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

Answer 1

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 - 0.109845

What 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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A Leverage Ratio Is Any One Of Several Financial Measurements That Look At How Much Capital A Firm Holds

Related Questions

Rachael works in a matrix organization, and although she found it confusing at first, she has seen the inherent opportunities. Instead of being promoted from biology head to research head, Rachael prefers a project career, with opportunities to serve in increasingly responsible and diverse project manager/project director positions. Fortunately, one of the strengths of a matrix organization is

Answers

The strengths of a matrix organization is more career choices on both sides of the organization.

What is a Matrix organization?

This involves individuals reporting to more than one leader and the line of communication is usually unlimited and doesn't adhere to a singular line of command.

The roles are usually interchanged which is why she will benefit from the more career choices on both sides of the organization.

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Based on what you see in the employee complaint log, what type of culture has HydroHealth been exhibiting? Servant? Equity? Clan? Market? List of complaints - Sales: Female employee was told by male supervisor that she should to get ahead in sales. - Operations: Male employee was berated by his female supervisor in front of other employees and called and a because he misfiled some customer records. - Accounting: Male employee was told by two other male employees that HydroHealth will not be ahead of the competition for much longer with "" like him around. -Sales: Male employee was told be female supervisor to when he complained about her tone with him. - IT: Female employee was told by female supervisor to get on a competitor so it can be leaked to the market. - Legal: Female employee was told be male employee that during a work trip. - Accounting: Male employee was told be female supervisor that he needs to if he is going to be part of an industry leading company.

Answers

Based on the record of employee complaints, it is correct to say that the HydroHealth company is exhibiting the market culture.

What is market culture?

It corresponds to an organizational culture based on competitiveness in the internal and external environment, that is, competitiveness is also encouraged among employees, being a more aggressive model of culture.

Therefore, the market culture can generate some disadvantages, such as increased employee turnover and task overload, increasing conflicts and negatively impacting the perception of work.

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What could happen if an employee goes against what the business needs

Answers

Answer:

she must be fire

Explanation:

because he or she brakes the law

A username and password is an example of a ______.

A. One-factor authentication

B. Two-factor authentication

C. Call back

D. Single sign-on

Answers

QUESTION

A username and password is an example of a ______.

ANSWER

A. One - factor Authentication

EXPLANATION

One/Single-factor authentication is the simplest form of authentication methods. With SFA, a person matches one credential to verify himself or herself online. The most popular example of this would be a password (credential) to a username

Answer:

One factor authentication

Explanation:

See when you use username and password option

First it asks for usernamethen for password beneath it .

So it happens for once only you won't need any more authentication.

So option A is correct

Robert receives a salary of $60,000 per year, or $2,500 semi-monthly. How
much does Robert pay in unemployment taxes for the entire year?
A. $840
B. $0
C. $420
D. $210

Answers

The amount that Robert will pay in unemployment taxes for the entire year will be B. $0.

Determination of Unemployment Taxes Payable

Employers are subject to an unemployment tax which is known as Federal Unemployment Tax Act (FUTA) depending on the wages and salaries they pay their workers.

Employers must pay FUTA if their employees earn $1500 or more per calendar quarter.

Employers are not obligated to withhold FUTA from employees if we compare it to other payroll-based taxes.

As a result, no unemployment taxes should be deducted from Robert's pay.

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If $1,000 was deposited today at a rate of 15%, its future value in one year would be

$1,000.
$1,150.
$1,500.
$850.

Answers

Answer:

$1,150.

Explanation:

First, we find what that 15% is by setting an equation:

[tex]\frac{15}{100} \times \frac{1000}{1}[/tex]

This gives us: $150

Now, we just add that to the deposited money.

$1000 + $150 = $1,150

Hope this helps!

If you were opening a savings account with compound interest, would you prefer an account that offers annual compounding, quarterly compounding, or daily compounding? Why? (3-6 sentences. 2.0 points)

Answers

Answer:it is B

Explanation:its the mosr resonable

All of the following statements regarding “barter” are true EXCEPT:

It is efficient in terms of resources used.


Its widespread use is limited.


It is an exchange system where goods trade for goods.


Since it requires you to find someone willing to trade, it can be time consuming

Answers

Answer:

1

Explanation:

"It is efficient in terms of resources used."

It is false.

