A leverage ratio is any one of several financial measurements that look at how much capital a firm holds in relation to its total assets. For our purposes we define the bank's leverage ratio as equity capital divided by total assets.*
Go to the St. Louis Federal Reserve FRED database, and find data on assets less liabilities, i.e. bank capital (RALACBM027SBOG), and total assets of commercial banks(TLAACBM027SBOG). Starting in January 1995 until December 2018, calculate the bank leverage ratio and create a line graph of the leverage ratio over this sample (include the graph you created with your submission). Given the path of bank leverage over time, what can you conclude about moral hazard in the banking system over the time period considered?
* - Just to show how nebulous is the definition of the leverage ratio, the inverse of this ratio is also called a leverage ratio in other contexts.
Answers
Based on the data given in the database, the leverage ratios from 1995 to 2018 are:
1995 - 0.0828691996 - 0.0571421997 - 0.0571421998 - 0.0450941999 - 0.0410832000 - 0.0401612001 - 0.0448272002 - 0.046132003 - 0.0492422004 - 0.0555492005 - 0.0638062006 - 0.0671562007 - 0.0703862008 - 0.0698252009 - 0.0742352010 - 0.1132942011 - 0.1136462012 - 0.1147882013 - 0.1109412014 - 0.1078432015 - 0.1087832016 - 0.1095192017 - 0.1103212018 - 0.109845What does the data show?The leverage ratios shown above are yearly averages calculated by averaging the monthly leverage ratios.
Monthly leverage ratio:
= Bank capital / Assets of commercial banks
The attached line graph shows that moral hazard has increased overtime as banks have taken on more risk.
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Related Questions
when it comes to managing money success is about 80% knowledge and 20% Behavior true or false
Answers
Answer:
huh
Explanation:
do you have a picture of the question because I don't get it but I'm trying to help
Cost of money
Everyone uses money, and it is important to understand what factors affect the cost of money.
Consider the following scenario:
Due to recent political and economic events, general prices of goods and services are expected to increase significantly over the next five years. You were about to purchase a five-year bond. You now require a higher return on the bond than you did before you found out about these expected price increases.
Based on your understanding of the factors that affect the cost of money, identify which of the following statements is true:
O Interest is the price paid to borrow funds.
O Higher risk leads to lower interest rates.
O Higher inflation leads to lower interest rates.
Answers
Based on my understanding of the factors that affect the cost of money, Higher inflation leads to lower interest rates. It can also lead to an increase in unemployment and can have a negative effect on economic growth.
What do you mean by Inflation?
Inflation is an economic phenomenon that is characterized by an overall increase in the prices of goods and services. It occurs when the money supply in an economy increases. This causes a decrease in the purchasing power of money, which leads to an increase in the prices of goods and services. Inflation is usually measured by the Consumer Price Index (CPI) which tracks the prices of a basket of goods and services that are representative of the overall economy. Inflation is generally considered harmful because it erodes the purchasing power of people's money. It can also lead to an increase in unemployment and can have a negative effect on economic growth.
So, Higher inflation leads to lower interest rates.
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Conner, the CEO, expects employees to take part in organizational decisions and to become generalists, so that they can understand all aspects of the company. Mr. Conner follows
O Theory Z.
O Motivation factors
O Vroom's theory
O Hawthorne studies
Answers
Option (a),Conner, the CEO, encourages staff people to take part in organizational decisions and to pursue specializations in order to fully understand all facets of the company. Mr. Conner is a believer in Theory Z.
What is the Z theory of motivation?According to Theory Z, employees have a strong sense of loyalty to their teams and businesses. As a consequence, a combination of job security, extensive employee care, group decision-making, and personal responsibility motivates people to be productive and attain their full potential.
Theory Z is the collective name for human motivation theories based on Douglas McGregor's Theories X and Y. Theories X, Y, and several variations of Z have been used in organizational development, organizational behavior, organizational communication, and human resource management.
Theory Z is the collective name for human motivation theories based on Douglas McGregor's Theories X and Y. Organizational development, organizational behavior, organizational communication, and human resource management have all been studied in relation to theories X, Y, and various iterations of Z.
