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3 years ago

Banks make a profit by __________.

2 answers:

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Banks make profit by making loans at a higher interest rate than it costs them
to obtain the money charging fees for their services,
investing in government securities, and
paying a higher interest rate than they pay their depositors. Therefore, the correct answer would be all of the above, the last option.

Tomtit [17]3 years ago

4 0

Answer:

The answer is: 1. Make loans at a higher interest rate than it costs. 

2.- To obtain the money that charges fees for their services. 

3.- Invest in government securities.

Explanation:

The fundraising operations, called passive operations, are materialized through the deposits.

1.- The banks generate new money from the money or the resources that they obtain through the collection and, with these, they grant credits to the people, companies or organizations that request them. For giving these loans the bank charges, depending on the type of loan, amounts of money called interest and commissions.

2.- At present, the change in the needs of companies, families and institutions, has led the banking activity to the services, which become its main source of income.

3.- Banks are also the main participants in the government stock market.

The answer is: 1. Make loans at a higher interest rate than it costs. 

2.- To obtain the money that charges fees for their services. 

3.- Invest in government securities.

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Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to maturity. These bonds have a 9

murzikaleks [220]

Answer:

d. 5.08%

Explanation:

We have to first calculate the YTM of the bond, and then apply the tax shield.

To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.

$C \times \frac{1-(1+r)^{-time} }{rate} +Face\:Value/(1+rate)^{time}= PV\\$

$46.25 \times \frac{1-(1+IRR/2)^{-20*2} }{rate} + 1000/(1+IRR)^{20}= 1075\\$

IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)

then we apply the shield tax to the IRR:

IRR x (1 - tax-rate) = Cost of debt

0.084656891 * ( 1 - 0.4) = 5.0794= 5.08

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3 years ago

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bonufazy [111]

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2 years ago

In regards to a Construction Management Class:

makkiz [27]

It can influence it to be better

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3 years ago

Read 2 more answers

Sally would only agree to a second date with Andy if she sees him leave a generous tip for the waiter on their first dinner date

Nikitich [7]

Answer:

The correct answer is letter "A": Screening mechanism.

Explanation:

The screening mechanism is the activity in which people identify good qualities in others by evaluating their actions and matching them with their own behavior so they can eventually qualify those other people as suitable for them or not.

In the example, Sally must consider a good practice to give generous tips to waiters since only if Andy, her date, does such a thing, she will consider dating him again. What Sally conducted is an example of a screening mechanism.

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3 years ago

Read the following sentence, remove the bold portion that would make the sentence more concise: When the scientists added the f

LiRa [457]

Answer:

The correct answer is letter "C": in color.

Explanation:

In order to make a sentence more concise, it is better to avoid redundancies, it is setting aside words that have a similar meaning within the same segment. Redundancies are typically useful for literature when the author wants to emphasize the meaning of something. Though, when talking about scientific facts, it is better not to use them because they tend to confuse the meaning of the message delivered. In:

When the scientists added the final chemical into test tube, the malodorous liquid turned green in color.

"...in color" does not add meaning to the message. If something turns green it is understood that the color has changed. Thus, to make more concise the sentence we should delete it.

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3 years ago