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Kaylis [27]
3 years ago
8

How do banks make a profit?

Business
1 answer:
fiasKO [112]3 years ago
8 0
Banks make a profit by c. charging interest
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The formula for finding the net present value of a cash outflow now, a positive cash flow in 1 year, a positive cash flow in 2 y
melamori03 [73]

The formula for finding the net present value is -C0 + [C1 / (1 + r)] + [C1 / (1 + r)²] + [C1 / (1 + r)³].

<h3>What is the net present value?</h3>

The net present value is a capital budgeting method. Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Only projects with a positive net present value should be accepted. A project with a negative net present value should not be chosen because it isn't profitable. When choosing between positive  net present value projects, choose the project with the highest  net present value first because it is the most profitable.

An advantage of the net present value method of capital budgeting is that it considers the times value of money. A disadvantage of net present value is that it is difficult to estimate the accurate discount rate.

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7 0
2 years ago
Deciding how to make the best use of limited resources to satisfy virtually unlimited wants is known in economics as.
mel-nik [20]

Deciding how to make the best use of limited resources to satisfy virtually unlimited wants is known in economics as economizing behavior.

<h3>What is Economics?</h3>

Economics is a social science that examines the decisions that people, businesses, governments, and nations make regarding the distribution and consumption of products and services.

Economics is the study of how individuals divide up finite resources between individual and group uses for production, distribution, and consumption.

Economics has two subfields: macroeconomics and microeconomics. Efficiency in exchange and production is the main focus of economics. Both the Consumer Price Index (CPI) and the Gross Domestic Product (GDP) are frequently used economic statistics.

To spot prospective trends or predict the future of the economy, economists use economic indicators like the GDP and the consumer price index.

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7 0
2 years ago
If the market price is above or equal to the average cost, but below the average cost the firm should keep producing in the run
tangare [24]

If the market price is above or equal to the average variable cost, but below the average total cost the firm should keep producing in the run even though it does so at a loss.

<h3>When should a firm shut down production?</h3>

A firm should continue production in the short run if the price is above the average variable cost even if price is below the average total cost. The short run is a period when at least one or more factors of production are fixed.

To learn more about when a firm should shut down, please check: brainly.com/question/13034691

6 0
2 years ago
The firm's policy is to have finished goods inventory on hand at the end of the month that is equal to 70 percent of the next mo
Dahasolnce [82]

Answer:

\left[\begin{array}{ccccc}& &September&October&November\\&$sales&6000&6800&5600\\&$Desired ending&4760&3920&4270\\&$Total Needs&10760&10720&9870\\&$beginning&4200&4760&3920\\&$Production Requirement&6560&5960&5950\\\end{array}\right]

MISSING INFORMATION ATTACHED

Explanation:

\left[\begin{array}{ccccc}& &September&October&November\\&$sales&6000&6800&5600\\&$Desired ending&4760&3920&4270\\&$Total Needs&10760&10720&9870\\&$beginning&4200&4760&3920\\&$Production Requirement&6560&5960&5950\\\end{array}\right]

The sales forecasted plus the desired ending inventory is the complete needs the sales department expect to be fullfill

Then, as the company has a beginning invneotry each period a portion of this needs is already fullfil thus, the difference are the production requirements.

7 0
4 years ago
Tony is working with a law enforcement agency to place a wiretap pursuant to a legitimate court order. The wiretap will monitor
qaws [65]

Answer: Passive wiretap

Explanation: passive wiretap is the monitoring or recording of data that attempts only to observe a communication flow and gain knowledge of the data it contains, but does not alter or otherwise affect that flow. Wiretapping is a process in which passive devices are used to monitor or record data that are being transmitted in a line or a loop, Passive wiretapping happens when attackers are trying to obtain users information through the communication channel.

4 0
3 years ago
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