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1 year ago

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

1 answer:

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.

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2. Why do many employers fail to adequately socialize or orient their new hires to the organization?

frez [133]

Many employers fail to adequately socialize or orient their new hires to the organization because they are usually busy with and it takes lot of effort to do.

<h3>Who is an employer?</h3>

It should be noted that an employer simply means an individual who pulls resources together to achieve a goal. He's the owner of the business.

In this case, many employers fail to adequately socialize or orient their new hires to the organization because they are usually busy with and it takes lot of effort to do.

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2 years ago

You have been at fault in your second accident in six months. your insurance company is going to increase your annual premium by

yawa3891 [41]

Your adjusted premium based on a current annual premium of $975, increased by a 28% penalty for being at fault in the second accident in six months, is <u>$1,248</u>.

<h3>What is the annual premium?</h3>

The annual premium is the amount that a policyholder pays to the insurance company for a one-year insurance policy.

The annual premium helps to guarantee payment of indemnity when the covered events occur.

This implies that the annual premium is a periodic contribution that helps in the pooling of risks by the insured to help the insurer meet its indemnity obligations.

<h3>Data and Calculations:</h3>

Current annual premium = $975

Increase in annual premium = 28%

Adjusted premium = $1,248 ($975 x 1.28)

Thus, the adjusted premium based on a current annual premium of $975, increased by a 28% penalty for being at fault in the second accident in six months, is <u>$1,248</u>.

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6 0

2 years ago

Brand socialization is a measure of how effectively ______. a. a company’s brand reinforces a positive relationship between the

oee [108]

Answer: Option (B)

Explanation:

From the given options we can state that , option (B) is correct. Brand socialization is referred to as or known as the measure or scale of how effectively an organization or a company tends to engage with its several or various stakeholders which are mostly online and act in mutual profitable and beneficial exchange of data and information.

5 0

3 years ago

When museums charge a lower admission fee to students and senior citizens, this form of pricing is known as ________. third-degr

stellarik [79]

<span>When museums charge a lower admission fee to students and senior citizens, this form of pricing is known as price discrimination.

Price discrimination is a way of changing the prices for something based on time of day, amounts sold, or who they are sold to. This type of discrimination is done to try and maximize profits in the largest way possible. </span>

6 0

3 years ago

Read 2 more answers

Multiple Choice Question 121 The following information pertains to Ortiz Company. Assume that all balance sheet amounts represen

olasank [31]

Answer:

Inventory TO 5.5

This means Ortiz sales his inventory 5.5 times per year.

Explanation:

Inventory turnover for Ortiz

$\frac{COGS}{Average Inventory} = $Inventory Turnover$