This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain what is meant by the phrase a bank's balancing act. What will be an ideal ... (Read 107 times)

Zoey63294

  • Hero Member
  • *****
  • Posts: 539
on: Jun 29, 2018
Explain what is meant by the phrase a bank's balancing act.
 
  What will be an ideal response?

Question 2

You want to purchase two umbrellas. The price is 40 per umbrella, 2 for 60, 3 for 75. What will be the marginal cost to you of buying a third umbrella?
 
  A) 75
  B) 25
  C) 20
  D) 15
  E) 10


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Chocorrol77

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jun 29, 2018
Answer to Question 1

Banks accept deposits and make loans with the funds they receive from the deposits. Banks profit if the interest rate they charge on their loans exceeds the interest rate they pay on their deposits. Loans are made for a specified length of time and cannot be called in before they are due. However, deposits can be withdrawn at any time by the depositors. Therefore a bank must perform a balancing act: It is risky to lend too much of the deposits and run the risk of mass withdrawals that would create a crisis for the bank. However, it is by making loans that the bank earns a profit.

Answer to Question 2

D


Zoey63294

  • Member
  • Posts: 539
Reply 2 on: Jun 29, 2018
Gracias!

flexer1n1

  • Member
  • Posts: 373
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Bank teller assisting with customer service. Bank teller assisting with customer service.
Total allowable and actual catch, Grand Bank Atlantic Cod 1959 -2012 Total allowable and actual catch, Grand Bank Atlantic Cod 1959 -2012
E9-23 Prepare income statements Explain the difference in operating income E9-23 Prepare income statements Explain the difference in operating income
Please fully explain the answer with steps Please fully explain the answer with steps
If CP for an ideal gas is 35.4 J/molK, which of the following is CV for this gas? If CP for an ideal gas is 35.4 J/molK, which of the following is CV for this gas?
Explain the myogenic autoregulation of the glomerular filtration rate Explain the myogenic autoregulation of the glomerular filtration rate
Video: Five phases of cardiac cycle & Atrial contraction

For a complete list of videos, visit our video library