The rest of the question?
Answer:
The main function of COMMERCIAL banks is to accept deposits and then to lend the same money (minus REQUIRED RESERVES) back out. Banks make a profit by charging a higher interest rate on LOANS than the interest rate they pay on DEPOSITS. Through the loan process, banks are actually able to CREATE/MULTIPLY money.
Explanation:
Commercial banks are financial institutions that engages in accepting deposits from the general population and giving back loans for investment in the sole aim of making profits.
Required reserves is the amount of money a bank must hold in order to meet liabilities when there are sudden withdrawals.
Loans are money borrowed out by a financial institution in exchange for the repayment of the loan plus interest.
Deposits are the total amount of money paid into the bank.
Money creation refers to the increase in amount of money supplied from initial deposit.
Answer:
1. 26%
2. YES
3. $410,000
4. $250,000
Explanation:
1. Return on Assets = Net Profits/ Total Assets = 65,000/250,000 = 26%
2. Return on Assets should be beyond satisfactory for Kyzera because its performance is better than that of the industry average which is 12%
3. Total expenses for Kyzera can be derived from the formula: Total Revenue - Total Expenses = Net Profit.
Therefore 475,000 - Total expenses = 65,000.
Total expenses = 475,000 - 65,000 = $410,000
4. The average total amount of liabilities plus equity can be derived from the balance sheet equation that states that TOTAL ASSETS = EQUITY+LIABILITIES.
Therefore liabilities plus equity = $250,000
Well the could put advertisements and coupons in the news papers to get people to know about there company more. or they could invest in other products and hope it helps them to make there business better, they could also read up on books and strategies for company's so they can steal there customers back. Sorry if my answer is all over the place.
