1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Svetradugi [14.3K]
3 years ago
6

What is the difference between a commercial bank and a savings bank

Business
2 answers:
Andreas93 [3]3 years ago
3 0
The primary difference is the way each is regulated, which determines the type of banking products they offer. ... Both commercial banks and S&Ls also make loans to businesses and government agencies.
DerKrebs [107]3 years ago
3 0

Answer:

A commercial bank provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit.

A savings bank has a primary purpose which is accepting savings deposits and paying interest on those deposits.

Explanation:

Commercial banks are<u> owned and managed by a board of directors selected by stockholders</u>. Many commercial banks are <u>large, multinational corporations.</u>

S&Ls (Savings and Loan banks- just another name) are <u>owned and chartered differently</u> than commercial banks, and are <u>generally more locally oriented in terms of customers.</u>

By law, S&Ls <u>may lend up to 20% of their assets for commercial loans</u>, and only half of that can be used for small business loans. S&L <u>must be able to show that 65% of its assets are invested in residential mortgages and other consumer-related assets.</u>

Commercial banks do not have these types of limitations that S&L banks do.

Hope this helped :)

You might be interested in
An economic contraction caused by a shift in aggregate demand causes prices to a. rise in the short run, and rise even more in t
raketka [301]

Answer:

c. fall in the short run, and fall even more in the long run.

Explanation:

The aggregate demand shifts to the left in recession or contractions, in consequence the level of prices falls. For this analysis we consider the shor-run supply curve with a positive slop.

As we know, the economy in the long run tends to equilibrium, where the the production level is fixed and equal to the potential of production of the economy. The initial reduction of prices incentives the consumption in the long run, stabilizing with the long run quantites in a minor level of prices.

In the attached image you can observe the process described previously.

3 0
4 years ago
Please help with this credit card problem:
EleoNora [17]

Answer:

C because I see you

Explanation:

5 0
3 years ago
The government wants to make Medicare benefits available to more people, but to achieve this goal, it needs to make cuts in the
Lera25 [3.4K]

Answer:

Elective surgery due to its lower marginal return rates

Explanation:

In the given instance it is provided that the government wants to increase the reach of medicare benefits to more people. Also for achieving this it has to decrease the current expenditure.

As it is clear that the benefits from elective surgery in terms of utility are not equivalent to the proportional amount spent on such surgeries in terms of dollar, then the surgeries do not stand to provide effective results.

Accordingly such elective surgeries can be withdrawn.

6 0
3 years ago
To help with hiring decisions during peak seasons and holidays, Cards for All Seasons uses time-series forecasts, like sales fro
nexus9112 [7]

Answer:

B) A Trend Decision

Explanation:

Trend decision is also known as Trend forecasting. It is a complicated and useful way in which data of past sales is used to determine future trends. It is generally used by marketing experts to determine future sales growth. It can be used in different areas of a business.

An example of the use of trend forecasting is the fashion industry. Since customers change their purchasing behavior rapidly, so a particular garment becomes popular for one season and then it goes out of fashion. Fashion forecasters use trend forecasting to predict the trends by including the work designers and the early adoption of a trend among the people

5 0
3 years ago
A listing broker should: a. deliberately mislead owners about market value to obtain the listing. b. inflate the list price if t
Vinil7 [7]

Answer:

c. suggest a listing price based on comparable market data.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.

Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

Generally, a listing broker should suggest a listing price based on comparable market data.

5 0
3 years ago
Other questions:
  • Can someone help me on this
    6·2 answers
  • One advantage of group decision making is that it usually provides ___ than individual decision making
    10·1 answer
  • The two basic types of advertising are ____, which makes potential customers aware of products and their need for them, and ____
    9·1 answer
  • An economy is created by interactions between which two groups of people
    5·1 answer
  • Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning
    15·1 answer
  • You invested $5000 of your own money and borrowed $5000 from your broker to purchase shares of a company trading at a share pric
    10·1 answer
  • Qtr5g66677<br> Math problem
    15·1 answer
  • etaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Cal
    6·1 answer
  • Complete the diagram of the Circular Flow of the Economy. Some answers are listed twice on purpose.
    5·1 answer
  • Although the business plan has a great amount of detail and requires thoroughness, a well-explained business idea will come to l
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!