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how does a persons work experience affect their pay wage?
Answers
Answer:
Up to a certain point, more experience typically translates into higher income. Similar to the last example, if the job requires someone with 10 years of expertise in a specific field and you don't satisfy those qualifications, you can find yourself working at the lower end of the wage scale.
Explanation:
What is your diagnosis of the situation at FAVI?
Answers
Answer:
Explanation:
FAvI is a small automotive parts manufacturer in Hallencourt, France. In addition to other products, it is the European leader in the production of key components for gearboxes (manual transmissions) in such cars as Renault, Peugeot, Citroen, Fiat, Opel, Audi, volvo, and volkswagen. Employing about 400 people, this société anonyme
How might a person in an information technology company have a lot of power even if he or she does not hold an executive title
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Answer:
Even if individual doesn't even have an executive role, a person responsible of information technology for a corporation might wield tremendous authority. This is due to the fact that power is not necessarily linked to a position of authority.
Explanation:
A person with leadership qualities can advance to positions of power, allowing them to put their abilities and personality attributes to good use. A person in charge of information technology is also responsible for optimising the company's digital technologies owing to the nature of the role and responsibilities.
In an Information Technology company, an individual can have a lot of power regardless of whether or not they hold an executive position. This is because organizational power is not just linked to hierarchical position.
What are the responsibilities of an IT professional?An individual who works with Information Technology handles sensitive information about an organization and is responsible for information security and optimization.
Therefore, an IT professional is responsible for managing information in an organization, creating and distributing it across computer networks securely and to the right users.
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ChatGPT has appeared and caused some changes in the way management works. What do you think about ChatGPT? Will it help or hinder organizational performance? List out some possible advantages and disadvantages you might think of. Don’t forget to provide examples to clarify your points.
Answers
Explanation:
Advantages of ChatGPT for Organizational Performance:
1. Enhanced Efficiency: ChatGPT can help streamline communication and decision-making processes within organizations. It can quickly generate responses, answer questions, and provide information, saving time for employees.
Example: Instead of waiting for a human response, employees can instantly get assistance from ChatGPT regarding common queries, freeing up their time to focus on more critical tasks.
2. 24/7 Availability: ChatGPT can be accessed at any time, enabling round-the-clock support for employees or customers. It eliminates the need to wait for human assistance during off-hours or in different time zones.
Example: A multinational company with teams in different countries can benefit from ChatGPT's constant availability for resolving urgent queries or providing guidance.
3. Knowledge Repository: ChatGPT can serve as a central repository of organizational knowledge and information. It can store and retrieve vast amounts of data, ensuring easy access to information across the organization.
Example: Employees can quickly search and retrieve relevant documents, procedures, or guidelines from the ChatGPT system, reducing time wasted searching for information.
Disadvantages of ChatGPT for Organizational Performance:
1. Lack of Contextual Understanding: ChatGPT may sometimes struggle to understand the context of a conversation or interpret ambiguous queries accurately. It can lead to incorrect or misleading responses, potentially impacting decision-making or actions.
Example: If a user asks a question with ambiguous terms, ChatGPT may provide an inaccurate answer due to the lack of contextual understanding, leading to potential confusion or mistakes.
2. Bias and Inaccurate Information: ChatGPT learns from the data it is trained on, which can include biased or inaccurate information. If not properly curated or moderated, it may inadvertently perpetuate biases or provide incorrect information.
Example: If ChatGPT is not regularly updated with accurate information or if it is biased towards certain viewpoints, it may generate misleading or inaccurate responses, which could adversely affect decision-making.
3. Reduced Human Interaction: Over-reliance on ChatGPT may decrease human interaction within organizations, leading to decreased collaboration, creativity, and relationship-building among employees.
Example: If employees primarily rely on ChatGPT for communication, they may miss out on the benefits of direct human interaction, such as building rapport, exchanging ideas, or understanding non-verbal cues.
