What makes enforcing safety standards a challenge for the FDA?
Answer Expert Verified. What makes enforcing safety standards a challenge for the food and drug administration is that many foods are imported from other countries, and the FDA must ensure those foods meet the same standards as US goods.
Which are results of regulation in a mixed-market economy?
Answer Expert Verified. The results of the government regulation in a dual economy or mixed-market economy are; compliance with laws, whuch are needed to protect the consumers and producers in the market. Also, advantages for producers and advantages for goverment are associated with the regulation.
What is the purpose of a regulation?
The primary regulatory purpose is defined as the achievement of quality control of a subject system, its process or its product. Quality control via regulation is achieved through one or a combination of approaches: (1) accountability, (2) organizational development, (3) protectionism.
What matters most during a bank run is?
Depositors will rush to the bank to withdraw their deposits and the bank under normal situations would not have sufficient liqued assets on hand. What matters most during a bank run in: A. the number of loans outstanding.
What does Too Big to Fail mean in banking?
Too big to fail (TBTF) is a doctrine postulating that the government cannot allow very big firms (particularly major banks and financial institutions) to fail, for the very reason that they are big.
What have bank regulators done about this problem if anything?
What have bank regulators done about this problem (off-balance sheet activities), if anything? Bank regulators have imposed an additional risk-based bank capital requirement.
What special problem do off balance sheet activities present to bank regulators?
What special problem do off-balance-sheet activities present to bank regulators, and what have they done about it? The off-balance-sheet activities create problems for financial institutions. The off-balance -sheet activities do not disclose the present financial position of banks.
Would a bank run happen today?
So yes, a bank run could happen today. But it would be dealt with far more swiftly, and with far less damage to depositors than in the 1930’s.
Why is a bank run so difficult to stop?
As a bank run progresses, it generates its own momentum: as more people withdraw cash, the likelihood of default increases, triggering further withdrawals. This can destabilize the bank to the point where it runs out of cash and thus faces sudden bankruptcy.
Why are banks limiting withdrawals?
Because financial institutions only keep a fraction of their bank deposits on hand in cash, all banks impose daily limits on how much money their customers can withdraw from checking accounts through ATMs, as well as how much money they can spend using debit cards.
What happens if everyone withdraws their money from banks?
Depositors rush to withdraw money before the bank shuts down; the bank exhausts its cash reserves; and the bank then liquidates assets and calls in loans to find more money. If the bank can’t sell enough assets to cover the withdrawals, it may have to close.
How do you explain a large deposit?
What is a large deposit? A “large deposit” is any out-of-the-norm amount of money deposited into your checking, savings, or other asset accounts. An asset account is any place where you have funds available to you, including CDs, money market, retirement, and brokerage accounts.