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mestny [16]
1 year ago
8

Where do financial institutions get the funds that they lend to customers?

Business
1 answer:
Anon25 [30]1 year ago
3 0

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.

Banks obtain savings from individuals and companies (savers) and use these resources to issue loans to others who need money (borrowers). One of the biggest funding expenses for banks is the interest they must pay on the money they receive from savers.

Finance companies make money by selling securities, primarily commercial paper, to other companies, including banks, in the money market. They then lend the money to people or corporations at an interest rate that is higher than what they pay on their securities.

To learn more about Banks

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What was the purpose of the movie duck and cover ​
Alex73 [517]

Duck and Cover, which came out in 1952, an instructional short aimed at school-aged children of the early 1950's that combines animation and live action footage with voice over narration to explain what to do to increase their chances of surviving the blast from an atomic bomb.

3 0
3 years ago
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Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally
lina2011 [118]

C. A Novation

In contract law, a novation is the cancellation of one contract and replacing it with another contract.

7 0
3 years ago
A decentralized organizational structure is predicated on a belief that A. decision-making authority should be put in the hands
Rzqust [24]

Answer:

A. decision-making authority should be put in the hands of the people closest to and most familiar with the situation, and these people should be trained to exercise good judgment.

Explanation:

A decentralized organization can be defined as one whose decision-making process is not only in the hands of top management, that is, in this type of decision making, employees of lower hierarchical levels also participate in essential company decisions, therefore the alternative best suited to the beliefs of a decentralized organizational structure is that decision-making authority should be placed in the hands of the people closest to and most familiar with the situation, and these people should be trained to exercise common sense.

Some factors that contribute to this type of structure are the organizational culture, the work environment, the organizational strategy, etc.

Some of the advantages of decentralization are the reduction of time for an important decision and the engagement of the team of employees to assist in the decision-making process, which consists of greater motivation and job satisfaction

8 0
3 years ago
The Constitution sets forth specific powers that can be exercised by the national government and provides that the national gove
jasenka [17]

Answer:

All other powers are reserved by the states under the tenth amendment. So in the USA, national government according to the constitution has the specific powers that it can use to deliver best to the people. These powers are delegated to national government because they are elected by the people of USA and owe a duty of care to them by giving them powers to act in their best interest.

6 0
3 years ago
What is the present value of the following series of cash flows discounted at 12 percent:
Ksju [112]

Answer:

The present value of the following series of cash flows discounted at 12 percent is:

$171,890

Explanation:

a) Data and Calculations:

Discount rate = 12%

$40,000 now;

$50,000 at the end of the first year;

$0 at the end of year the second year;

$60,000 at the end of the third year; and

$70,000 at the end of the fourth year

Future Value  Discount Factor   Present Value

$40,000                 1                      $40,000

$50,000                 0.893             $44,650

$0                           0.797              $0

$60,000                 0.712              $42,720

$70,000                 0.636             $44,520

Total present value                      $171,890

b) The present value is the discounted cash flow from series of future cash flows.  The discount factor is applied to the individual cash flows, based on the number of years before the cash flow occurs.

6 0
3 years ago
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