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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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Which of the following is not an example of a cost and its related cost driver? Cost Cost Driver A. Rent Square feet B. Transpor
valina [46]

Option C

Direct labor hours ; Indirect labor is not an example of a cost and its related cost driver

<u>Explanation:</u>

A cost driver triggers a variation in the price of the activity. The idea is everywhere ordinarily employed to allocate aloft prices to the abundance of built assemblies. It can further be related to activity-based costing inquiry to ascertain the circumstances of expenses, which can be done to depreciate overhead prices.

In unusual accounting systems, cost drivers are practically inapplicable in determining the enrichment, Quantity of set-ups, Amount of machine-hours, Amount of labor hours, Abundance of orders bound and uttered.

7 0
3 years ago
A city sells $15 million of general obligation bonds on October 1, 2019. The bonds mature at the rate of $1 million a year each
alexgriva [62]

Answer:

The multiple choices are:

a.$15,000,000

b.   $14,000,

c.    $13,750,000

d.   $0

The correct option is D,$0

Explanation:

The city by all standards should have adopted a modified accrual basis of accounting where amounts owed in terms of principal and interest payments are not recorded in the necessary books of accounts until they become due.

As at 30,2020,the amount due in respect of the loan has been recorded and paid off,hence as at 31st December,2020,no amount is due in respect of the general obligation bonds issued,hence no recording would be effected until next obligation date when the amount to be paid is due

4 0
3 years ago
A possible externality associated with the process of accumulating new capital is that: A. a reduction in labor productivity may
taurus [48]

Answer:

B. new production processes may be devised.

Explanation:

This means, the new capital in touch with the human innovation traits will generated ways to use this capital beyond their inventors knowledge. Giving the capital additional used. Assthis uses were discovered after the capital invention, are not included in the cost of the new capital therefore, are positive externalities of their.

Also, generally the labor productivity increases with new capital not decrease.

3 0
3 years ago
From march 1 to december 1 is how many months?
Ganezh [65]
The span of time is 9 months.
4 0
3 years ago
Amount of a product offered for sale at all possible market prices
Rama09 [41]

Answer:

Supply

Explanation:

Supply is the economic term that describes the amount of a product that firms as willing to sell at different price levels. The price of the product plays a major role in determining the quantity of supply. As per the law of supply, the higher the price, the higher the quantity firms will be willing to supply.

Although the price affects supply, several other such as the price of related goods, cost of inputs, production technology, and government factors influence supply. Supply can be associated with a specific price, or all possible prices, as illustrated in a supply curve.

8 0
3 years ago
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