Asset transformation by financial intermediaries is the purchase of a primary asset or securities and their transformation into other assets in terms of risk and maturity.
A type of transformation where banks use deposits (mobilized funds) to generate income by pooling deposits to provide loans. More precisely, asset transformation is the process of converting bank liabilities (deposits) into bank assets (loans). Deposits are inherently subject to withdrawal by customers (depositors) at any time or as set out in the deposit contract/agreement. Loans are bank assets because they represent money that the bank lends and expects to receive back in the form of repayment of principal and interest. As such, banks perform asset transformation by providing long-term and short-term loans, with the interest differential being their transformation returns. Banks and other financial institutions usually perform asset transformation by offering their customers various financial products on both sides of the balance sheet, such as deposits, investment and loan products, etc.
Learn more about risk and maturity.
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Answer:
The correct answer is option a.
Explanation:
The price elasticity of demand shows the responsiveness of quantity demanded to change in price. It is measured by the ratio of proportionate change in quantity demanded and proportionate change in price.
Unit price elastic means that the price elasticity of the good is 1. This implies that the percentage change in quantity demanded must be equal to the percentage change in price.
Answer:
Explanation:
gate City bank reconciliation statement as at December 31, 2018
Balance as per cash book 2400
Direct payment to the bank (loan) 520
Less bank charges (30)
Add bank interest 20
Adjustment 510
Adjusted cash book balance 2910
Balance as per bank statement 3,810
Less outstanding check (1300)
Add deposit in transit 400
Adjustment (900)
Adjusted bank statement balance 2,910
C. The company’s prospectus
Answer:
Option D, Direct Materials, Direct Labor, & Manufacturing Overhead
Explanation:
Process costing with in a company is used as a method to assign manufacturing costs to the product units produced which are nearly identical.
For all items manufactured in a manufacturing firm, some process related cost is common in all cases such as direct material cost, conversion cost, labor cost etc. Also these cost parameters are same from one department to other.
Hence, option D is correct
