,Know federal reserve when engages in contractionary monetary policy?,
What are assets on a balance sheet or financial intermediary?
,
How may a bank reduce default risk ?
What will happen to the income gap
,Know the relationship interest rates and income gaps
What are assets on a balance sheet?
Things .that are resources owned. by a company. and which have a future. economic value that can. be. measured and can. be expressed in dollars. Examples .include cash, investments, accounts. receivable, .inventory, .supplies, land, .buildings, .equipment, and .vehicles
Assets = Liabilities. + Owner's .(Stockholders'). Equity.
How may a bank reduce default risk?
Bank can .reduce default. risk by .taking protection from .the .borrower .in advance, monitoring the. borrower during loan agreement., the collection of .nonperforming loans
The relationship between interest rates and income gaps?
Low-interest rates tend to .increase the income gap. lower interest rates .have more benefits for the rich as compared to the .poor therefore the .income gap will increase.
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