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3 years ago

Where do banks get money to lend to borrowers?

Business

2 answers:

Korolek [52]3 years ago

7 0

The option D is correct.

Banks get money to lend to borrowers from the depositors.

Further Explanation:

The bank provides the money to the borrowers and deposits the money from the savers. The people save their excess money in the bank to earn the interest on the deposit money. The borrowers get the money from the bank and pay interest on the borrowing amount.

Depositors are those people who saves their money in the bank. Borrowers are those people who takes loan from the bank.

Justification for the correct and incorrect answer:

The bank’s management: This option is incorrect.

The bank’s management is the process involved in managing the bank. The management takes decision whether to give the loan to the person or not, how much amount of loan is to be extent. So, this option is incorrect.

Shareholders: This option is incorrect.

Shareholders are the owner of the bank, they provide finance to the bank for expanding the business. The amount of shareholder money cannot be used to provide loan. This option is not correct.

Government: This option is incorrect.

The government does not provide any type of financial help to provide the loan to the lender. So, this option is incorrect.

Depositors: This option is correct.

Depositors are those people who saves their money in the bank. This money is utilized for providing the loan to the borrower. So, this option is correct.

Learn more:

1. Learn more about federal reserve bank

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2. Learn more about recording bank account

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3. Learn more about national retails bank

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Answer details:

Grade: Middle School

Subject: Banking

Chapter: Borrowing

Keywords:

bank, lend, borrowers, customer, depositor, bank’s management, government, shareholders, excess money, interest rate, money, managing, owner, expanding the business, finance, borrowing.

Marysya12 [62]3 years ago

5 0

The answer is "depositors".

An individual who is making a deposit with the bank is known as a depositor. The depositor is the moneylender of the cash which will be come back to him/her toward the finish of the store time frame.

A depositor (you) places cash in a banks vault, at that point the bank putts enthusiasm on it, and can utilize it in the event that it needs to. Up to a specific measure of it remains in the bank on the off chance that you need to come and withdraw.

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Alja [10]

Answer: $10,906

Explanation:

Given that,

Purchased machinery at the beginning of Year 1 = $86,100

machinery has an estimated life of five years,

Estimated residual value = $4,305

Accumulated depreciation = $49,077 at the end of Year 2

Year 3 Depreciation expense:

= $\frac{Cost\ of\ machinery - Estimated\ residual\ value - Accumulated\ depreciation}{3}$

= $\frac{86,100 - 4,305 - 49,077}{3}$

= $10,906

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3 years ago

If competitors can copy or match the products and services the firm offers, it will be difficult to develop a sustainable compet

balu736 [363]

Answer:

resources that are valuable, rare, costly to imitate, and non-substitutable

Explanation:

If competitors can copy or match the products and services the firm offers, it will be difficult to develop a sustainable competitive advantage through product excellence. A firm can, however, develop an advantage through product excellence with resources that are valuable, rare, costly to imitate, and non-substitutable

Apart from product excellence, Intangible assets that have no physical presence like Brand reputation, trademarks and intellectual property are all intangible assets unlike physical resources, cannot buy from the market by other competitors. They are developed within a company and constitute the source of sustainable competitive advantage.

In particular, the resources that generate competitive advantage are those that possess the VRIO characteristics,which implies that they are

Valuable, hence there will be no competitive disadvantage

Rare, hence there will be no competitive parity

Imitate, - are costly and difficult to imitate hence they cannot be copied

Organised to Capture Value - which means they are non-substitutable.

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3 years ago

A basic Customer Relationship Management premise is that: a. each individual customer is limited to a single sale. b. customers

klasskru [66]

A basic Customer Relationship Management premise is that (B) customers form relationships with companies as opposed to companies conducting individual transactions with customers.

A tool known as customer relationship management (CRM) is used to handle all interactions and relationships between your business and its clients.
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sending a coupon along with a birthday greeting. giving a customer who hasn't bought anything recently a discount.

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2 years ago

Discuss the pros and cons of four performance appraisal tools

Tresset [83]

Answer:

Pros and cons are for every method listed below. A person can only see his strength and power during self assessment and he may ignore all his mistakes as it can be his over confidence in himself. Graphic rating may be disappointing as many employees can get same rating and there will not be any difference among them in the pay rise.

Explanation:

There are four major performance appraisal tools

1. Self assessment

2. Graphic Rating

3. Behavioral Checklist

4. 360 degree feedback

5 0

2 years ago

Beckingham Sports is an American sporting goods company. Based on $400,000 spent on market research and $600,000 spent on consul

Cerrena [4.2K]

Answer:

The correct answer is E)

Explanation:

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Some examples of Capital Expenditures include:

Construction of an additional building
Procurement of delivery vehicles
Procurement of new equipment
Rehabilitation of existing equipment

If one of the criteria for classification under Capital Expenditure is that it must be in the plan, then none of the above items mentioned in the question will fly.

Monies have already been expended on the options A, B, and C.

Option D is an offer to purchase an existing asset, not a planned investment. Therefore it also does not qualify.

Hence the correct answer is E.

Cheers!

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3 years ago