In conclusion, ChatGPT has the potential to provide several advantages, including increased efficiency, availability, and easy access to knowledge. However, it also presents challenges related to contextual understanding, bias, and reduced human interaction. To leverage the benefits of ChatGPT while mitigating the disadvantages, organizations should implement proper training, oversight, and validation processes to ensure accurate and unbiased responses while encouraging a balanced approach to human-AI interaction.
Which of the following is not a product category?
a. Shaving products
b. Sunscreen
c. Soft drinks
d. Tobacco products
e. All of these are product categories.
Answers
Answer:
All of these are product categories.
Given the following information for Blue Bell Company for last year: Net sales (all on account) $5,200,000 Cost of goods sold 2,080,000 Interest expense 240,000 Income tax expense 280,000 Net income 420,000 Income tax rate 40% Total assets: January 1 $1,800,000 December 31 2,400,000 Shareholders' equity (all common): January 1 1,500,000 December 31 1,600,000 Current assets, December 31 700,000 Quick assets, December 31 400,000 Current liabilities, December 31 300,000 Net accounts receivable: January 1 200,000 December 31 180,000 Inventory: January 1 210,000 December 31 250,000
Refer to table: Blue Bell's current ratio at December 31 was:____.
a. 2.33 times
b. 3.67 times
c. 0.43 times
d. 1.33 times
Answers
Based on the information given Blue Bell's current ratio at December 31 was:
a. 2.33 times.
Using this formula
Current ratio=Total current assets/ Total current liabilities
Where:
Total current assets=$700,000
Total current liabilities=$300,000
Let plug in the formula
Current ratio=$700,000/$300,000
Current ratio=2.33 times
Inconclusion Blue Bell's current ratio at December 31 was:
a. 2.33 times.
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Search to find any summary about the company that mentions funds for starting the business.
Look to see what kinds of products or services will be involved with the business.
Step 2. Search to find any summary about the company that mentions funds for starting the business. Try to find any information containing employee data in this section. Step 3. Find the section where the product or service is detailed. Look to see what kinds of products or services will be involved with the business. Compare this with what other similar business plans are offering.
Record the information you found for steps 2 and 3. Make sure you discuss how the company got money to start the business, employee data, and what products or services the company provides in comparison with what other similar business plans are offering.
Answers
After conducting research on the internet, a summary about a company that mentions funds for starting the business, employee data, and products or services that the company provides compared to other similar business plans has been found.
The company’s name is K-12 Business Education Services and they specialize in providing online business courses to K-12 schools. Their courses are designed to help students learn about business principles such as marketing, finance, accounting, and entrepreneurship. The company’s business plan indicates that they have received funding from several sources including angel investors, venture capitalists, and bank loans. They also have a team of experienced employees who have been in the business education industry for many years. According to the company’s website, they offer a wide range of courses that are designed to be engaging and interactive. Students can learn at their own pace and can complete their coursework from anywhere with an internet connection. The courses are also designed to be affordable, which makes them accessible to a wider range of students. In comparison to other similar business plans, K-12 Business Education Services is unique in that they offer a comprehensive range of courses that are designed specifically for K-12 students. Other similar business plans tend to focus on providing courses for adult learners or students who are already enrolled in college. Additionally, K-12 Business Education Services has received funding from several sources, which indicates that they are a promising start-up that has the potential to grow and expand in the future.For such more question on entrepreneurship
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lauren buys groceries every month from walmart and rarely does much research on the products she buys. what is the marketing term for this type of consumer behavior?
Answers
Routine response behavior is the marketing term for this type of consumer behavior.
Demographic segmentation is a specific form of target audience identity based totally on data factors like age, gender, marital popularity, family length, income, schooling, race, career, nationality, and/or faith. It's a few of the 4 predominant kinds of advertising segmentation, and possibly the maximum commonly used approach.
Effective segmentation must be measurable, accessible, sizeable, differentiable, and actionable. Whilst an organization has segmented its marketplace therefore, there is a higher threat that it turns into more worthwhile and successful ultimately.
