A bank has the following assets in its portfolio: $10,000 cash and $40,000 illiquid assets. The liability consists of deposits of $4,000 each in 10 demand deposit accounts. There is a rumour about the solvency of the bank caused all 10 depositors to line up outside the bank to demand withdrawals. Assume that the illiquid assets of the bank can only be liquidated at a 75% discount (i. e. at 25% of the current value) and there is no deposit insurance and minimum reserve requirement. Further assume that borrowing is impossible for the bank. Which of the following statement(s) about what will happen is (are) correct? a. The first 5 depositors in the line will each get $4,000 back and the last 5 depositors will get nothing back.
b. The 10 depositors will each get $2,000 back.
c. The equity holders in the bank will get their $10,000 capital back.
d. The first 2 depositors will each get $4,000 back, the third one gets $2,000 back and the rest of the depositors get $0 back.
e. None of the 10 depositors will get the deposit back.

The owners of backstreets italian restaurant are considering starting a delivery service forpizza and their other italian dishes in the small college town where they are located. theycan purchase a used delivery van and have it painted with their name and logo for $21,500.they can hire part-time drivers who will work in the evenings from 5 p. m. to 10 p. m. for$8 per hour. the drivers are mostly college students who study at the restaurant when theyare not making deliveries. during the day, there are so few deliveries that the regular employeescan handle them. the owners estimate that the van will last 5 years (365 days per year)before it has to be replaced and that each delivery will cost about $1.35 in gas and othermaintenance costs (including tires, oil, scheduled service, they also estimate that onaverage each delivery order will cost $15 for direct labor and ingredients to prepare andpackage, and will generate $34 in revenue. a. how many delivery orders must backstreets make each month in order for the service to break even? b. the owners believe that if they have approximately the break-even number of deliveries during the week, they will at least double that number on fridays, saturdays, and sundays. if that’s the case, how much profit will they make, at a minimum, from their delivery service each month (4 weeks per month)?

The market for corn in country a is highly competitive. at the current market price of $5/bushel there is a shortage of 100,000 bushels of corn in this country. media reports claim that the price of corn will rise drastically in the near future. according to these reports, the neighboring country b had witnessed a similar situation recently. at the same price, the shortage in country b was also 100,000 bushels and eventually the equilibrium price in b went up to $10/bushel. both countries are known to have equal number of corn producers and the market supply of corn is identical at all prices. this, combined with the fact that consumers in the two countries also have similar tastes and preferences, led the media to conclude that the price of corn in country a would soon be as high as $10/bushel. the new equilibrium price turns out to be below $10/bushel, what inferences can be drawn?

Why do police officers get paid less than professional baseball players?