The crusades, fought on the basis of religion occurred in the continent of

Why do lenders require collateral for a secured loan? (10 points)

Vanyuwa [196]

Answer:

A) It reduces risk to the lender

Explanation:

Collateral refers to a valuable asset that a borrower offers to the lender to secure a loan. Typically, the collateral will have a higher market value than the loan amount. Asset mostly used as collateral include homes, properties, and motor vehicles. The lender will keep custody of the title documents until the borrower repays full amount borrowed.

Offering collateral for a loan indicates the borrower's willingness to repay the loan. The lender is assured of recovering their money. If the borrower defaults, the lender will dispose of the collateral to recover their money. This reduces the lender's risk.

6 0

2 years ago

Suppose the Federal Reserve purchases a $100,000 bond from John Doe, who deposits the proceeds in the Manufacturer's National Ba

timurjin [86]

Answer:

Explanation:

I hope you get a second answer to this so I can see what the actual answer is. My guess is that the Federal Reserve has just put money into the system by purchasing Doe's bond. The fact that Doe puts it in a bank account does not change the fact that we are uncertain where the Feds got the money to buy the bond. They have the power to print money. They've just used some of that printed money to buy something that might be of value.

8 0

3 years ago

ENIAC was the first instance of what?

OLga [1]

ENIAC - Electronic Numerical Integrator And Computer - was the first electronic general-purpose computer.

7 0

3 years ago

Read 2 more answers

On January 1, 2016, Gless Textiles issued $24 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30

Mashutka [201]

Answer and Explanation:

The Journal entries are shown below:-

1. Convertible bonds payable Dr, $3,600,000

Premium bonds payable Dr, $16,200

To common stock $3,616,700

(Being conversion of the bonds is recorded)

Working note:

Issue price of the convertible bonds $3,636,000

($24,000,000 × 15% × 101%)

Less: Par value of the bonds $3,600,000

($24,000,000 × 15% × 100%)

Premium on bonds payable $36,000

less: Premium on bonds payable

amortized $19,800

($26,000 × 11 ÷ 20)

Available Balance $16,200

2. Investment in common stock Dr, $3,616,200

To Investment in convertible bonds $3,616,200

To Premium on bond investment $16,200

(Being conversion of the bonds is recorded)

7 0

3 years ago

Below are several amounts reported at the end of the year.

Zarrin [17]

Answer:

Calculation of the amount of cash to report in the balance sheet

Particulars Amount

Currency located at the company $800

Short-term investments that mature $1,700

within three months

Balance in savings account $7,500

Checks received from customers $400

but not yet deposited

Coins located at the company $100

Balance in checking account <u>$5,200</u>

Cash at the end of the year <u>$15,700</u>

Thus, the amount of cash to report in the balance sheet is $15,700,

Note: Supplies ,account receivables and prepaid rent are current asset of the company other than cash. Equipment are non cash

3 0

3 years ago