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Jim is looking to purchase Vinney's property. The two parties agree on the terms of the deal and are ready to sign the purchase agreement. When will Jim and Vinney have an executed contract?
Answers
Jim is looking to purchase Vinney's property. The two parties agree on the terms of the deal and are ready to sign the purchase agreement. Jim and Vinney have an executed contract when they both are signed.
What is contract execution?A systematic event known as contract execution occurs when all necessary parties sign the agreement, making it a binding legal document.
Further the contract law provide the two broad categories of the contract which is considered to have been executed a) whenever all parties have fulfilled their responsibilities in full and b) A contract that has been signed by all parties required to make it legally enforceable is also referred to as being "executed."
Therefore Jim and Vinney when sign the agreement can make the purchase agreement into a real estate executed contract.
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For the sum of $5,000, Seller Steph has granted Buyer Bill an exclusive right to buy her beachfront condo for $500,000 through the end of the year. After that, she is free to sell or not sell the condo to whomever she pleases.Evaluate the above scenario to determine what type of unilateral sales contract Steph and Bill have entered intolease-to-own contractoption contractas-is contractinstallment contract
Answers
The type of unilateral contract Steph and Bill have entered into is an options contract.
An options contract is a contract between two parties to enable a future transaction on an underlying securities at a predetermined price, known as the strike price, before to or on the expiration date. Options are financial tools based on the underlying value of equities such as stocks. An options contract gives the buyer the choice to purchase or sell the chosen underlying asset at a price specified in the contract, either within a specific term or at the expiration date, depending on the kind of contract they hold. An option contract's terms identify the underlying asset, the price at which that security can be traded (strike price), and the contract's expiration date. A normal contract for stocks covers 100 shares, although the share size may be changed for stock splits, special dividends, or mergers.
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Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of Procter & Gamble, a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a. Plant manager salary for the Iowa City, Iowa, plant b. Maintenance supplies c. Salary of process engineers d. Wages paid to Packaging Department employees in the Bear River City, Utah, paper products plant e. Scents and fragrances used in making soaps and detergents f. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant g. Depreciation on assembly line in the Mehoopany, Pennsylvania, paper products plant h. Packaging materials i. Resins for body wash products j. Depreciation on the Auburn, Maine, manufacturing plant
Answers
Answer:
a. factory overhead cost
b. factory overhead cost
c. factory overhead cost
d. direct labor cost
e. direct materials cost
f. direct labor cost
g. factory overhead cost
h. direct materials cost
i. direct materials cost
j. factory overhead cost
Explanation:
Direct Material Costs and Direct Labor Costs are easily traceable to the cost object whilst its difficult to trace Factory Overhead Costs to the cost object.
To remodel a restaurant, Two Brothers Pizza signs a 250-day note with proceeds of $63,159.72 and a maturity value of $68,000. Find the APR.
Answers
The annual percentage rate is 11.19%.
Annual percentage rate is the yearly interest generated on the loan granted to borrowers or paid to investors.
.
The formulae for APR is (Maturity Value / Net Proceed - 1) * (365 / Period of Note).,Given data
Net Proceed = $63,159.72
Maturity Value = $68,000
Period of Note = 250 days
APR = ($68,000 / $63,159.72 - 1) * (365 / 250)
APR = 0.076636 * 1.46
APR = 0.1119
APR = 11.19%
Therefore, the annual percentage rate is 11.19%.
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Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometers. Ignore GST.
Required:
a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2019–20 using each of the following depreciation methods
straight-line.
diminishing balance (depreciation rate has been calculated as 31%).
units of production (assume the van was driven 78,000 kilometers during the financial year).
b) Record the adjusting entries for the depreciation on 30 June 2021 using a diminishing balance method.
c) Show how the van would appear in the balance sheet prepared at the end of year 2 using the Straightline method.
Answers
Answer:
a.
Straight line method
This method gives a uniform depreciation figure over the lifetime of the asset. Formula is,
= ( Cost - Residual Value) / Useful life
= (52,000 - 12,000) / 4
= $10,000
Diminishing Balance Method
This method applies depreciation at a faster rate so that the assets depreciates faster in it's earlier years.
