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Elena-2011 [213]
3 years ago
7

In ascertaining whether a borrower has the ability to pay off his loan over time, a mortgage bank may rely on calculating a tota

l debt ratio as part of its underwriting process. Utilizing the following information, calculate the total debt ratio. Monthly principal and interest on mortgage loan: $635, Monthly Tax and insurance payments into escrow: $125, Monthly Car lease payment (lease term is 3 years): $350, Gross monthly income: $2,500
A. 25.4%
B. 30.4%
C. 44.4%
D. 53.2%
Business
1 answer:
Paha777 [63]3 years ago
8 0

Answer:

Total debt ratio will be 44 %

So option (c) will be the correct option

Explanation:

We have given monthly principal and interest on mortgage loan = $635

Monthly Tax and insurance payments = $125

Car lease payment = $350

Now total monthly obligations = $625+$125+$350 = $1100

Gross monthly income = $2500

We have to find the total debt ratio

We know that total debt ratio is given by

Debt ratio =\frac{total\ obligation}{total\ income}=\frac{$1100}{$2500}=0.44=44%

So option (c) will be the correct option

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The simple deposit multiplier equals A. the ratio of the amount of deposits created by banks to the amount of new reserves. B. t
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Answer:

All of the above

Explanation:

A simple deposit multiplier is the quantity of cash kept in reserve by a bank. It is said to be percentage of the amount in deposit at the bank. If the bank has a deposit multiplier of 20%, it then means that the bank must be able to keep $100 in reserve for every $500 they have in their deposits. Then investors can access the remaining $400 available as bank loans.

4 0
2 years ago
Assume that you are a loan officer of a bank. A local church is seeking a $4 million, 20-year loan to construct a new classroom b
n200080 [17]

Answer:

Explanation:

a.

There is little information on how funds are used or how much money is spent to manage the church. The financial statements have been prepared incorrectly.

Interpretation:

While drafting the financial accounts, the church committed many errors. The church's revenue is equivalent to its daily operations operating expenditures. They have approximately $3 million in funding assets that they do not owe any money on.  

It may be deduced that the church is attempting to preserve asymmetric information, and therefore it will be better to justify its sources of income and use of money in order to determine whether they can or they cannot pay the debt.

b.

The revenue from various channels must be detailed in the yearly report so that the loan officer may make an informed judgment.

Interpretation:

Since payments and contributions account for 90% of revenue and revenue from other sources accounts for 10%, it's surprising how the church earns money in other ways as stated on the income statement. As a result, it's important to understand what other potential revenue streams the church has before approving the loan.

c.

The officer in charge of the loan should check the church's book records to make sure and guarantee that there are no outstanding loans. This situation necessitates a thorough examination and assessment.

Interpretation:

The church has $3 million worth of equipment. The church's expenses, on the other hand, are equivalent to the church's income. As a result, it's unclear how the church acquired the equipment without taking out a loan. As a result, the church must be urged to produce a full breakdown of its expenses, which may be thoroughly and fully studied to see whether there are any financing charges that the church is attempting to hide in its yearly reports.

d.

There is no direct or primary source of income for the church. It solely makes money from charity donations.

Interpretation:

The church's only sources of income are fundraisers and charitable donations. It also doesn't possess any significant revenue streams. Because the church is attempting to conceal numerous possible pieces of information, this may be a case of micro-management by the proprietors, and so these issues should be considered by the officer in charge of the loan before accepting the loan.

8 0
3 years ago
Part II: Article II, Section I of the U.S. Constitution provides that the president must "take care that the laws be faithfully
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Answer: Yes it is.

Explanation:

The Constitution puts the President at the head of the Executive branch of government and provides that the President should ensure that the laws of the land are faithfully executed.

Seeing as executive orders are issued to members of the executive - which are under the President - and are done to ensure that the laws of the land are carried out, the President is not only following the Constitution's directives in  Article II, Section I of the Constitution but doing it within their power as head of the executive.

Executive orders are therefore an implied constitutional power that the President has.

4 0
2 years ago
Which is the purpose of the U.S. treasury department?​
tatuchka [14]

Answer:

The Department of the Treasury manages Federal finances by collecting taxes and paying bills and by managing currency, government accounts and public debt. The Department of the Treasury also enforces finance and tax laws.

Give me brainliest answer pls

5 0
2 years ago
Edie would like to better understand a new code section enacted four weeks ago. Which of the following authorities will help Edi
Talja [164]

Answer:

Committee reports

Explanation:

Committee reports

Committee report will help Edie in order to understand the newly enacted code section .

Since ,

A committee report is the report which is submitted by the committee to an assembly on the matters related to the business , which is referred to committee or may be on other matters .  

Hence , the correct answer is C. Committee reports .

3 0
3 years ago
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