All categories

3 years ago

Identify one benefit and one problem for a commercial bank when it increases the amount of its bank capital?

Business

1 answer:

Dafna1 [17]3 years ago

6 0

Answer:

Like wholesale companies, the commercial banks buy in bulk and sell to the public at a discount. These discounts may offer free checking, no fees while opening savings or checking accounts. They also provide the customers with low interest rates on real estate loans.

Commercial banking or business accounts are often more expensive than traditional bank accounts. Banks may charge fees for night deposits, for processing a certain number of checks and for the payroll services.

You might be interested in

Monica needs to add a header to her report. She wants to have a different heading for the first page. Monica needs to select Dif

Viktor [21]

Answer:

The answer is header and footer told tabs design.

Explanation:

Monica needs to select header and footer told tabs design.

4 0

3 years ago

Pharoah Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1, (

Sedbober [7]

Answer:

inventory 76,000 debit

accounts payable 76,000 credit

---to record purchase on account--

freigth-in 1,276 debit

cash 1,276 credit

--to record payment of freigth--

accounts payable 7,600 debit

returns and allowance 7,600 credit

--to record return of good to supplier--

accounts payable 68,400 debit

purchase discount 2,052 credit

cash 66,348 credit

--to record payment within discount period--

Explanation:

As the company determinates inventory on a periodic basis we do not adjust right away, we use discount and return accounts instead of inventory

76,000 original invoice nominal

<u> -7,600 </u>discount

68,400 nominal after return subject to discount of 3%

<u> -2,052</u> discount

66,348 cash outlay to settle with supplier

3 0

3 years ago

You wish to retire in 10 years, at which time you want to have accumulated enough money to receive an annual annuity of $13,000

nexus9112 [7]

Answer:

Computation of contribution to retirement fund

Annual payment that the investor wants to receive after retirement = 13000

Number of years after retirement = 15

Interest rate = 0.11

Value of the fund at 12th year (Use Present Value Formula) = -93,481.30

Years remaining to retirement = 10

Interest rate = 0.09

Annual contribution upto retirement (Use PMT Formula) = -14,566.27

3 0

3 years ago

You are considering the purchase of an industrial warehouse. The purchase price is $1 million. You expect to hold the property f

Oliga [24]

Answer:

A. Cap rate = Debt Service/Current market price of asset

= $70,000/$1,000,000 * 100

= 7%

B. Debt coverage ratio = Net Operating Income/Debt Service

= $108,000/$70,000

= 1.54

C. The largest loan that can be obtained (other terms held constant) if the lender requires a debt service coverage ratio of at least 1.2 is:

= ($70,000 * 1.2)/10%

= $840,000

Explanation:

a) Data and Calculations:

Purchase price of the industrial warehouse = $1 million

Loan to finance acquisition = $700,000

Interest rate = 10%

Term of loan = 30 years

Type of loan repayment = interest-only payments

Annual debt service = $70,000 ($700,000 * 10%)

Effective gross income $135,000

Operating expenses 27,000

Net Operating Income $108,000

8 0

3 years ago

In expanded academic ASAP and other periodical databases it's best to put your exact phrase

creativ13 [48]

I think it is D but not 100% sure

4 0

3 years ago