The Following Questions Apply to the Following Simplified Bank Balance

question 12

Multiple Choice

The following questions apply to the following simplified bank balance sheet

-The Bank above suffers a 15% fall in the value of its loans.It is now

• A) in a position where none of its creditors will get any of their money back
• B) effectively bankrupt and depositors stand to lose money
• C) effectively bankrupt but depositors can be paid off
• D) effectively bankrupt but depositors and subordinated debt holders can be paid off
• E) still a viable enterprise but with dramatically reduced capital

Describe network externalities and their impact on market outcomes.

Interpret graphical representations of marginal private and social benefits and costs.

Understand the concepts of private and external benefits in the context of public goods and common resources.

Analyze the economic implications of policies designed to correct for positive externalities.

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Definitions:

Wilcoxon Signed Rank Test

A non-parametric statistical test used to compare two paired groups to find out if their population mean ranks differ.

Triglyceride Levels

The concentration of triglycerides, a type of fat found in your blood, which is an indicator of heart health and metabolic function.

Null Hypothesis

In statistics, it is the default or initial presumption that there is no effect or no difference, often symbolized as H0.

Alternative Hypothesis

A statistical hypothesis that proposes a difference or effect, in contrast to the null hypothesis which suggests no effect or relationship.