All categories

3 years ago

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

2 answers:

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 owned and managed by a board of directors selected by stockholders. Many commercial banks are large, multinational corporations.

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

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

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

Hope this helped :)

You might be interested in

HR Professional Ethics

zmey [24]

Answer:

The communication and education strategies Will be my guidelines in achieving my goals

Explanation:

With the right knowledge of effective communication, in the areas of individual and group communication respectively, I will be able to effectively harness proposes plans and goals that awaits me as a HR professional. Secondly, with a sound understanding of educational tools which are inevitable in Management - Subordinate relationship, I will also be able to channel my focus to various results oriented trainings for various categories of workers.

Three Ethical challenges HR encounters

1. communication gap: This is the most difficult issues a HR can encounter. Some employer relegate the role if an HR to a mere admin manager, neglecting the fact that every employee wishes to be involved in the basic operations of the organisation. With a clear communication policy, such can be managed.

2. Gender differences: Some men teds to be bullies to their female counterpart at same level. A professional HR will always have a policy on discrimination.

3. Compensation and rewards: getting the approval and consent of other management team can be dicing as a HR professional. Organizing an award and recognition program can manage most if these challenges.

5 0

3 years ago

Miller's Dry Goods is an all-equity firm with 50,000 shares of stock outstanding at a market price of $40 a share. The company's

Artemon [7]

Answer:

Number of Shares Sold= 125

so correct option is C. 125 shares

Explanation:

given data

stock outstanding = 50,000 shares

market price = $40

interest and taxes = $142,000

debt = $500,000

interest = 6 percent

own = 500 shares

to find out

How many shares of Miller's stock must you sell

solution

we get here shares repurchased that is express as

shares repurchased = $\frac{500000}{40}$

shares repurchased = $12500

and

no of Shares Outstanding with Debt will be

no of Shares Outstanding with Debt = $50000 - $12500

no of Shares Outstanding with Debt = $37500

and

Value of Stock will be

Value of Stock = $37500 × $40

Value of Stock = $1500000

and

now Total Value will be

total value = $500000 + $1500000

total value = $2000000

so Weight of Debt is here

Weight of Debt = $\frac{500000}{2000000}$

Weight of Debt = 0.25

so Weight of Stock is

Weight of Stock = $\frac{1500000}{2000000}$

Weight of Stock = 0.75

Initial Investment is = 500 × 40

Initial Investment = $20000

and

Value on New Stock Position will be

Value on New Stock Position = 0.75 × $20000

Value on New Stock Position = $15000

New Shares is = $\frac{15000}{40}$

New Shares is = 375

and

Number of Shares Sold will be

Number of Shares Sold = 500 - 375

Number of Shares Sold= 125

so correct option is C. 125 shares

6 0

3 years ago

During the current year, Khalid was in an automobile accident and suffered physical injuries. The accident was caused by Rashad'

Snowcat [4.5K]

Answer:

c. Amber’s offer is $4,500 more. {$190,000 – ($50,000 + $90,000) + [$70,000 × (1 – .35)]}.

Explanation:

Step 1. Given information.

Amber offer = 190.000

Claiming= $50.000

Loss of income = $90.000

Punitive damages = $70.000

Step 2. Formulas needed to solve the exercise and Step 3. Calculation.

Original claim = ($50,000 + $90,000) + [$70,000 × (1 – .35) = 185,500

Step 4. Solution.

Difference = 190000 - 185500 = 4500

punitive damages only taxable

7 0

3 years ago

What is warehousing pleeeeeeeese i really need it

Nataly [62]

Answer:

a building for a storage of goods/merchandise

4 0

3 years ago

cnn.com runs a story reporting that the consumer confidence index has risen. having taken an economics class, you predict that s

klemol [59]

As a result of Consumer Confidence Index rising, spending in the economy will increase and aggregate demand will rise.

Consumer Confidence Index (CCI) refers to how optimistic people are about their finances. When the CCI is high:

People are more confident in their finances and the ability to make income in future
People will spend more in the economy because they are more confident in their income
Aggregate demand will rise as more people demand goods and services

If the CNN is correct in reporting that the CCI is rising, we can expect that spending in the economy will rise and so will aggregate demand.

In conclusion, spending in the economy will increase and aggregate demand will rise.

Find out more at brainly.com/question/9930012.

8 0

3 years ago