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A repo is basically a collateralized loan, whereas Fed funds are uncollateralized
<h3>What is
collateralized loan?</h3>
Collateralized loan obligations are a type of securitization in which payments from many small and big business loans are pooled and distributed to different classes of owners in different tranches. A collateralized debt obligation (CLO) is a type of debt obligation.
The use of a valuable item as collateral to obtain a loan is known as collateralization. If the borrower fails to repay the debt, the lender may seize and sell the asset to make up the difference. Asset collateralization offers lenders with some protection against default risk.
Collateral is a valuable object used to secure a loan. Lenders' risk is reduced by collateral. If a borrower fails on a loan, the lender can seize and sell the collateral to recuperate its losses.
To know more about collateralized loan follow the link:
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Answer:
<em>$0.48 per client-visit; $22,856 per month</em>
Explanation:
Where,
y2 is the total cost at highest level of activity; y1 is the total cost at lowest level of activity; x2 are the number of units/labor hours etc. at highest level of activity; and x1 are the number of units/labor hours etc. at lowest level of activity
<em>Variable Cost per Unit </em>
= (28,904 -28,227) / (12,600-11,199)
= $0.48
<em>
Total Fixed Cost </em>
= y2 ? bx2
= 28,904 - $0.48 * 12600
= $22,856.00