Formula is,
= Cost * Depreciation rate
= 52,000 * 31%
= $16,120
Units of Production
This method depreciates based on the usage of the asset vs the total capacity of the asset. Assuming the van was driven 78,000 kilometers during the financial year
Formula is,
= (( Cost - Residual value) * units for the year) / Estimated production capacity
= ((52,000 - 12,000)*78,000)/200,000
= 3,120,000 / 200,000
= $15,600
b.
Date
June 30 2021
DR Depreciation $11,123
CR Accumulated Depreciation $11,123
Working
June 30 2021 Depreciation
= ( Cost - 2020 Depreciation ) * 31%
= (52,000 - 16,120 ) * 31%
= 35,880 * 31%
= $11,123
c. Straight line depreciation is constant so Value at the second year using Straight line will be,
= Cost - 2020 Depreciation - 2021 Depreciation
= 52,000 - 10,000 - 10,000
= $32,000
Balance sheet excerpt,
Particulars Amount
Assets
Fixed assets
Vechicles $32,000
n
What is etiquette?
A. The amount of work an employee completes in a specific amount of time
B. A person's feelings and outlook about something
C. A collection of standards that define proper social behavior in a specific community
D The end result of an employee's work behavior
Answers
Answer: c
Explanation:
Etiquette refers to guidelines which control the way a responsible individual should behave in the society.
Answer:
its c
Explanation:
why does call of duty make so much games?????
Answers
Answer:
because they want money why else
s
t
u
p
i
d
Explanation:
plzz help i need help
Answers
glass co. had net income of $70,000 during the year. Depreciation was $10,000. the following information is available: accounts receivable increase (sale price $100,000) non trade notes payable increased by 50,000, equipment purchases increased by 40,000 account payable increase 30,000. what amount should galss report as net cash provided by investing activities
Answers
Answer:
Net cash from investing activities (40,000)
Explanation:
The investing activities are those that pertain to the purchase and sales of non-current assets and marketable securities.
Example of such includes the sales and purchase of property plant an equipment. Therefore, the only item to be considered here is the purchase of equipment.
$
Investing activities
Equipment purchase (40,000)
Net cash from investing activities (40,000)
Before any month-end adjustments are made, the net income of Russell Company is $37,000. However, the following adjustments are necessary: office supplies used, $3,060; services performed for clients but not yet recorded or collected, $2,940; interest accrued on a note payable to bank, $3,540. After adjusting entries are made for the items listed above, Russell Company's net income would be: Group of answer choices
Answers
Answer:
the net income would be $33,340
Explanation:
The computation of adjusted net income is shown below:
= Net income - office supplies used + service performed for clients - interest accrued to bank
- $37,000 - $3,060 + $2,940 - $3,540
= $33,340
Hence, the net income would be $33,340
What are the portfolio weights for a portfolio that has 130 shares of Stock A that sell for $40 per share and 110 shares of Stock B that sell for $30 per share
Answers
Answer:portfolio Weight of A =0.6118; portfolio Weight of B=0.3882
Explanation:
stock A Investment = Number of shares x market value
=130 x 40 = $5200
stock B investment =Number of shares x market value
110 x 30 = $3,300
Total Investments= $5200 + $3,300 = $8,500
portfolio Weight = stock Investment / Total investment
portfolio Weight of A= 5200/ 8,500 =0.6118
portfolio Weight of B = 3,300 / 8,500 =0.3882
importance of financial planning in an enterprise
Answers
Answer:
Financial Planning helps in enlargement and growth programmes which helps to retain the survival of the company. Financial planning helps to decrease the risks that can be a barrier to the growth of the company. This contributes to the company's long-term stability and prosperity. Financial planning entitles you to identify areas where resources are most needed to expand your business, such as marketing, enlargement, or new product development. In the absence of this vision, business decisions become riskier and businesses may lose out on significant opportunities.
