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swat32
3 years ago
13

Why banks exist as financial intermediaries.

Business
1 answer:
omeli [17]3 years ago
4 0

Answer:

Banks act as financial intermediaries because they stand between savers and borrowers. Savers place deposits with banks, and then receive interest payments and withdraw money. Borrowers receive loans from banks and repay the loans with interest.

Explanation:

;)

You might be interested in
Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August, of which $212,000 w
VikaD [51]

Answer:

                                                             Dr.            Cr.  

Work in progess                              139,000

Salaries and wages payable account                139,000

Explanation:

Direct Labor are charges to work in progress account and a payble is created as a result.

Total Labor cost = $212,000

Indirect cost = $73,000

Direct labor cost = $212,000 - 73,000

Direct labor cost = $139,000

3 0
3 years ago
Read 2 more answers
If the borrower has a previous foreclosure, can he use FHA to purchase a new home?
snow_tiger [21]

Answer:

Yes he can use FHA

Explanation:

Because FHA Loans are the most forgiving of foreclosures. To qualify for an FHA mortgage loan, you must wait at least three years after the foreclosure. The three year clock starts ticking from the time that the foreclosure case has ended, usually from the date that you prior home was sold in the foreclosure preceeding. If the foreclosure also involved an FHA loan, the three year waiting periods starts from the date that FHA paid the prior lender on its claim

6 0
3 years ago
Karina looked at her paycheck stub. Her gross pay was $245 and her net pay was $200. How much did she have in deductions?
sammy [17]
How much did she have in deductions? $45
7 0
3 years ago
Read 2 more answers
Computers Inc. is a United States computer and consumer electronics company that designs and manufactures electronic devices. Co
Galina-37 [17]
No the electronic devices where made to text and easier to text
5 0
3 years ago
disposable income (billions of dollars per year) total consumption (billions of dollars per year) $ 0 $ 50 200 210(table 9.1) wh
katovenus [111]

C = 50 + 0.8Y is the consumption function that is consistent with the provided data. The MPC is determined by subtracting the change in consumption from the change in disposable income, which equals 160/200, or 0.8.

Marginal propensity calculation.

$200 billion less $0 billion equals $200 billion in changes to disposable income.

Consumption change equals $210 minus $50, or $160 billion.

MPC = Change in Consumption/Change in Disposable Income, which equals $160 billion/$200 billion and is equal to 0.8.

There is a 0.8 marginal tendency to consume.

Step 2

This is how consumption function is defined.

C = a + bY

Where,

a = Consumption at zero income level

b = MPC

In given case,

$50 billion would be consumed at a level of income zero.

MPC is 0.8

So,

C = 50 + 0.8Y is the consumption function that matches the provided data.

To learn more about consumption function

brainly.com/question/14975005

#SPJ4

4 0
1 year ago
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