Answer:
False
Explanation:
Shadow banking systems includes financial institutions that are not regulated by the government or operate outside government-regulated banking systems.
Shadow banks channel money from savers to borrowers outside the regulated banking system.
Commercial and community banks are regulated by the government, therefore they are not part of the shadow banking system.
The shadow banking system includes non-bank financial institutions that perform bank-like operations but outside the traditional banking system. They play a role in the overall monetary system which, when functions smoothly, facilitates economic transactions. However, problems can arise if these institutions face stress, and their less regulated nature can present added risks.
The shadow banking system doesn't refer to specific banks like commercial or community banks. Instead, it includes nonbank financial institutions such as investment banks, hedge funds, money market funds, and insurance companies. These entities perform bank-like activities but outside of the traditional banking system, hence 'shadow'. They contribute to the economy by linking investors and borrowers, just like traditional banks. However, they are less regulated.
These nonbank institutions come into play in the overall process of money creation. Money is deposited in bank accounts, which is then loaned to businesses, individuals, and other entities, including shadow banks. This integrated system of money, loans, banks, and non-bank institutions ideally gives rise to smooth economic transactions.
However, as exemplified by the 2008-2009 Great Recession, this system can also cause problems when these institutions face financial stress such as asset devaluation, making loans less available. The shadow banking system, due to its less regulated nature, can pose additional risks to the overall financial system and economy if not managed properly.
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Answer:
$35,000
Explanation:
net operating income under variable costing would be calculated by preparing income statement under variable costing.
Smith Company
income statement under variable costing system
Sales (7,500 x $40) $300,000
Less Cost of Sales (7,500 x $18) ($135,000)
Contribution $165,000
Less Expenses
selling and administrative expense ($4 x 7,500) ($30,000)
fixed overheads :
manufacturing ($80,000)
selling and administrative expense ($20,000)
Net Income $35,000
The net operating income under variable costing for Smith Company is $24,000.
The net operating income under variable costing can be calculated by subtracting the variable manufacturing cost per unit, variable selling and administrative expense per unit, and the total fixed manufacturing overhead and fixed selling and administrative expense from the total revenue.
Variable cost per unit = Variable manufacturing cost per unit + Variable selling and administrative expense per unit = $18 + $4 = $22
Total revenue = Selling price per unit × Number of units sold = $40 × 7,500 = $300,000
Total variable cost = Variable cost per unit × Number of units produced = $22 × 8,000 = $176,000
Total fixed cost = Fixed manufacturing overhead + Fixed selling and administrative expense = $80,000 + $20,000 = $100,000
Net operating income under variable costing = Total revenue - Total variable cost - Total fixed cost = $300,000 - $176,000 - $100,000 = $24,000
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Answer:
False
Explanation:
The reason is that the liability can not be waived unless the lender agrees to waive off the liability which means that in this case Rayna hasn't waived off its amount receivable so the Billy owes Rayna remainder $2700 despite sending payment in full check.
b. False
It is true that many automobile companies have custom options available for disabled people.
Many automobile companies offer custom options and modifications for disabled people to make their vehicles more accessible and accommodating to their specific needs. These modifications can include wheelchair ramps, hand controls for driving, swivel seats, and other adaptive features.
Accordingly, Providing such options is an important step towards inclusivity and ensuring that people with disabilities can have greater independence and mobility. This also helps to prevent forms of discrimination and foster inclusion.
Learn more about automobile here: brainly.com/question/1321080
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Answer:
Excluded from GDP
The production of the set of tires does not included on the GDP as it is referred to as an intermediate goods which are used to produce the final product (which is the two door coupe, in this case).
Explanation:
Gross domestic Production (GDP) represent the total production of a nation within its domestic borders. Some of the items that are excluded in GDP include: sales of goods that were produced outside the domestic borders of the country, intermediate goods that are used to produce other final goods, sales of used goods, illegal sales of goods and services (black market) and transfer payments made by the government