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suter [353]
3 years ago
8

Where do banks get money to lend to borrowers?

Business
1 answer:
PolarNik [594]3 years ago
7 0

Answer:

They create the money they lend to borrowers.

Explanation:

:) Let me know if this helps!

(Are you talking about commercial banks?)

You might be interested in
which group has individual investors as participants and is a lender of funds to the financial markets? multiple choice question
Feliz [49]

The financial markets are financed by those with money but no ideas, and they also include private investors as participants.

A marketplace where bonds, equities, securities, and currencies are traded is referred to as a financial market. Few financial markets do daily security transactions worth trillions of dollars, whereas some are smaller and less active. These are marketplaces where investors gain more money, firms increase their cash flow, and dangers are reduced.

The selling and purchasing of financial assets and securities takes place in a venue known as a financial market. In the economy of the country, it distributes scarce resources. By facilitating the transfer of funds between investors and collectors, it acts as an intermediary.

On a financial market, the stock market enables investors to buy and sell shares of publicly traded corporations. The primary stock market is where new stocks are initially offered, together with other stock securities.

Learn more about financial market here

brainly.com/question/27961174

#SPJ4

3 0
2 years ago
The two main types of e-commerce are
ivann1987 [24]

Answer:

B2B (Business to business) and B2C (Business to consumer)

8 0
3 years ago
When analyzing financial statements it is important to recognize that accounting distortions can arise. Accounting distortions a
Lunna [17]

Answer:

The correct answer is B. arise often through application of (correct) accounting principles .

Explanation:

Accounting analysis is an important precondition for an effective financial analysis. This is because the quality of the financial analysis, and the inferences made, depends on the quality of the implicit accounting information, the raw material for the analysis. Even though the accounting according to the accumulation principle allows to perceive the financial performance and condition of a company, which is not possible in the case of cash-based accounting, the imperfections of the company can distort the economic content of the financial reports.

5 0
3 years ago
Pompeii, Inc., has sales of $50,000, costs of $23,000, depreciation expense of $2,250, and interest expense of $2,000. If the ta
Zielflug [23.3K]

Answer:

operating cash flow = $21307.5

Explanation:

given data

sales = $50,000

costs = $23,000

depreciation expense = $2,250

interest expense = $2,000

tax rate = 23 percent

solution

we get here operating cash flow for that

EBIT  = Sales - Costs - Depreciation   .............1

EBIT  = $50,000 - $23,000 - $2,250

EBIT   = $24750

and taxes is

taxes = tax rate × EBIT    ..........2

taxes = 0.23 × $24750

taxes = $5692.5

so here operating cash flow that is

operating cash flow = EBIT + Depreciation - Taxes   ..........3

operating cash flow = $24750 + $2,250 - $5692.5

operating cash flow = $21307.5

6 0
3 years ago
Retained earnings:
Lubov Fominskaja [6]

Answer:

1.Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception.

Explanation:

Retained earnings is an element of the balance sheet that represents the accumulated net income and losses and the amount paid to the shareholders over the years as dividend.

Each year, the company's net income or loss from the statement of profit or loss is posted into the retained earnings account.

It is an integral part of the owners equity along with ordinary share capital.

As such, retained earnings generally consists of a company's cumulative net income less any net losses and dividends declared since its inception.

7 0
3 years ago
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