Financial accounting ​

Answers

Answer:

What is the radius if the diameter is 12 meter

You find a zero coupon bond with a par value of $1,000 and 17 years to maturity. If the yield to maturity on this bond is 4.9 percent, what is the price of the bond

Answers

Answer:

$4,434.21

Explanation:

what type of economic system does cubs have

Answers

Answer:

the economy of cuba is a mixed command dominated by state-run enterprises most of the labor force is employed by the state.

Answer the following question using this order book: Order Book Example Buy Orders (Bids) Sell Orders (Asks) Amount Price Amount Price 63 $42.15 3 $42.16 36 $42.12 68 $42.22 112 $41.99 113 $42.25 3 $41.88 9 $42.44 What is the spread for this security after an investor submits a sell order for 185 shares at $41.87

Answers

The spread for this security after an investor submits a sell order for 185 shares at $41.87 is c.) $0.38.

What is the spread?

The spread is the gap or difference between the bid and the ask prices of a security or asset, like a stock, bond, or commodity

The spread is commonly known as a bid-ask spread.  This implies that while the investor is bidding to sell the security at $41.87, it could be sold for $42.25, giving a difference (spread) of $0.38 per share.

Data and Calculations:

Buy Orders (Bids)        Sell Orders (Asks)

Amount       Price         Amount          Price

63              $42.15            3               $42.16

36              $42.12          68              $42.22

112             $41.99          113              $42.25

 3             $41.88             9              $42.44

Spread at a ask price of $42.25 = $0.38 ($42.25 - $41.87)

Answer Options:

a.) 0.01

b.) 0.29

c.) 0.38

d.) 0.17

Thus, the spread for this security after an investor submits a sell order for 185 shares at $41.87 is c.) $0.38.

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Interest will gather on all of the
following EXCEPT which one?
A. a cash purchase
B. an automobile loan
C. a home loan
D. a credit card loan

Answers

A cash purchase is the correct answer.
C. a home loan . Is the answer

Which of the following will you see in a
credit card monthly statement?

A. The interest charged for each type of service used.

B. The deductible for the interest charged to the card.

C. The annual financial plan for the year.

D. The amount of money you may get in the future.

Answers

I think the awnser is d

If profits are negative in a monopolistically competitive market, then: the industry will stop production. new firms will enter the market until economic profits are zero. firms will exit the market until economic profit returns to the optimal positive level. firms will exit the market until economic profit returns to zero

Answers

Profits are negative in a monopolistically competitive market, the new firms will enter the market until economic profits are zero.

What is competitive market?

Competitive market is a market that involves many sellers and producer that are competing with one another.

They compete to provide goods and services

Therefore, profits are negative in a monopolistically competitive market new firms will enter the market until economic profits are zero.

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The town of Newton, Iowa, has a population of only 15,800, with 4,000 employed by the Maytag manufacturing plant located there. This situation would be an example of Choose one: A. a monopoly. B. derived demand. C. a monopsony. D. economic rent.

Answers

Based on the situation in the town of Newton, we can refer to this as an example of a C. Monopsony.

What is a Monopsony?

This refers to an economic situation where there is only one buyer for the goods and services being supplied.

The situation in Newton is a monopsony because Maytag Manufacturing seems to be the only or at the very least, the major buyer of the town's labor.

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what is value laden exchange?​

Answers

Answer:

A value exchange is a description of a transaction which can include, but may not necessarily be, financial in nature. Examples of a value exchange between a brand and a customer can include: The trading of money for goods or services (a straightforward financial transaction)

Explanation:

Budgets that are revised by adding a new quarterly budget to replace the quarter that just elapsed are called: A) Production budgets. B) Sales budgets. C) Cash budgets. D) Rolling budgets. E) Capital expenditures budgets.

Answers

When a budget is revised by adding a new quarterly budget to replace a previous one, this is a D. Rolling budget.

What is a rolling budget?

This is a type of budget that is considered continuous and perpetual because it captures the needs of the company over a longer period.

For instance, a rolling budget might be for a year but divided into 4 parts for each quarter such that as each quarter comes along, the company will simply start using the next quarterly budget.

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Please describe what is wrong with
this statement: Our technical support
team is available 24/7 Monday
through Friday.

Answers

The problem that is wrong here is that the team are said to be available 24/7, yet the days mentioned are from monday to friday. That is 5 days.

How is this wrong in the statement.

