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2 years ago

Commercial banks are funded through which of the following?

2 answers:

3 0

A. Commercial banks lend mi way to consumers in the form of car loans, mortgages and personal loans. The money distributed for these loans comes from deposits of other bank customers.

jeyben [28]2 years ago

3 0

Commercial banks are funded through customer deposits (A). Customer deposits are gotten from commercial bank’s services such as checking account services, offering basic financial products, and making various loans.

EXPLANATION :

Commercial banks earn money from services such as offering loans and earning income from the loan. Commercial banks’ types of loans are various. It may include auto loans, mortgages, personal loans, and business loans. Such a commercial bank might run the business in just one or several types of those loans.

To be able to offer various loans, commercial banks benefit from customer deposits such as CD’s, checking accounts, and savings accounts. The customers who save and deposit their money, actually the same to lending money to the bank with interest as the payment or rewards. Nevertheless, the interest rate paid by the bank for the money they borrow from the customers is less than the rate charged on the money they lend.

If you are curious about commercial banks source of fund, here are some products offered by the banks to collect customers deposits:

• Project finance

• Industrial loans

• Leasing

• Foreign trade financing

• Syndicated loans

• Bill of exchange

• Debit cards

• ATM cards

• Traveler’s cheques

• Home quality loans, and many more.

LEARN MORE

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

1. The difference between the function of Central Bank and commercial bank? brainly.com/question/4342079

2. The federal Reserve Bank of the United States is also knowns as the? brainly.com/question/11176249

KEYWORDS: Commercial bank’s fund, commercial bank’s funding

Subject: Business

Class: 10-12

Subchapter: Commercial bank’s fund

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1 year ago

All the occupation are equally important how and why .

sveticcg [70]

It is true that some jobs require more training and experience than others. Also, that some jobs carry more responsibility, pay more, and have greater status.

But that doesn’t mean one job is more important than another.

In an organization, everyone matters and no one should look down upon someone for the work they are doing.

Remember, every job should be valued. And, every person should be treated with dignity and respect.

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2 years ago

Last year mike bought 100 shares of dallas corporation common stock for $53 per share. during the year he received dividends of

Pepsi [2]

Mike brought 100 shares costing $53 each.
Total costs of shares= 100*53
=$5300

He got dividends of $1.45 per share. A dividend is money that is earnt back from a share.
Total dividend amount = 1.45*100
=$145

I'm assuming that Mike sold his shares at the end of the year. He sells for $60 each.
Total sales amount=60*100
=$6000

The rate of return in this instance can be defined as the amount of money made back from a share.

Rate of return= total earnings/ costs

Total costs= $5300
Total earnings=$6145

6145/5300=1.1594
=15.9%

Hope this helps! :)

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3 years ago

describe the difference between autonomous expenditure and induced expenditure. Which sectors of the economy are assumed to have

Vika [28.1K]

Answer:

The difference between autonomous expenditure and induced expenditure is as follows:

The autonomous expenditure is incurred even without a disposable income. The expenditure is incurred to provide basic necessities of life. In such a situation, the person spends from savings account or borrows to ensure that the basic necessities are provided.

On the other hand, induced expenditure is a disposable income-based expenditure. This implies that when disposable income rises, induced expenditure also rises, and vice versa. Induced expenditure is usually incurred to fund normal goods and services and not necessities. Without disposable income, there is no induced expenditure.

All the four sectors of the economy engage in these expenditures. The public (government) and household sectors are mostly affected. However, even the business and non-profit sectors are also affected by these types of expenditure.

Explanation:

We can distinguish between two types of aggregate expenditure. The first one is autonomous aggregate expenditure, which does not vary with the level of real GDP while induced aggregate expenditure varies with real GDP.

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2 years ago

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3 years ago