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Virty [35]
3 years ago
15

How do banks benefit of giving people loans

Business
2 answers:
DIA [1.3K]3 years ago
8 0
Search Results
Featured snippet from the web
It all ties back to the fundamental way banks make money: Banks use depositors' money to make loans. The amount of interest the banks collect on the loans is greater than the amount of interest they pay to customers with savings accounts—and the difference is the banks' profit. I agree with the other person it was on the internet. Hope this helped :)
Kitty [74]3 years ago
5 0

Answer: It all ties back to the fundamental way banks make money: Banks use depositors' money to make loans. The amount of interest the banks collect on the loans is greater than the amount of interest they pay to customers with savings accounts—and the difference is the banks' profit.

Explanation: Hopefully this helped!

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An analyst gathered the following information about a company: 01/01/04 - 50,000 shares issued and outstanding at the beginning
Ray Of Light [21]

Answer:

Company A

The company's weighted average number of shares outstanding at the end of 2004 is:

= 53,188 shares.

Explanation:

a) Data and Calculations:

Date        Description                               Weight    Weighted Average

01/01/04 - 50,000 shares issued

 and outstanding                                      12/12     = 50,000

04/01/04 - 5% stock dividend (2,500)      9/12     =     1,875

10/01/04 - 10% stock dividend (5,250)     3/12      =     1,313

Total weighted average number of shares =          53,188

4 0
3 years ago
if the APY of the savings account is 1.8% and if the principal of the savings account was $2,200 for an entire year what will th
zalisa [80]
2596.balance for year
7 0
4 years ago
True or False? Financial instruments can be grouped by time to maturity (money vs. capital) or type of obligation (stock, bond,
blondinia [14]

Answer:

True

Explanation:

Financial Instruments are agreements pertaining to the exchange of money between parties. The financial instruments could be in the form of cash or the right bound by contractual laws to receive or deliver items with monetary value. Shares, bonds, loans, and derivatives like futures and forwards are other examples of financial instruments. These financial derivates are securities whose prices are hinged on underlying assets like bonds, stocks, commodities, and currencies.  Cash instruments, on the other hand, have their prices determined mainly by the market fluctuations.

Classification of financial instruments could be based on the asset or debt classes. The debt classification could also be broken down as being long or short term. So, the grouping by time to maturity (money vs. capital) or type of obligation (stock, bond, derivative) is a system of classifying financial instruments.

6 0
3 years ago
BR Company has a contribution margin of 18%. Sales are $447,000, net operating income is $80,460, and average operating assets a
Lilit [14]

Answer:

return on investment = 60.50 %

Explanation:

given data

contribution margin = 18%

Sales = $447,000

net operating income = $80,460

average operating assets = $133,000

to find out

company's return on investment (ROI)

solution

we know that return on investment formula that is express as

return on investment = \frac{net \ operating \ income}{average \ operating \ assets}    .........................1

put here value we get

return on investment = \frac{$80,460}{$133,000}

return on investment = 0.604962

return on investment = 60.50 %

4 0
3 years ago
What is primarily used to help design products that will connect product attributes with customer desires?
Anarel [89]

Answer:

House of Quality Matrix

Explanation:

House of quality matrix is a diagrammatic representation of how well a product is catering or serving the needs of a customer.

Such a matrix is suitable when an organization is desirous of making product improvements and also when it needs to ascertain customer satisfaction with respect to it's product.

The matrix helps an organization to decide and arrive at conclusions with respect to necessary product changes and improvements required so as to serve the best interests of it's customers.

6 0
3 years ago
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