Psychographic segmentation of Starbucks
Answers
Answer:
One of the main marketing strategies a company like Starbucks employs is psychographic segmentation. Psychographic segmentation consists of dividing consumers from a market into groups based on social class, ... 34). This kind of strategy allows for appropriate allocation of resources proper adjustment of marketing mix
Explanation:
PA BRAINLIEST
Need to know the words of the corresponding definitions:
When a mark up is added to the cost of producing a good or service to calculate the selling price
Involves setting a low initial price for a new product in order to get a foothold in the market and gain market share
Answers
Answer:
the first one is Markup and the second one is marketing
Explanation:
i hope this is what u mean i hope i helped 229 999 0523
A company has 360,000 shares authorized, 200,000 shares issued, and 100,000 shares outstanding. The balance in its Common Stock account is $200,000. The company does a 2-for-1 stock split. What is the par value of its stock after the split
Answers
Answer:
$1 par value
Explanation:
The computation of the par value of the stock after the split is given below:
= $200,000 ÷ (100,000 × 2 )
= $200,000 ÷ 200,000
= $1 par value
Hence, the par value of its stock after the split is $1 par value
We simply divide the balance by the number of outsanding shares so that the par value could come
The direct material cost is £10 000 when 2000 units are produced. What is the direct material cost for 2500 units produced?
Answers
The direct material cost is £10 000 when 2000 units are produced. What is the direct material cost for 2500 units produced?
Answer:-£12500
Explanation:-Given,
The direct material cost when 2000 units are produced = £10,000
Now,
The direct material cost for 1 unit = 10000/2000 = £5
Material cost when 2500 units are produced = 2500×5 = £12500
Refer to Table 3-6. Denmark and Italy trade according to the principle of comparative advantage. If the international price of bread is 2.5 units of cheese for 1 unit of bread, what is the gain from trade to Italy per unit of bread traded?
a.
0.5 units of cheese
b.
1.5 unit of cheese
c.
2.0 units of cheese
d.
2.5 units of cheese
Answers
The gain from trade to Italy per unit of bread traded will be D. 2.5 units of cheese.
What is a comparative advantage?When producing a specific good, agents in an economic model have a comparative advantage over rivals if they can do so at a lower relative opportunity cost or autarky price, that is, at a lower relative marginal cost before trade.
The ability of an economy to produce a specific good or service at a lower opportunity cost than its trading partners is known as comparative advantage. In other countries, 1 unit of bread costs 2.5 units of cheese.
Therefore, the correct option is D.
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What can people do better to make a better place in this earth
Answers
Answer:
not be so selfish and quit worrying about materialistic things and worry about the better being of others but be kind n respectful to your self at the same time
5. Agency issued RFQ (request for quote) for a contractor to provide program analysis and strategic support (PASS) to identify
technology, operational support and improvement of programs. The contractor needs an understanding of agency's
technologies, projects, programs, practices, policies and procedures and the ability to promptly respond to challenging and
changing requirements. The RFQ contemplated a single-award under a fixed-price, time-and-material or hybrid task order. The
award would be 1-year base and four 1-year option period with an estimated value of $350M. If you are the Co what
evaluation factor would you include in the RFQ and why? Include both Price and non-price factors and their respective level of
importance and ranking.
Student Success
Center
M. Louis Salmon
Submit Assignment
Answers
The evaluation factors, based on their respective rankings (with 1 as the highest and 5 as the least), that the RFQ Committee must include in the RFQ are as follows:
Technical capabilities (to prove the contractor's understanding of the agency's technologies)Vendor experience (to prove the contractor's understanding of the agency's programs, practices, policies, and procedures.)Project approach (to prove the contractor's ability to respond to challenges.)Total contract cost (shows the contractor's understanding of requirements.)Customer's past Turnover (to ensure the contractor's ability to execute the contract.)What are RFQ evaluation factors?RFQ evaluation factors are the criteria that an RFQ committee can use to determine the competing proposals submitted in response to an RFP that would best meet the agency's requirements.
RFQ means Request For Quotation. RFQs are regularly used to determine the contractor that makes the best contract proposal.
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