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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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Evelyn took out a car loan for $16,125 that has a 0% APR for the first 14 months and will be paid off with monthly payments over
Sidana [21]
She will be charged interest for 58 months
6 0
3 years ago
_________ leaders are agents of change because they develop an appealing vision of the desired future state, communicate that vi
Sloan [31]

Answer:

b. Transformational is the correct answer.

Explanation:

  • Transformational leaders motivate people to reach unexpected results.
  • Transformational leaders work with their workers to achieve change and inspire them to find different ways of achieving their goals.
  • Transformational leaders sometimes described as quiet leaders and they are appreciated to maintain confidence and courage.
  • Transformational leaders specialize in solving challenges and maximizing their team's potential and skills and to reduce the variation of the system.
7 0
3 years ago
Ibram Corporation had 200,000 shares of $1 par value common stock outstanding. If Ibram announces a 4-for-1 stock split, the par
LenaWriter [7]

Answer:

Post split Shares: 800,000

Post split par value: $0.25

Explanation:

Stock split seeks to increase the number of shares available for trading on the exchange thus increasing the liquidity. Stock split of 4 for 1 increases the shares by 4 times e.g. every holder of 1 share will receive total of 4 new shares. Thus the shares will increase to 4 times: (200,000 * 4) = 800,000.

Post split share price is calculated by dividing par value to the proposed split.

($1 / 4) = $0.25 per share.

3 0
3 years ago
What are some of the advantages and disadvantages of buying a home compared to renting.
nignag [31]

well with buying a home you are stuck with it you cant just move out but with renting you can say ohh im moving and you can give them your key and get out its really not that bard

5 0
3 years ago
What is the present value of $5,000 due in ten years assuming money grows according to compound interest and the annual effectiv
nadya68 [22]

Answer:

$ 3,085

Explanation:

Given that;

The present value(PV) ------ ???

Future  payment (F) ----  $5,000

The annual effective rate are 4%, 5% and 5.5% respectively, which can be illustrated as;

r = 0.04, 0.05 and 0.055 respectively.

The present value  formula is given as:

PV=\frac{F}{(1+r)^n}

PV=\frac{5000}{(1+0.04)^3(1+0.05)^2(1+0.055)^5}

PV = 5000 × (1.04)⁻³(1.05)⁻²(1.055)⁻⁵

= $ 3,084.814759

≅ $ 3,085

8 0
3 years ago
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