Chapter 19: Types of Risks Incurred by Financial Institutions 46. Why do banks continue to make credit card loans even though credit card default rates are often at least twice as high as other loan types? Answer: Credit card loss rates are higher than many other loan types‚ but FIs charge high enough interest rates (and fees) to make them worthwhile. FIs also extend credit card loans to large numbers of borrowers and the ensuing diversification reduces the risk. Level: Medium 47
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conditions were unable to meet the need of such a high number of students whose age was between 60 and 80 months. After the schooling age was rearranged as 60-72 months at the very beginning‚ the number of first graders were supposed to be twice as high as the previous years. This is because both the 60-72 months (new system) and 72-84 months (old system) participated in education altogether as first-graders in the 2012-2013 academic year. The number of the students was estimated to be around 70 per classroom
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Transaction cost theory states that the goal of an organization is to minimize the costs of exchanging resources in the environment and the costs of managing exchanges inside the organization. Transaction costs are defined as the costs of negotiating‚ monitoring‚ and governing exchanges between people Transaction costs result from a combination of human and environmental factors Transaction costs result from a combination of human and environmental factors: Opportunism
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ratios are not equal‚ the restaurant should change inputs. To make the ratios equal the restaurant should use more capital and less labor. This tells us that the capital is 12 times as productive and 10 times more costly. Question2 A competitive firm sells its product at a price of $0.10 per unit. Its total and marginal cost functions are: TC = 5 - 0.5*Q + 0.001*Q2 MC = -0.5 + 0.002*Q‚ where TC is total cost ($) and Q is output rate (units per time period). (a) Determine the output rate
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President Bill Clinton’s inauguration in 1993. Ms. Angelou is also known as "America’s most visible black female autobiographer". She is known because of her harsh and honest writings. Another entertainer was Marian Anderson; an opera singer and the first African-American to sing at the New York Metropolitan Opera. She helped break the color barrier in the arts. Then‚ of course is Oprah Winfrey: a talk show host who motivates both young and old. Oprah is an American television host‚ producer‚ and philanthropist
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Enron’s Questionable Transactions 1. The special purpose entities (SPEs) got Enron into trouble. 2. It is debatable whether Enron’s directors knew how profits were being made through the SPEs. Speculation is that they did have knowledge‚ but did not question the questionable procedures. Evidence that indicates the directors knew how profits were being made includes the following: • Andrew Fastow’s role in establishing the SPEs and falsely creating 3% independent investors in
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Background This profile envisages the establishment of a snake farm for the production of venom with a capacity of 100 gm per annum. The present demand for the proposed product is estimated at 5‚500 kg per annum. The demand is expected to reach at 11‚434 kg by the year 2022. The plant will create employment opportunities for 27 persons. Venom is a poison of animal origin usually restricted to poisons that are administered
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Paralegal Veronica Decker Re: Security Protocols in the Law Office Date: 04-26-2014 Attorney Gauvin‚ The information that you requested in regards to the ethical rules about what is permissible to include in the website for the law firm. The law firm website must include the jurisdiction (state) in which s/he is licensed to practice. If the attorney fails to do so s/he has violated the ethical Rules 5.5: Unauthorized Practice of Law; Multijurisdictional Practice of Law and 7.1: Communication
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A Comparative Study Between The Practices Of Interior Design And Architecture And A Discourse On The Professionalization Of Interior Design Interior Design and Architecture Interior Design is considered a generally young profession. Throughout history‚ the differences between architects‚ builders‚ designers and other professionals involved in building a structure has been decidedly blurred and drawing the line between all the disciplines involved has been a rather recent occurrence. The practice
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hours‚ this writer spoke with Ms. Sandra Reyes via phone. Ms. Sandra Reyes is the mother and reporting person for M-1 and M-2 (Jessica Reyes). Ms. Sandra Reyes is a Spanish speaking individual. This writer was assisted by Officer Roman for the translation and interpreting of the conversation along with Mr. Bryan Reyes‚ who is the brother of M-1 and M-2. Ms. Reyes‚ reports M-1 and M-2 often leave the home without permission. She also reports this is not the first time her daughters have left home without
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