When the 24/7 term is used, it refers to the fact that a team would be available from monday through sunday.

The complete days of the week would be occupied by the team. It is a contradiction to use 24/7 and monday through friday together.

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Explain the impact of intonation when used appropriately to support intentions

Answers

The impact of intonation is that it helps to stress or convey information beyond what is being said.

What is intonation?

This term is used to refer to the pitch of a person's tone or voice while they are speaking. It is the rise and the fall in their voice.

The kind of intonation a person has while talking can tell you to an extent how they are feeling.

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it is used to market the product that the business is selling?​

Answers

Answer:

The four Ps of marketing are the key factors that are involved in the marketing of a good or service. They are the product, price, place, and promotion of a good or service. Often referred to as the marketing mix, the four Ps are constrained by internal and external factors in the overall business environment, and they interact significantly with one another.

The 4 Ps are used by companies to identify some key factors for their business, including what consumers want from them, how their product or service meets or fails to meet those needs, how their product or service is perceived in the world, how they stand out from their competitors, and how they interact with their customers.

KEY TAKEAWAYS

The four Ps are the four essential factors involved in marketing a good or service to the public.

These are the four Ps: the product (the good or service), the price (what the consumer pays), the place (the location where a product is marketed), and promotion (the advertising).

The concept of the four Ps has been around since the 1950s; as the marketing industry has evolved, the concepts of people, process, and physical evidence have become important components of marketing a product, too.

Respond by (1) Identifying the type of syllogism below (Categorical, Disjunctive, Conditional) and (2) explain, in your own words, why the structure of the syllogism may be correct, but the conclusion could be false.

Major Premise: If the sidewalk is wet, then it must have just rained.
Minor Premise: The sidewalk is wet.
Conclusion: Therefore, it just rained.

Answers

The syllogism used is conditional, that is, it occurs through deductive reasoning, because if the minor premise is true, the minor premise will also be true.

What is Conditional syllogism?

It is a type of syllogism widely used in everyday life, but the conclusion is not always true, because despite having two true premises, the conclusion can be false, because the argumentation is not always valid, as it does not directly represent the premises.

Therefore, despite being syllogisms that follow the pattern of "If" and "then" to express a logic, the conclusion will not always be true, as this type of syllogism can also be hypothetical.

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What is the value proposition of Tata Nano?

Answers

In this way, Tata Nano's value proposition offered buyers both differentiation and low cost, putting an automobile within reach of mostI Indiansfor the first time. Tata Motors matched its compelling value proposition with a spelling profit proposition.

What are the main goals of Fiscal Policy?

Answers

Answer:

In economics and political science fiscal policy is the use of government revenue collection and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s, when the previous laissez-faire approach to economic management became unworkable. Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorized that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity. Fiscal and monetary policy are the key strategies used by a country's government and central bank to advance its economic objectives. The combination of these policies enables these authorities to target inflation and to increase employment. Additionally, it is designed to try to keep GDP growth at 2%–3% and the unemployment rate near the natural unemployment rate of 4%–5%.This implies that fiscal policy is used to stabilize the economy over the course of the business cycle.

Explanation:

hope this helps if not please let me know

The main goals of fiscal policy are it is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty.

What is fiscal policy?

Fiscal policy is defined as the policy under which the government uses the instrument of taxation, public spending and public borrowing to achieve various objectives of economic policy. Simply put, it is the policy of government spending and taxation to achieve sustainable growth.

Fiscal policy is often contrasted with monetary policy which is regulated by the central bank. It is largely inspired by the ideas of British economist John Maynard Keynes whose theories were developed in the response to the Great Depression and were hugely influential in the formulation of the New Deal in the U.S. that aimed at huge spending for public projects and social welfare development.

When policymakers want to influence the economy, they mainly have two tools at their disposal, Monetary policy and Fiscal policy.

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#SPJ7

What do you think would be the most challenging part of working in advertising?Explain.

Answers

Answer:

coming up with ideas

Explanation:

I think so

Answer:

Choosing the Right Talent

Design agencies and service-based businesses sell the ‘hard work’ of their talented professionals. The agencies make arbitrage on talent by charging a markup on the time consumed by the designers.

Retaining Quality Talent

It is essential to open your borders and not limit the applicants just to your geographical area. The upside is that you get access to a bigger pool of applicants. There could be many challenges, which come with the chore of managing remote workers, but these challenges might be worth the trouble.

