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Nana76 [90]
3 years ago
9

What’s the difference between a commercial bank and an investment bank? List the major types of financial institutions, and brie

fly describe the primary function of each. What are some important differences between mutual funds, Exchange Traded Funds, and hedge funds? How are they similar?
Business
1 answer:
Mars2501 [29]3 years ago
4 0

Answer:

A commercial bank is one which takes deposits to customers and loans them out to other customers, and makes a profit by charging a higher interest rate then it pays. Whereas in Investment bank is a bank which provides services to other companies for their IPOS, Asset management, helps create SPVs, helps in mergers and acquisitions etc.

Major Financial institutions

Central Banks: Setting Monetary Policy

Commercial Money: Taking Deposits and Lending that money

Investment Banks: Handling mergers and acquisitions

Mutual funds and ETFs are very similar in the nature that various investors are allowed to invest in them and it is very safe and passive type of investing, low risk and low return but the major difference is that ETFs follow a particular index for eg S and P 500 etc

Hedge funds on the other hand only allow high net worth individuals to invest and have limits on how early you can withdraw your money, they use very complex, active and high risk, reward strategies.

Explanation:

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Which of the following best describes the consideration on the part of an insurer?
ehidna [41]

Answer:

B) The promise to pay in the event of a covered claim

Explanation:

The promise to pay in the happening of a covered claim apparently describes the promise to pay in the process of covered claim. In insurance matter of contracts, the insurer assures to pay for covered losses which the insured suffers and the insured promises to do what the contract says and pay the premium. Most non insurance contracts are fluctuating contracts. The amount of attention given by both parties are almost equivalent.

4 0
3 years ago
Love Company’s accounting records show an after-closing balance of $42,100 in its Retained Earnings account on December 31, 2018
konstantin123 [22]

Answer and Explanation:

  • Closing Balance (Retained earning ) of 31 Dec 2018 is called Opening Balance of 1 Jan 2019 , i.e. $42,100
  • There is no particular information provide for 1 Jan 2018 .So, assume there is Zero balance of retained Earning
  • Calculation of retained earning of 31 Dec 2017

Retained earning                             $42,100

Less: revenue during the year        $19,400

Add: Expenses During the year      $9,800

<u>Add : Dividend                                  $500 </u>

Retained earning on 31 Dec 2017 $33,000

  • Retained earning is a temporary account So, $33,000 is balance of Retained earning At 30 June 2018.
4 0
3 years ago
Suppose that the federal government places a binding price floor on chocolate. To help support the price floor, the government p
Pavlova-9 [17]

Answer And Explanation:

a) Quantity of chocolate demanded by consumers will decrease

This is because there is a minimum price which makes product more expensive. The higher the price, the less the quantity demanded

b) Quantity of chocolate supplied by producers will increase

This is because price has increased with the government's price floor. The higher the price, the higher the quantity supplied.

c) Quantity of chocolate purchased by the government will increase

This is because there is surplus supply and therefore government would need to buy more to support the price floor and buy leftover chocolates in the market

7 0
3 years ago
Firms face competing pressures in the marketplace–how to achieve lower costs through proven approaches to production, while look
Solnce55 [7]

Answer:

1. Pressures for local responsiveness may make it difficult to ______________________________.

 

monitor and adapt to changing customer tastes in a large number of foreign markets

2. __________________________is the most appropriate strategy when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.

Localization strategy

3. ___________________________ is the most appropriate strategy when the firm simultaneously faces strong pressures for both cost reductions and local responsiveness.

 

Transnational strategy

4. A firm facing low pressures for local responsiveness and few pressures to contain costs might best pursue a(n) _______________________.

international strategy

5. Markets are dynamic, and any firm will face competition. In time, international and localization strategies tend to become less viable, and managers need to ________________________________.

orient their companies toward either a global standardization or transnational strategy  

Explanation:

When a company's global business activities are coordinated via cooperation and interdependence between its head office, operational divisions, and internationally located subsidiaries or retail outlets, the entity tends to realize more competitive advantages than when it uses a single strategy.  This is why the transnational strategy is offering the best alternative for international businesses in the globalized economy.

7 0
3 years ago
Read 2 more answers
Which of the following items are allowed when calculating an individual taxpayer's alternative minimum tax?a. Standard deduction
blsea [12.9K]

Answer:

The correct answer is letter "D": All of the above.

Explanation:

Alternative Minimum Tax (AMT) is an action taken by the Internal Revenue Service (IRS) to encourage every taxpayer to pay at least the minimum amount possible out of the income received. This includes a series of deductions that are not limited to <em>standard deductions</em>, <em>personal exemptions, medical and dental expenses, charitable donations, qualified taxing interest, </em>and <em>casualty losses</em>.

6 0
2 years ago
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