Answer:
Commercial banks, required reserve, loans, deposits, create.
Explanation:
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 money.
The major function of commercial banks is
1. Accepting deposits from people and business organzations.
2. Giving loans to Customers to be paid at a specific period of time at an agreed interest rate.
Required reserve is the minimum amount of money which in required for a commercial Bank to hold/save out of every deposit. If the required reserve is 10% of every deposit, a customer customer deposited $100. The required will be $10 which the bank will hold. The remaining $90 is the balance which banks can loan out to Customers.
Commercial Banks make profit by charging a higher interest rate on loan and lower interest rate on deposits. For example: 7.5% interest rate on loan and 2.5% interest rate on deposits. The 5% difference is the bank Profit.
The following are the three issues:
- How to assemble undertaking into singular employments
- How to gather occupations into capacities and divisions
- How to allow expert and arrange or incorporate capacities and divisions
Organizational structure is a framework that comprises of unequivocal and certain institutional principles and approaches intended to plot how different function parts and duties are designated, controlled and composed.
Based on the above scenario, the z test can be appropriate to be used. A z-test is a factual test used to decide if two populace implies are distinctive when the differences are known and the specimen measure is substantial. The test measurement is expected to have an ordinary dissemination, and irritation parameters, for example, standard deviation ought to be known for an exact z-test to be performed.
Answer:
A). Ending Inventory = Beginning Inventory + Units Produced-Sales
Example
For March = 9375-4250 = 5125
For April = 5125+9375-8250 = 6250
B). ) Inventory cost = $12*Ending Inventory
Financing Cost = 0.01*Inventory Cost
For March = 12* 5125 = 61500 = Inventory Cost
Financing Cost = 0.01*61500 = $615
Adding for all months
Total Financing cost = $1620