What Makes Your Agency Stand Out?

The model of creative agency usually has a poor barrier to entry. It might be easier for a group of people to get together and portray themselves as an ‘agency’.

Client Servicing

Creative agencies overlook the type of processes they are used to while managing projects. Though they don’t want to think in terms of structure, the result is that they end up with little processes. The inability to effectively manage projects can negatively impact an agency’s progress

Lead Generation

The first step in lead generation is to turn to clients who are fit for your agency. To confirm the same, you will have to start doing some research to find out who your targets are. Interview the best clients that you have already, and make a rough sketch of their background and goals.

On January 1, Boston Enterprises issues bonds that have a $1,350,000 par value, mature in 20 years, and pay 8% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 97 and (b) 103.

Answers

1. The amount of interest that Boston Enterprises will pay in cash to the bondholders every six months is $54,000 ($1,350,000 x 4%).

2. The preparation of the journal entries to record the following for Boston Enterprises is:

January 1:

Debit Cash $1,350,000

Credit Bonds Payable $1,350,000

To record the issuance of bonds at par for cash.

2. b) The first interest payment on June 30:

June 30:

Debit Interest Expense $54,000

Credit Cash $54,000

To record the first interest payment.

2. c) The second interest payment on December 31:

December 31:

Debit Interest Expense $54,000

Credit Cash $54,000

To record the first interest payment.

3) The preparation of the journal entry for the issuance of the bonds, assuming the bonds are issued at:

a) 97:

Debit Cash $1,309,500

Debit Bonds Discounts $40,500

Credit Bonds Payable $1,350,000

To record the issuance of bonds at par at a discount.

b) 103:

Debit Cash $1,390,500

Credit Bonds Payable $1,350,000

Credit Bonds Premium $40,500

To record the issuance of bonds at par at a premium.

Data and Calculations:

Bonds face value = $1,350,000

Maturity period = 20 years

Issuance date = January 1

Interest rate = 8%

Interest payment = semi-annually

Interest payment dates = June 30 and December 31

Transaction Analysis:

2. a) The issuance of the bonds on January 1:

Cash $1,350,000 Bonds Payable $1,350,000

2. b) The first interest payment on June 30:

Interest Expense $54,000 Cash $54,000

2. c) The second interest payment on December 31:

Interest Expense $54,000 Cash $54,000

3) The preparation of the journal entry for the issuance of the bonds, assuming the bonds are issued at:

a) 97:

Cash $1,309,500 Bonds Discounts $40,500 Bonds Payable $1,350,000

b) 103:

Cash $1,390,500 Bonds Payable $1,350,000 Bonds Premium $40,500

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The purchase of which of the following gives the buyer part ownership of a company?

A
stock

B
bond

C
futures contract

D
treasury bill

Answers

[tex]\qquad\qquad\huge\underline{{\sf Answer}}♨[/tex]

The Correct option is Stocks !

Stocks are part of net worth of a company, and person who owns stocks of a particular company gains part ownership of that company.

Answer:

A -- Stock

Explanation:

Say an investor buys stock they are buying a percentage of ownership in that company.

Hope this helps! Please let me know if you need more help or think my answer is incorrect. Brainliest would be MUCH appreciated. Have a wonderful day!

Which type of economy has a high birth and death rate because of lack of adequate health care?
A.
economies with a high standard of living
B.
emerging market economies
C.
developed economies
D.
developing economies

Answers

Answer:

D

Explanation:

Because they have a weak healthcare sector and it is possible that their population is malnourished.

Answer

emerging

Explanation:

due to the new way of thinking

Firm A is a profit-maximizing firm with a monopoly in the production of Good X. The firm sells its good for $10 each. We can conclude that Firm A is producing a level of output at which:

Answers

If the Firm A is having a monopoly in the production of X we can assume that the Firm A is producing at a level of output which is marginal cost equals marginal revenue.

What is a monopoly?

This is a situation that exists in a market where there is a single producer or seller of a product. The monopolist has no competitors.

Due to this he enjoys unfair advantages and can set the price in the market to any level that he wants.

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why is it difficult for firm to sustain competitive advantage?​

Answers

Answer:There are four basic reasons why maintaining a competitive edge has become so difficult: lack of differentiation. well informed buyers in the marketplace. the rise of different types of competition.

Explanation:

ur welcome

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