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Citrus2011 [14]
2 years ago
13

Commercial banks are funded through which of the following?

Business
2 answers:
Artemon [7]2 years ago
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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andrey2020 [161]

Answer:

14.06%

Explanation:

Assume their is a cash out flow today of $100000, and next four year annual cash inflow of 10000 and 120000 at the end of year 4.

We can use IRR formula to find the interest rate.

year                            cashflow

0                                   -100000

1                                      10000

2                                     10000

3                                     10000

4                                     130000

IRR                                 14.06%

The calculation has been done on excel sheet

8 0
3 years ago
The reported net incomes for the first 2 years of Sarasota Products, Inc., were as follows: 2020, $155,500; 2021, $188,100. Earl
Phoenix [80]

Answer:

Dr retained earnings($21,600+$15,800) $37,400.00

Cr  accumulated depreciation                                         $21,600

Cr inventory                                                                       $15,800

Explanation:

The errors that require adjustment are the overstatement and understatement of depreciation expense as well as the December 2021 overstatement of inventory.

The understatement of inventory in 2020 would have self-corrected itself in 2021 since closing inventory in 2020 deducted from costs of goods available  for sale would be introduced as opening inventory in 2021.

net effect of depreciation=understatement -overstatement=$37,500-$15,900=$21,600.00

hence retained earnings would reduce by $21,600.00

for the overstatement of inventory,retained earnings would reduce by $15,800

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2 years ago
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Answer:

$25,000 increase

Explanation:

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Direct Materials                                                                    $150,000.00

Direct Labor                                                                          $240,000.00

Inspecting products                            60,000 x 0.90              $54,000.00

Providing Power                       30,000 x 0.90                      $27,000.00

Providing Supervision           40000 x 0.60                              $24,000.00

Setting up Equipment                    60000 x 0.50              $30,000.00

Moving Materials                           20,000 x 0.50               $10,000.00

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Buying Cost                                  (20000 x 25.50)             $510,000.00

Incremental Saving by Purchase ( $535000-$510000)      $25,000.00

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