port is c_1. The trip dur..
Federal reserve has continued its bond-buying program : During the given months of 2014, the Federal Reserve has continued its bond-buying program, called "Quantitative Easing 3" (QE3). During April, the Fed purchased $40 billion worth of bonds. Because of QE3, which of the answer choices gives correct po..
The bank into compliance with the capital requirement : The regulators at the FDIC decide to change the captial requirement in order to help prevent another bank crisis. They increase their required capital-to-asset ratio. In the space below explain how a bank can accomplish this -- how they could bring t..
Loan principal and interest on the agreed upon date : On March 1, Emily loaned Billy $1,000. Emily charged a monthly interest rate of 0.10 percent on the loan. Billy repaid all of the loan principal and interest on the agreed upon date, March 31. If the price of the camcorder on March 1 was $1,000 and f..
Quantity theory of money states that money supply : The quantity theory of money states that the money supply (M), velocity of money (V), price level (P), and real GDP (Y) are related by the equation . According to this equation, if velocity and real GDP are constant and the Federal Reserve decreases ..
Desire to maximize profits can work against racial : The desire to maximize profits can work against racial and other types of discrimination. To see this, consider two equally productive accountants named Ted and Jared. Ted is black, and Jared is white. Both can complete 10 audits per month. If the fi..
In ability-gender and performance standards : In Ability, Gender, and Performance Standards: Evidence from Academic Probation, Jason M. Lindo, Nicholas J. Sanders, and Philip Oreopoulos find evidence using regression discontinuity methods that being placed on academic probation increases the pro..

Reviews

Write a Review

Business Economics Questions & Answers

  Shadow pricing is an important concept

Shadow pricing is an important concept in that it involves unknown or difficult to calculate costs. This creates a range in the pricing. For example, think about amortized costs versus actual costs. How would this affect shadow pricing?

  What effective annual interest-financing arrangement

If you purchase a $25,000 car, which is to be paid for in 60 monthly installments of $489.15, what effective annual interest are you paying for this financing arrangement?

  Elucidate what evidence of excess supply or excess demand

Elucidate what evidence of excess supply or excess demand can you cite in these examples.

  Concept of elasticity-inelastic in short run and long run

Why is the concept of elasticity important? What does it tell economists? Tell whether you would classify automobile production as either elastic or inelastic in the short run and long run. (Keep in mind that we are talking here about supply elastici..

  Present worth of the companys total income

A certain company's income has been declining steadily over the last three years. If income in year 1 was $100,000 and it declined by $10,000 per year; which of the following is closest to the present worth of the company's total income over the thre..

  The marketplace equilibrium price

The marketplace equilibrium price is $45 every bag. The price at a is $85 every bag. The price at c is $5 every bag. The price at f is $59 every bag.

  Illustrate what are the types of business organization

Illustrate what are the types of business organization/ company forms, and their pros and cons (advantages and disadvantages) from an economist point of view.

  The best example of a short-run adjustment

Which of the following is the best example of a short-run adjustment? Smith University completed negotiations to acquire a large piece of land to build its new library. Your local Wal-Mart hires two more associates. A local bakery purchases another c..

  Show the current economic situation

Use the AD/AS model to explain and show the current economic situation. Then suggest a fiscal approach to solve the current economic situation without adding any more debt. The current MPC = .80.

  Gdp every capita in the united states

Europe has leveled off at Illustrate what fraction of GDP every capita in the United States.

  What is the deadweight loss in this market

Cournot Duopoly). Suppose there are two firms, Firm 1 and Firm 2 in a market. Each firm simultaneously chooses a quantity of output to produce (q1 and q2). Total market output is given by Q = q1 + q2. What is the deadweight loss in this market?

  Consider a utility function where utility in period

Consider a utility function where Utility in period t if a person exercises is 2, and utility in period t+1 if they exercise is 8. On the other hand if they donít exercise, their utility in period t is 6, and their utility in period t+1 is 4.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd