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2 years ago

Explain how banks have transformed their commercial lending business from asset transformation to brokerage services

1 answer:

6 0

Asset transformation by financial intermediaries is the purchase of a primary asset or securities and their transformation into other assets in terms of risk and maturity.

A type of transformation where banks use deposits (mobilized funds) to generate income by pooling deposits to provide loans. More precisely, asset transformation is the process of converting bank liabilities (deposits) into bank assets (loans). Deposits are inherently subject to withdrawal by customers (depositors) at any time or as set out in the deposit contract/agreement. Loans are bank assets because they represent money that the bank lends and expects to receive back in the form of repayment of principal and interest. As such, banks perform asset transformation by providing long-term and short-term loans, with the interest differential being their transformation returns. Banks and other financial institutions usually perform asset transformation by offering their customers various financial products on both sides of the balance sheet, such as deposits, investment and loan products, etc.

Learn more about risk and maturity.

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A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant paid 1 month's rent and got a receip

sineoko [7]

A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold goes the tenant have holdover tenancy

A holdover tenant is a tenant who continues to occupy a rental after the lease has ended. The holdover tenant can continue to occupy the property legally if the landlord accepts rent payments; the length of the holdover renter's new rental term is determined by state legislation and court decisions. The tenant is seen to be trespassing if the landlord refuses to accept any additional rent payments, and if they do not leave right away, an eviction may be required.

A holdover tenant is one who keeps making rent payments after the lease has ended. To avoid starting eviction procedures, the landlord must also concur.
In a murky space between a full rental agreement and trespassing, holdover tenancy exists. All parties are better protected by even a one-sentence agreement, thus it should be taken into consideration.
The month-to-month rental clause that is found in the majority of lease agreements frequently eliminates this problem.

Learn more about holdover tenancy here

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6 0

1 year ago

Wally and Sally want to go into business together and plan on offering a tutoring service to high school and college students. W

sashaice [31]

Answer:

A. Yes, because the corporation would be required to pay tax on its profits, and the shareholders would also be required to pay taxes on dividends

4 0

3 years ago

On October 1st Joe charged $900 to his credit card, on October 10th he charged another $1,300 to his credit card, and on October

poizon [28]

Answer:

interest expense for October $ 27.25

Explanation:

900

+ 1,300 x 20/30

1,816.67 average balance

Now we multiply this average balance by the interest rate of the credit card:

1,816.67 x 0.18/ 12 = 27.25

4 0

2 years ago

An oil refinery is located on the north bank of a straight river that is 3km wide. A pipeline is to be constructed from the refi

Mariulka [41]

Answer:

$6,598,076.21

Explanation:

<h2>THE KEY IS TO FIND OUT THE COST FUNCTION, the calculations are very easy!!!</h2><h2></h2><h3>In order to find the cost function, take a look at the drawing attached. </h3>

We can see the river (sort of) that is 3 km wide and the storage tanks on the other side of the river 8 km apart.

<h3 />

Laying pipes under (across) the river costs 1,000,000 the km & laying pipes over land costs 500,000 per km.

<h3 /><h3>So basically the cost function is 1,000,000 multiplied by something plus 500,000 multiplied by another something.</h3><h3 />

The distance across the river can be found by using Pythagoras Theorem. A side is 3 km the other is unknown, so we call it X. And it is equal to:

$\sqrt{3^{2} +x^{2}}=\\\sqrt{9 +x^{2}}$

And we multiply it by 1,000,000; the cost of laying pipe under the river, the we get:

$1000000\sqrt{9+x^{2}$

The distance over the land is (8-x), as we can see in the drawing. So we multiply it by its cost, 500,000. And we get 500,000(8-x).

So the cost function f(x) would be:

$f(x)=1000000\sqrt{9+x^{2}} + 500000(8-x)$

<h2>From here, we just have to differentiate and the derivative found must be equal to zero in order to minimize cost. </h2><h3>The value of x when the derivative is zero is plugged in the original function to get the cost.</h3><h3 /><h2>LET'S DO THIS</h2>

$f(x)=1000000\sqrt{9+x^{2}} + 500000(8-x)\\f(x)=1000000(9+x^{2})^{1/2}+4000000-500000x\\f'(x)=\frac{1}{2} 1000000(9+x^{2})^{-1/2}(2x)-500000\\\\f'(x)=\frac{1000000x}{\sqrt{9+x^2}} - 500000$

$f'(x)=\frac{1000000x}{\sqrt{9+x^2}} - 500000=0\\\frac{1000000x}{\sqrt{9+x^2}} = 500000\\\frac{2x}{\sqrt{9+x^2}} = 1\\2x={\sqrt{9+x^2}}\\4x^2=9+x^2\\3x^2=9\\x^2=3\\x=\sqrt{3} \\$

And we plug square root of 3 in the original cost function ad we get

$f(\sqrt{3} )=1000000\sqrt{9+x^{2}} + 500000(8-x)\\f(\sqrt{3})=1000000\sqrt{9+(\sqrt{3} )^{2}} + 500000(8-(\sqrt{3}))\\f(\sqrt{3})=1000000\sqrt{9+3} + 500000(8-(\sqrt{3}))\\f(\sqrt{3})=1000000\sqrt{12}+500000(6.27)\\f(\sqrt{3})=1000000(3.46)+500000(6.27)\\f(\sqrt{3})=3464101.62+3133974.60\\f(\sqrt{3})=6598076.21\\$

<h2>so the minimal cost is $6,598,076.21</h2><h2 /><h3 />

6 0

3 years ago

Candy Claws Company gathered the following reconciling information in preparing its August bank reconciliation: Cash balance per

Alchen [17]

Answer:

c. $23,160

Explanation:

Adjusted cash balance per books as at August 31

Cash balance per book $19,500

Add Notes receivable and interest collected by bank $4,800

($19,500+$4800) $24,300

Less:(Deposits in transit $900

-NSF check 1,020) ($120)

NSF check (1,020)

Cash balance per books $23,160

6 0

3 years ago