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taurus [48]
3 years ago
9

Why might a bank offer to make a loan to a customer at a low initial rate that will increase after a set period of time?

Business
2 answers:
erica [24]3 years ago
3 0
To make the loan look more attractive and competitive now
marysya [2.9K]3 years ago
3 0

Why might a bank offer to make a loan to a customer at a low initial rate that will increase after a set period of time?

To make the loan look more attractive and competitive now.

When you apply for a loan, it's important to look at the terms and conditions. Just because the interest is low at the beginning, if not paid off quicker than the full term, it may go up increasing the amount being paid in interest over principle. When a bank offers a low initial interest rate, it's very attractive for a consumer who really needs to the loan to take it almost forgetting or being blind to the fact it will increase astronomically and basically even out to a set rate that's higher from the beginning.

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Yum! Brands is the result of a spin-off by PepsiCo, where it sold its fast-food chains KFC, Taco Bell, and Pizza Hut. Do you con
faust18 [17]

Answer:

Yes, the spin off was successful.

With the major segments of fast food being sandwich chains, pizza chains, family restaurants, dinner houses, chicken chains, and more each Yum restaurant needed to be placed into their own niche. They also started using multi-branding and putting the brands in the same building. This allowed one location to draw in a more diverse crowd of consumers while offering them more variety and covering the other brands weak points.

Reason for their success.

PepsiCo, when spinning off these fast food chains, openly stated “restaurants weren't our schtick.” I.e the company presented themselves themselves to media that restaurants isn't focus. Before the spin off KFC, Pizza Hut, and Taco Bell often acted as their own entities and competed with each other resulting in lowered sales for all of the restaurants. With the spin off of Tricon the restaurants were unified with the sharing of many resources and using their collective clout, as one of the top five brands, to get better deals on ingredients all the restaurants share. Their concentrated focus allows them to be greatly effective in entering new markets such as Asia

7 0
3 years ago
How much do alcohol related crashes cost Florida every year
maksim [4K]

Explanation:

Total more than $44 million

hope it is helpful to you

8 0
3 years ago
Read 2 more answers
According to the long-run Phillips Curve:
Oxana [17]

Answer:

c. fiscal and monetary policies that impact aggregate demand do not impact the natural rate of unemployment.

Explanation:

Short run Philips Curve is downward sloping, due to inverse relationship between unemployment rate & inflation rate. High economic activity implies more inflation rate, less unemployment. Low economic activity implies less inflation rate, more unemployment.

However, the inverse relationship between inflation & unemployment is only in short run & not in long run. In long run, this inflation - unemployment trade off doesn't exist. So, any fiscal or monetary policy affecting aggregate demand & consecutively inflation rate, do not affect the natural rate of unemployment (combination of frictional & structural unemployment rate) in long run.

7 0
3 years ago
HURRY IM BEING TESTED!!!!!! Which job in the Finance career cluster is ideal for a person with a master’s degree?
erma4kov [3.2K]

Answer:

i think it would be loan officer but im not sure sorry if thats wrong

4 0
3 years ago
Read 2 more answers
Record the entry to close the income summary assuming the partners agree to use plan c and net income is $460,500
slava [35]

The entry is record in book as

Date Particular                L.F.     Dr. Amt.        Cr. Amt.

Income summary a/c             $460,500  

To Mo a/c                                          $69,300

To Lu a/c                                          $269,500

To Barb a/c                                          $431,200

What is net income?

The total amount of firm profit after deducting all taxes, costs, and interest is referred to as "net income."

Particulars                 Mo           Lu                 Barb

Capital invested        $69,300    $269,500  $431,200

Profit sharing ratio 20/100   40/100         40/100

Profit ($460,500)         92100    184200 184200

As a result,  Mo is  92100;  Lu is 184200; Barb is 184200 as profit.

Learn more about on net income, here:

brainly.com/question/15570931

#SPJ 1

4 0
2 years ago
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