Which was likely not significant factor in collapse of bear

Assignment Help Accounting Basics
Reference no: EM132809446

Problem 1: Which of the following was likely not a significant factor in the collapse of Bear Stearns and Lehman Brothers in 2008?

a. The banks had too much short-term financing (e.g. must be "rolled" every week or month), to reduce costs compared to borrowing more funds for longer terms (e.g. 2 to 10 years)

b. The banks' high leverage ratios of debt / equity

c. None of these banks' short-term funding sources were as stable as FDIC insured deposits, as they did not have consumer deposit taking businesses

d. These banks' equities and commodities trading desks traded highly volatile securities and derivatives

Reference no: EM132809446

Questions Cloud

What is advice to greg : Rental expenses will be negligible. What is your advice to Greg? Greg Jones lives in Augusta, Georgia and has the opportunity to rent his condominium
When should elect to receive the income : Assume If the taxpayer faces a marginal tax rate of 31 percent in both Year 1 and Year 2, when should he elect to receive the income?
Which interpretation would expect each party to prefer : $51,726 with 6 percent interest and (2) a price of $39,380 with 18 percent interest. Which interpretation would you expect each party to prefer? Why?
Identify four sources of energy available in kenya : 1. Discuss at least four factors that may limit an individual ability to satisfy his basic wants 2. Identify four sources of energy available in Kenya
Which was likely not significant factor in collapse of bear : Which was likely not a significant factor in the collapse of Bear Stearns and Lehman Brothers in 2008? The banks' high leverage ratios of debt / equity
Dictionary of occupational titles : Choose your current job or a future job and a sample job announcement including the job description, tasks, duties, and responsibilities.
What is the difference between the two laws : This week of class we focus on the Americans with Disabilities Act (ADA).
Advantages and disadvantages of childhood temperament : Tell the advantages and disadvantages of childhood temperament. For example, who gets held more often, an "easy" or a "difficult baby"?
What the tax base of the asset is : The accumulated depreciation for tax purposes is $360 000 and the company tax rate is 30%. What The tax base of this asset is:

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd