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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 :)

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What term describes the situation where an employer changes group plan coverage to another insurer, and all employees eligible f
djverab [1.8K]

Answer: No loss, no gain

Explanation:

When an employer changes group plan to another insurer, all employees under the previous coverage would be eligible to gain under the new plan without any delay for probation.

3 0
3 years ago
Which part of a business proposal discusses the history of a product, service, or company with a focus on the relationship betwe
Zolol [24]

Background-- part of a business proposal discusses the history of a product, service, or company with a focus on the relationship between the writer and a potential buyer

What is business proposals?

Effective business proposals are built around a great idea or solution. While you may be able to present your normal product, service, or solution in an interesting way, you want your document and its solution to stand out against the background of competing proposals.

An effective business proposal:

informs and persuades efficiently. It features many of the common elements of a report, but its emphasis on persuasion guides the overall presentation.

How do you introduce a business proposal?

You should write the introduction to your proposal first, quickly summarizing all sections of the business plan. It should also be the last part of the plan you work on. The overview in the introduction will help you to know what to cover as you write all parts of the business plan in greater detail.

Learn more about business proposals:

brainly.com/question/24028071

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4 0
2 years ago
Knowledge Check 01 Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 p
Flauer [41]

Answer:

C. 25.5%

Explanation:

Net operating cashflow = (250,000 - 100,000) = 150,000; This is a recurring cashflow; the PMT

Cost of equipment; the PV = 400,000

Next, calculate the rate of return  using Net operating cashflow per year and the equipment cost. You can do this with a financial calculator;

N =5

PMT = 150,000

FV = 0

PV = -400,000

then CPT I/Y = 25.41%

Therefore the return is closest to 25.5%

8 0
3 years ago
Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 years. T
eduard

Answer:

The price of the bond is $ 21,541.53  

Explanation:

The price of the bond is the present value of all cash inflows expected from the bond throughout the bond's life.

The cash inflows comprise of coupon interest interest payments as well as the repayment of the principal amount(the face value of $20,000) at redemption.

The present value is computed by multiplying the cash inflows by the discount factor.

The formula for discounting factor =1/(1+r/2)^t

r is the required yield of 5.4% divided by 2 since the coupon is payable twice a year.

Find attached.

Download xlsx
7 0
3 years ago
In a simple economy in which prices are constant and with no income taxes or imports, the marginal propensity to consume is 0.8.
lutik1710 [3]

Answer: Increase by $250

Explanation: As per the general rule of economics when there is an increase in income, that increase will eventually lead to increase in expenditure.

As, there is an increase in investment in the given case so it will result in increase in income for the economy.

We can compute it  as :-

change\:in\:income=\frac{change\:in\:investment}{1-MPC}

change\:in\:income=\frac{\$50}{1-0.8}

                                        = $250

Therefore, the expenditure would increase by $250

5 0
3 years ago
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