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Luba_88 [7]
2 years ago
12

How a bank gets its money quizlet?

Business
1 answer:
timurjin [86]2 years ago
5 0

The spread, or the difference between the interest rates they pay on deposits and the interest rates they get on loans they make, is how they generate revenue. On the securities they own, they receive interest.

Diversified banks generate revenue in a variety of ways, but at their foundation, banks are thought of as lenders. Banks typically generate income by borrowing funds from depositors and paying them back at a predetermined interest rate. By charging the borrowers a higher interest rate and making money off the interest rate spread, the banks will lend the money to borrowers.

Furthermore, banks typically diversify their lines of business and make money through nontraditional financial services like investment banking and wealth management. However, the following categories can roughly be used to describe the money-generating activities of banks:

interest income

revenue from capital markets

fee-based revenue

To know more about Banks, refer;

brainly.com/question/14716224

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timofeeve [1]

A dollar in the present day is worth less than that of the dollar in the future, because of returns generated over reinvestment.

<h3>What is reinvestment?</h3>

A process of investing something, which is invested more than once after generating returns over it, is known as a reinvestment. A currency is the most widely reinvested class of asset, and generally its value appreciates.

Hence, the significance of reinvestment is given above.

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3 years ago
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Nonamiya [84]
In the scenario in which both Lloyd and Harry are claiming patent protection for the same invention that each independently created, the rights to protection will be awarded to <span>the one who actually completed the invention first.</span>
This follows from the American standard which states that the "first-to-invent" is awarded the patent.

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The price/sales multiple is typically only used for the valuation of firms without earnings. true false
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The main purpose of price/sales multiple ratio is typically only for the purpose of valuation of firms having no earnings till the date of valuation. Therefore, the given statement holds true.

<h3>What is the significance of Price/Sales ratio?</h3>

Price/Sales ratio can be referred to or considered as a ratio that is used to determine the total sales made by the company without earning any profits over their sales at a given price.

Investors use this ratio in order to valuate a firm based on the sales they have made in multiples, however without earnings, that can prove to derive good investment returns in the future.

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