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Artemon [7]
2 years ago
13

6. Commercial banks create money by

Business
2 answers:
Reika [66]2 years ago
7 0

A. Making loans while only keeping a fraction if deposits in. Commercial banks make money by providing loans and earning interest income from those loans.Customers who deposit money into these accounts effectively lend money to the bank and are paid interest. However, the interest rate paid by the bank on money they borrow is less than the rate charged on money they lend.
AveGali [126]2 years ago
3 0

Answer: I think is A

Explanation:

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Which contractual standard for product safety and liability says that buyers chose to make purchases and therefore every purchas
taurus [48]
<span>The contractual standard for product safety and liability that says the buyer chose to make the purchases and knows the each purchase involves informed consent is often referred to as the standard of caveat emptor. This is simply a warning that lets the buyer know and understand the product is sold as is and is subject to all defects. Basically, another way of saying buyer be ware.</span>
3 0
3 years ago
what is the present value of a deferred perpetuity that pays $141 annually with the first payment occurring at year 5? assume th
yKpoI14uk [10]

The present value of a deferred perpetuity is $1,938.89.

What is present value?
The present value of a prospective sum of money or cash flow stream given a specified return rate is known as its present value (PV). The present value of future cash flows is reduced by the discount rate, and the higher coupon rate, the lower the present value of future cash flows. The key to correctly valuing future cash flows, whether they are earnings or debt obligations, is determining the appropriate discount rate. The concept of present value states that a quantity of funds today is worth greater than the same amount in the long term. In other words, money gained in the long term is not as valuable as money received today.

The present value of a deferred perpetuity that pays $141 annually with the first payment occurring at year 5 is $1,938.89. This can be calculated by taking the present value of an ordinary annuity formula, which is PV = A / (1 + r)^n, and adding 5 to n. This gives the equation PV = A / (1 + r)^(n + 5), which can be simplified to PV = A / (1 + r)^n * (1 + r)^5. Thus, the present value is $141 / (1 + 0.06)^10 * (1 + 0.06)^5, which equals $1,938.89.

To learn more about present value
brainly.com/question/20813161
#SPJ4

3 0
1 year ago
If France had positive net exports last year, then it Group of answer choices sold more abroad than it purchased abroad and had
Snowcat [4.5K]

If France had positive net exports last year, then it (A) sold more abroad than it purchased abroad and had a trade surplus.

<h3>What is trade surplus?</h3>
  • When focused simply on trade effects, a trade surplus indicates that a country's goods are in high demand on the global market, which raises the price of those items and leads to a direct strengthening of the home currency.
  • When exports surpass imports, the trade balance (surplus) is positive.
  • When exports are fewer than imports, the trade balance is negative (deficit).
  • When a country exports more goods than it imports, it has a trade surplus.
  • For example, if China exported $1 trillion in products while importing only $200 billion in goods, it would have an $800 billion trade surplus.

Therefore, if France had positive net exports last year, then it (A) sold more abroad than it purchased abroad and had a trade surplus.

Know more about trade surplus here:

brainly.com/question/4126723

#SPJ4

The complete question is given below:
If France had positive net exports last year, then it

A. sold more abroad than it purchased abroad and had a trade surplus.

B. sold more abroad than it purchased abroad and had a trade deficit.

C. bought more abroad than it sold abroad and had a trade surplus.

D. bought more abroad than it sold abroad and had a trade deficit.

7 0
1 year ago
Confirm that you can find the financial statements for Starbucks Corporation​ (SBUX) as of Sep​ 28, 2014 using the following​ so
Ksenya-84 [330]

Answer:

D

Explanation:

from the company web page

7 0
3 years ago
Suppose the nominal annual interest rate on a two-year loan is 8 percent and lenders expect inflation to be 5 percent in each of
Kisachek [45]

Answer:

C. 2 percent.

Explanation:

The computation of the annual real rate of interest is presented below:

Provided that

Nominal annual interest rate = 8%

Inflation rate = 5%

So, the annual real rate of interest is

Real rate of return = {( 1 + nominal annual rate of return) ÷ ( 1 + inflation rate)} - 1

= {( 1 + 0.08) ÷ ( 1 + 0.05)} - 1

= 2%

5 0
3 years ago
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